End the Sandoval County Hospital Tax

By Stephen M. Barro – The Presbyterian and UNM hospitals in Rio Rancho have improved access to health care for many area residents and contributed to county employment and economic development, but it does not follow that they should continue to be subsidized by Sandoval County taxpayers. The hospitals now are well established and growing. The health systems to which they belong are two of New Mexico’s largest and richest institutions, each with ample resources to sustain and expand its hospital without further county funding.

The Presbyterian Health System, which includes both nonprofit hospitals and a major for-profit insurance company, had revenue of $2.9 billion in 2015. As of March 2016, it held cash and investments valued at $2.3 billion. Its 2015 income, after expenses, was nearly two hundred million dollars, and its CEO’s compensation runs four million dollars per year.

The UNM Sandoval Regional Medical Center is a component unit of the UNM Health System, which took in $1.2 billion in revenue in 2015. UNM, as a whole, had 2015 revenue of $2.6 billion and holds a $1.2 billion investment portfolio.
Compared with these impressive revenues, the Sandoval County subsidies—about seven million dollars per hospital per year—are tiny; they provide only one-fourth to one-half of one percent of each Health System’s annual receipts.

But the burden on county homeowners and businesses is not tiny. A family with a three hundred thousand dollar home will have paid over $3,300 to the hospitals from 2009 to 2016. If the tax is renewed, every homeowner will pay another two thousand, three thousand, five thousand dollars or more (depending on his or her property assessment) over the next eight years. The county’s total tax collections for the hospitals will reach $108 million this year, and that figure will more than double if the hospital levy is extended.

To deter voters from ending the hospital tax, Presbyterian and UNM officials have taken to claiming that the loss of subsidies could result in service cutbacks at the Rio Rancho units, but such claims would make sense only if each local hospital were on its own financially, not part of a multi-billion dollar system. In fact, Presbyterian views the profit-making potential of its Rust Hospital so positively that it is implementing a program to more than triple the hospital’s capacity. UNM has announced plans to expand services and build additional Rio Rancho facilities. Each system recognizes that its Sandoval County hospital is a good investment—with or without county subsidies—and each has both the means and the motivation to provide its hospital with the working capital it needs to reach its profitability goal.

When one weighs the heavy burden on county taxpayers against the marginal and unneeded contributions to UNM’s and Presbyterian’s massive budgets, the conclusion is clear: extending the subsidy is unjustified, and voters should reject the hospital tax on the ballot this November.

Stephen M. Barro, PhD, is a retired public finance economist living in Placitas.

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ES-CA Board Meeting Notes from August 1, 2016

The ES-CA board of directors met on August 1, 2016. Board members present:  BG; Chris Daul (CD); Susan Fullas (SF); and John McNerney(JM).  Lynn Koch  (LK)  A quorum was present.

Monthly reports were presented.

  1. Treasurer’s Report.  SF reported ES-CA had a balance of $18,227.67 as of July 31, 2016, reflecting income from dues of $296.50, interest income of $0.76, and no expenses for the month of July. The LPT balance was $46,714.48, reflecting interest income of $1.97 and no expenses for the month of July.
  2. Membership:  Jerry Saxton was absent.  He did send a report to the board after the meeting showing 144 paid members, and 382 current contacts.
  3. Communication:  CD reported that the Signpost had published the ES-CA submitted article in the August edition.  He noted that ES-CA would be placing an advertisement in the September issue of the Signpost about the Candidate’s Forum, scheduled for September 10.
  4. IT:  No report.
  5. Political/Legal:  JM reported that Jodilynn Ortiz was following up on the pipeline issue and had submitted an email to the board.
  6. Watchdogs:  LK reported that she had two volunteers ready to attend the last County P&Z meeting.  She noted that calling volunteers was a more effective method that emailing.
  7. LPT:  Dick Ulmer reported that the court had scheduled a hearing in order that the judge could reiterate her decision that LPT be joined as a party to the lawsuit by Sandoval County against Vulcan.

Current issues were discussed.

