ELIMINATE HOSPITALS DISTRICTS TAXING AUTHORITY!
MR BYERS’ LETTER OF MARCH 20TH. THE SHADOW CONCURS
AND ASKS YOU TO WRITE YOUR VOLUSIA COUNTY REPRESENTATIVES!
Date: March 20, 2007
Representative Frank Attkisson
303 House Office Building
402 S. Monroe Street
Tallahassee, Florida 32399
E-Mail : Frank.Attkisson@myfloridahouse.gov
Dear Mr. Attkisson:
I just finished reading, with mixed emotions, an article entitled “House Council Takes Next Step Towards Property Tax Relief” and House Bill 7001. I agree with you, Florida families are seeing their dream of homeownership slip away as property taxes have skyrocketed. It is also clear that property taxes have smothered our states economy and are having a negative impact on Florida’s economic growth. House Bill 7001 which roll back local millage rates to 2000-2001, plus adjustments for growth and inflation, is a bold, long over due action. Further, I support replacing all property taxes and a 2% increase in the State sales tax.
The problem, however, with House Bill 7001 is the “Amendment” that was added to the House Tax Relief Plan to exempt hospital districts. We live in Volusia County, Halifax Hospital Medical Center Tax District, which was established by House Bill #1457. I am attaching, for your review, a study that was conducted on the “District” that clearly show that excluding hospital districts from the House Bill #7001 is inappropriate. Specifically, Volusia County House Bill #1457 & #0273:
* Deprives over 400,000 Volusia County residents of their civil liberty.
* For tax year, 2007 imposes in excess of $70.5 million in Ad Valorem property taxes on Volusia County Tax District residents. (Halifax Hospital Medical $52.7 Million; Bert Fish Hospital Medical Center $17.8 Million)
* For 2007 the Halifax Hospital Medical Center Ad Valorem Property Tax ($52.7 million) is greater than the cities of Daytona Beach, New Smyrna Beach and Deland Ad Valorem Property Tax Revenue COMBINED!!!
* For 2007, Bert Fish Medical Center Ad Valorem tax revenue of $17.8 million is $6.9 million greater than The City of New Smyrna Beach property tax revenue of $10.9 million.
* Halifax Hospital Medical Center Ad Valorem Tax Revenue has increased from $23,623 million in 2003 to $52,700 in 2007: a 223% increase in 5 years.
* Bert Fish and Halifax Hospital Medical are governed by a political patronage Governor appointed board of Commissioners. Once appointed these board’s are accountable to NO ONE!!
* In tax year 2006, approximately 10% of the “District” property tax revenue was used to support Halifax /Bert Fish Medical Centers.
* Today, Halifax & Bert Fish Hospital Medical Centers charter is levy and collect annually sufficient tax upon all taxable properties in the District, to make debt service payments on the bonds and debt service on notes, for expenses of operations, maintenance, construction, improvements and repairs of the hospital or clinics, and for the payment of any indebtedness or other necessary expenses in carrying out the business of the district. This practice is inconsistent with the Districts original charter.
* According to Florida Hospital Association, there are 227 acute care hospitals in the state of Florida. Of these 227 acute care hospitals, 95 are Not For Profit Corporations, 100 are Investor owned, and 32 are government/public owned. Approximately 86% of acute care hospitals in the state of Florida operate successfully without public Ad Valorem tax revenue. If 86% of all Florida Hospitals can operate without tax revenue what makes 32 Government/Public owner hospitals so special? WHY DO GOVERNMENT/PUBLIC ENTITIES NEED TO OWN HOSPITALS MEDICAL CENTERS?
* Mr. Mike Gentry, CEO of Florida Hospital Ormond Memorial, in attached e-mails, says, “Halifax can be managed with either no tax dollars or significantly less tax support.” “The real proof is that Halifax was profitable in 2006 even after subtracting all of the tax funding.”
* The Halifax Medical Center Board is also the Halifax Taxing District Board. The mission of the Halifax Medical Center Board is to govern the hospital. The purpose of a Halifax Taxing District Board is to ensure that the tax payer funds are used in the most efficient manner. The dual role of the board presents a natural conflict of interest. The Halifax model has an inherent conflict in its design and is inappropriate when public funds are involved.
The above data along with E-mails from Mr. Mike Gentry has been forwarded to Ms. Evelyn Lynn and the Volusia County Delegation. We have requested they introduce legislation this year to make all Hospital Board of Commissioners an elected position. The data provided above is for Volusia County. If we extrapolate this data for all 32 Government/Public Hospital districts for the state of Florida, we are talking about in excess of $750 million Ad Valorem Tax revenue dollars that affect in excess of 1 million tax payers.
Mr. Attkisson, reducing 2007 property tax rates to 2000-2001 roll back rates, adjuster for inflation and growth, will be a difficult task for local governments. Local programs will have to be reduced or eliminated. House bill #7001, which exempts hospital taxing districts from going to 2000-2001 roll back adjusted for inflation and growth is inappropriate.
We realize that Hospital District public funding is a sensitive political issue. However, if 86% of all Florida acute care hospitals can operate successfully without Ad Valorem tax revenue, why do our elected officials believe Floridians should continue to support 32 Government/Public mismanaged Hospitals that require, in excess of $750,000 annually in public tax revenues to survive? It is time that our elected officials step up to this issue, address the conditions that make them unprofitable, sell them or close them.
Sincerely;
John E. Byers