Texas hospitals could lose $27 million daily in Medicaid funding
With the state’s new fiscal year beginning on Sept. 1, Texas hospitals are expected to lose $27 million per day in additional Medicaid funding, according to the Texas Standard. The shortfall follows the Trump administration’s withholding of approval for about $9.8 billion in three programs under the Comprehensive Hospital Increase Reimbursement Program (CHIRP).
The program provides additional funding to cover the gap between Medicaid reimbursement rates and the actual costs hospitals incur when providing health services to Medicaid patients. Four million low-income Texans, most of them children, are enrolled in Medicaid.
“It is impossible for a hospital to take a huge loss on a Medicaid side of their portfolio and not have that impact services across the board, regardless of what type of insurance a patient
has,” said Sara González of the Texas Hospital Association.
The federal government is withholding these funds as it questions how local jurisdictions in Texas calculate the taxes they collect from hospitals. Under CHIRP, the federal government matches those funds so that the hospitals can cover their actual Medicaid costs.
Gov. Greg Abbott has called the funding holdup an economic “gun to the head.”
More than a dozen school districts face state takeover in 2027
More than a dozen Texas school districts could be taken over by the state next year if they do not improve student performance before next year’s A-F accountability ratings, according to The Texas Tribune. At least 14 districts had at least one school campus with a failing grade, according to this year’s preliminary ratings. Under state law, the Texas education commissioner must take over any district that receives five consecutive failing ratings — or close that failing school.
After a takeover, the district’s elected board of trustees is replaced with an appointed board of managers for at least two years.
Campuses under threat of closure next year are in the following districts: Clarksville, Cleveland, Coldspring-Oakhurst, Elgin, Judson, Kingsville, Manor, Nacogdoches, Poteet, Runge, San Angelo, San Antonio, Spring and Waco.
Districts have until Sept. 11 to appeal a school’s grade rating.
New laws took effect in Texas on Sept. 1
A bevy of new laws took effect Sept. 1, according to the Standard, including changes to how consumers can repair electronic devices, greater regulation of residential solar sales, and the allowance of certain forms of gold and silver as legal tender.
House Bill 2963 requires electronics manufacturers to provide owners and independent repair businesses with the parts, tools, and documentation they need on “fair and reasonable terms.” That requirement applies to consumer electronics with a wholesale price of at least $50, but only to items offered for sale in the state after Sept. 1.
The measure contains numerous exemptions, including many motor vehicles, farm equipment, large home appliances, and video-game consoles.
Another legal change requires residential solar system salespeople to register with the state and to work for a registered solar retailer. Consumer advocates said complaints about solar panels submitted to the attorney general increased by 818% between 2018 and 2023.
Another law recognizes qualifying privately produced silver and gold specie as legal tender in the state. The state comptroller is responsible for approving a system allowing electronic payments backed by bullion.
Lawmakers looking to further cut school property taxes
A Senate analysis indicates that nearly 40% of Texas homeowners pay no school property taxes. Some legislators hope to increase that share in the upcoming regular session, which begins in January. The Houston Chronicle reported that Lt. Gov. Dan Patrick directed a Senate committee to assess the impact of increased homestead exemptions in past years, with the possibility of raising them further next session.
Sen. Paul Bettencourt, R-Houston, chairs that committee and has been at the forefront of efforts to expand homestead exemptions. Currently, the first $140,000 of a residence’s taxable value is exempt. For those over 65 or with disabilities, the exemption rises to $200,000.
Patrick hopes to raise the homestead exemption to $180,000 and to lower the age at which homeowners qualify for a senior exemption from 65 to 55. For his part, Abbott is pushing a constitutional amendment that would eliminate school property taxes for homeowners.
Talarico accepts CNN debate invitation; Paxton mum
Talarico last week accepted CNN’s debate invitation, marking the fourth time the Senate Democratic nominee has agreed to debate Paxton, the Republican nominee. Paxton has indicated he would debate his opponent but hasn’t committed to a specific event, the Austin American-Statesman reported.
Paxton has not debated an opponent since before he was elected to statewide office in 2014. His senior adviser said in mid-August that Paxton would debate Talarico, and expected an announcement to be “forthcoming shortly.”
Gary Borders is a veteran award-winning Texas journalist. Email: [email protected]