Hospital District representative Johnny Hipp told the Commissioners Court on Monday that the Nueces County Hospital District’s proposed FY26 budget would not raise taxes but reflects higher costs for jail health care and continued support for county health services. “Our budget proposes no new taxes and no new revenue rate,” Hipp said, and added that only about 30% of the district’s revenue comes from taxes: “the other 70% of our revenues come from non tax sources.”

Hipp said the district is working through several fixed payments to the county for public health and safety. On the county expenditures list he walked the court through earlier, he identified about $1.8 million in continuing support to the City‑County health department and continued funding for juvenile‑detention and jail health services. The district included an estimated $8.5 million for jail health care in FY26 because the contract with Wexford ends in December and new bids submitted in the recent RFP were higher. Hipp said he used “the average of the two highest bids” as a conservative placeholder while negotiations continue; Commissioners raised concern about the increase, which one commissioner described as roughly a $3.3 million rise over the current year’s budget.

The budget keeps payments to emergency medical services at roughly $650,000 annually to subsidize calls that occur in unincorporated parts of the county. Hipp explained these are per‑call payments that go to the responding entity only when the transport occurs; the hospital district pays roughly $300–$350 per qualifying call, he said. The FY26 list also includes continued support for the district’s graduate medical education program and other public‑health grants.

Hipp said the district removed a previously budgeted line for Amistad Community Health Center after the center did not invoice the district for two years; the budget currently shows zero for that item but Hipp said the funds could be reinstated if Amistad presents invoices. The draft also includes smaller additions such as $10,000 for a diabetes program increase, about $750 to expand Halo Flight support, and $90,000 to buy an ADA‑capable minivan for jail transports at the sheriff’s request. Hipp said the district prefers the county purchase a van and the district reimburse the county rather than the district owning an extra vehicle.

Commissioners asked for more detail on the hospital district’s large supplemental payments that are not tax‑based. Hipp said the district assesses a 6% fee on hospitals to create non‑tax revenues used to draw down federal supplemental payments to local hospitals; he described the total supplemental program as large relative to the $30 million of annual tax revenue the district receives. Hipp also warned there are personnel changes needed to account for federal health‑policy changes and potential program expansions the district may have to staff.

The hospital district’s finance committee will meet again before the district considers approving the budget on Aug. 26, Hipp said. Commissioners asked for spreadsheets and breakdowns of the district’s fee assessments, the current RFP bids on jail health, and confirmations (for items such as the jail minivan) in writing from sheriff’s office leadership before the district finalizes any purchases.

The hospital district presentation concluded with Hipp saying the district would work with the county on EMS, jail health transitions and the other items discussed and that the board would consider the budget later in August. Commissioners said they would monitor any negotiated contract outcome that could lower the placeholder figures in the draft.

Ending note: The hospital district’s finance committee schedule and the full draft FY26 packet were provided to the court; the district returns for a required formal budget vote at the end of August.