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House tax panel hears $253 million sales-tax proposal to stabilize Hennepin Healthcare
Summary
Hennepin Healthcare officials told the House tax committee that the system faces an acute cash crisis and structural deficits, and Rep. Agbaje’s draft DE2 would combine a 0.7–0.75% local sales tax (estimated at $253 million) and general-fund stabilization grants while creating governance changes and a task force; members pressed for a detailed spending plan and debated alternatives.
The Minnesota House tax committee on May 5 heard Hennepin Healthcare and Hennepin County officials lay out an urgent funding and governance proposal to stabilize Hennepin County Medical Center (HCMC), a statewide safety‑net hospital facing rising uncompensated‑care costs and looming Medicaid changes.
Representative Agbaje presented a draft DE2 to House File 4841 that would blend a 0.7–0.75% extension of the local ballpark sales tax (estimated to raise about $253 million if it had been in place this year), general‑fund stabilization grants, and governance changes including a county‑established hospital board and a task force to study long‑term stability.
Why it matters: HCMC is a high‑acuity, academic safety‑net center that serves trauma, transplant and other specialty needs for the state. County and hospital officials said the facility’s payer mix and recent disruptions have pushed its finances toward a crisis that risks staff departures and reduced services.
Hennepin County Commissioner Jeffrey Lundy, chair of the Hennepin Healthcare System board, told the committee that "property taxes alone can no longer be the sole public investment" in the system and highlighted the county’s 2025…
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