  1. Proposed County Ordinances:  BG reported that there has been no public news regarding the proposed oil and gas drilling ordinance.
  2. BLM:  BG reported that Senator Heinrich has introduced a bill in the US Senate that would prohibit mining on BLM lands.  He does not know if the bill will ever become law, but it is hoped that the bill may influence BLM to prohibit or severely restrict mining on the Buffalo Tract.
  3. Hospital Mill Levy:  CD referenced his Forum post about the work session held by the County Commission on July 20 to discuss this matter.   The Commissioners had instructed the County Manager to prepare a resolution calling for a continued tax of 4.25% for an eight year period.  If approved by the Commission at their August 4 meeting, the question will go on the ballot in November.  Significant discussion ensued led by Steve Barro and Mike Neas, who both oppose any continuation of the tax.  Steve had prepared a document detailing his position.  BG suggested that he submit that document to the County Commission and to the press, prior to the CC meeting and that he and Mike attend the CC meeting to express their views.  Steve was also asked to submit his document to the board and it was subsequently posted in the ES-CA forum.  BG responded to questions about ES-CA taking a position of the tax by noting that ES-CA’s role for now is to monitor governmental actions and note if they are in compliance with existing laws, following procedures, including transparency, and endeavor to inform Placitans of the issues.  Before the November vote, ES-CA may want to put this and other issues to a vote in order to raise awareness and understand the opinions of the membership.
  4. Zoning Amendment Request – Placitas Senior Co-housing:  BG reported that the P&Z meeting had been cancelled and this matter will be rescheduled.  BG referenced a poll that was conducted by ES-CA concerning high density zoning and the zone change process.  His opinion is that ES-CA should not take a position concerning this specific application, other than to insure that the process includes interested citizens.  Further, that ES-CA should work with the County to make the zone change process more inclusive and public.
  5. Bernalillo and SC Government Update:  CD referenced prior discussion items and noted that he had no new information from Mayor Torres of Bernalillo.
  6. Oil and Gas Assoc. Educator:  JM referenced the email from Jodilynn Ortiz and noted that this issue will be followed up on at the next meeting.

Upcoming events include:

Candidates Forum:  Scheduled for Saturday, September 10, from 2-4 pm at the Placitas Senior/Community Center.  Six of the eight invited candidates have responded in the affirmative.  We are following up with the remainder of the candidates.

Member Appreciation Day:  This is scheduled for Sunday, October 16, at the Placitas Community Library.

Next Meeting:  The next meeting is scheduled for Monday, September 10, 2016, beginning at 6:30 pm at the Placitas Fire Station, 463 Highway 165.

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Tax Saturation

By Mike Neas- On August 4th the Sandoval County Commissioners will decide if the Hospital Tax Question will again be asked of the voters in the upcoming November election. This is a very important Ballot Question and Public Comment from now to the election should be encouraged. 480 votes swung the other way on the 2008, 4.25 Hospital mil levy and Sandoval County property tax payers would not have committed to paying over 104 million dollars over an eight year period to one public teaching hospital and one private hospital.

The wording in the tax question itself is arguably responsible for the difference in the 2008 vote count. That question confusingly misrepresented the mil levy duration as not less than 4 and not more than 8 years. The difference being a whopping 52 million dollar additional tax burden and the County Management never even considered the four year possibility when it signed the eight year Sandoval County Health Facilities Agreements.

How long should we supplement the operations of both of these hospitals with more than one million dollars a month of the property tax potential? The hospitals are not available to “…all Sandoval County residents.” as recited in each of their Sandoval County Health Facilities Agreements. Presbyterian Hospital accepts only certain insurances, of which my own Blue Cross Blue Shield is not one. And Presbyterian Health Care has no contract with Sandoval County Regional Medical Center. Can we afford to commit another 104 million dollars over the next 8 years while important Bond Issues fail to pass and County infrastructure and our education system are underfunded?

We now have two modern, well-staffed, medical institutions which are major assets in the future of our County. The hospitals are now established and are important aspects of our Sandoval County health and economic future. The taxpayers have made an important and considerable contribution to a much needed cause. But, we cannot afford another eight years and 104 million dollars to two “most favored” tax money recipients. The money must be spread around. Vote “NO” on the Hospital tax question and vote yes on something else that we need.

These hospitals should not be joined at the hip in a single all or nothing Ballot Question. We might also consider supporting only our public teaching hospital with a 2.125 mil tax levy.

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Hospital Tax

The Sandoval County Commission held a work session on Wednesday, July 20th, to discuss the Hospital Tax.  Currently, Sandoval County residents are assessed a mill levy of 4.25% on their property taxes.  This money is then distributed to both Sandoval Regional Medical Center (SRMC) and Presbyterian RUST Hospital (RUST).  Both hospitals are located in Rio Rancho.

Hospital Administrators Jamie Silva-Steele (SRMC) and Angela Ward (RUST) gave a joint presentation to the Commission listing the services provided, economic impact, community involvement and future growth plans of each hospital.  The presentation was similar to the ones presented by each before the ES-CA Board.

Commissioner Walters initially stated that he could support a new mill levy of 4% and Commissioner Dominguez asked what would happen if the mill levy was reduced.  Both administrators stated that any reduction in the mill levy would have a negative impact on the hospitals and could force cuts in services and/or staff.

