Travis County Approves Central Health Budget Amid Legal Concerns Over Dell Medical School Funding

On Tuesday, Travis County commissioners unanimously approved Central Health's fiscal 2025 budget and tax rate. Additionally, they resolved to seek legal counsel regarding a $35 million annual financing agreement with the University of Texas Dell Medical School. The agreement, which has been the subject of a 2017 taxpayer lawsuit and has stirred controversy, has prompted commissioners to seek legal counsel as they proceed.

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The budget approval resulted from weeks of presentations, public comments, and scrutiny regarding the funding arrangement. Central Health, the hospital district for Travis County, is primarily funded by property taxes and provides healthcare services to residents who earn less than 200% of the federal poverty level.

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Central Health's budget for 2025 has increased from $744 million in 2024 to $888 million. Critical expenditures include $158 million for healthcare services from partner organizations, $60 million for direct patient care, and $50 million for capital projects, including clinic construction and remodeling.

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Under the approved tax rate of 10.7969 cents per $100 property valuation, the average Travis County homeowner will experience a $65.60 increase in property taxes. This equates to an annual payment of $544.17 for a residence valued at $504,003.

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A new clinic in Del Valle and a remodeled respite center are among the initiatives that Central Health is implementing in the second phase of its seven-year health equity plan this year. Construction of new clinics in Colony Park, Hancock Center, and a Cameron Road respite facility will persist until fiscal 2026.

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