After further discussion, the Commission directed the County Administrator to prepare a resolution to renew the tax at a rate of 4.25% and for a term of eight (8) years.  The resolution will be discussed and voted upon at the County Commission meeting scheduled for August 4.  If the Commission votes to approve the resolution, the issue will be placed on the November ballot for a vote by the residents of Sandoval County.

All Placitas residents are encouraged to attend this meeting.  Also, please attend the next board meeting on August 1 if you would like to express your thoughts on this matter to the board.

Posted in Current Issues, Property Taxes, Special Announcement | 1 Comment

Heinrich, Udall Introduce Buffalo Tract Protection Act

WASHINGTON, D.C. (July 15, 2016) – U.S. Senators Martin Heinrich (D-N.M.) and Tom Udall (D-N.M.) introduced the Buffalo Tract Protection Act in response to deep concerns from local communities in southern Sandoval County about the negative impacts of a proposed gravel mine in the area. The bill will withdraw four parcels of Bureau of Land Management (BLM) lands, including the Buffalo Tract and the Crest of Montezuma, from any mineral development, including gravel mining. See Bill BuffaloTractHeinrichBill_July2016; see map Placitas Area Map; see ES-CA letter HeinrichLtrReAct_Jul2016

In 2012, the BLM released a draft of the new resource management plan for BLM lands in central New Mexico. In the draft plan, the BLM proposed to open the Buffalo Tract in southern Sandoval County to mineral development, including gravel mining. Since the release of the draft plan, many local residents and stakeholders have expressed deep concerns–including health risks–about a gravel mine on this land. Sandoval County, the Town of Bernalillo, the Merced De Comunidad De San Antonio De Las Huertas, the Pueblo of San Felipe, the Pueblo of Santa Ana, and Placitas residents are all opposed to gravel mining at this location.

“The Crest of Montezuma and the Buffalo Tract have incredible ecosystems and many uses both sacred and utilitarian. Numerous local residents have shared their concerns with me about the future of these lands. Most concerning to them are the ways in which a gravel mine would impact their health, quality of life, water supply, and continued access,” said Sen. Heinrich, a member of the Senate Committee on Energy and Natural Resources.”By withdrawing these areas, New Mexicans can be sure that the land is not developed for mineral resources and their way of life and public health are protected.”
“Withdrawing the Crest of Montezuma and the Buffalo Tract from future mineral development is the right thing to do for the surrounding communities and to preserve the ancestral land of nearby Pueblos,” said Sen. Udall. “I have heard from many people in the area who are very concerned about the impact gravel mining might have on their health and the special way of life in southern Sandoval County. This bill strikes the right balance, and I’m pleased to work with Senator Heinrich and the community to move this legislation forward.”

Heinrich and Udall worked with local stakeholders and the community on finding a solution that will protect public health and the many traditional uses of these public lands. The Buffalo Tract Protection Act has been endorsed by the Town of Bernalillo, Santa Ana Pueblo, San Felipe Pueblo, Eastern Sandoval Citizens Association, Las Placitas Association, Ranchos de Placitas Property Owners Association, and La Mesa Homeowners Association.

In order to protect these communities from the negative impacts of a gravel mine on these public land, the BuffaloTract Protection Act would:
• Permanently withdraw four parcels of BLM lands, including the Buffalo Tract and the Crest of Montezuma, from any mineral development, including gravel mining;
• Maintain the authority of the BLM to sell, lease, or exchange the surface rights to the parcels, and;
• Ensure that if the surface rights are sold, leased, or exchanged, the mineral rights will remain under federal management and will remain withdrawn from development.

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Kinder Morgan Pipeline Fact Sheet

Kinder Morgan Pipeline Fact Sheet Information provided by John McNerney

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Placitas West Oppose High Density Re-Zoning

By Chad Williams. The Sandoval County Planning and Zoning Commission will continue to hear arguments to allow urban size lots within Placitas West.  The request is for a 300% increase in density and against all measures within the Placitas Plan.  Remember, Placitas Plan does allow denser development in specific planned areas, just not within established one acre per lot neighborhoods.  Allowed unchecked, this type of zoning change could affect homes anywhere in Placitas.  If you wish to oppose this from happening, you can begin by signing a petition along with many of your neighbors. Here is a link to the petition https://www.change.org/p/sandoval-county-commission-oppose-master-plan-zone-change-in-placitas-west.

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Buffalo Tract Protection Act

Senator Martin Heinrich plans to introduce the “Buffalo Tract Protection Act” into Congress this year. ES-CA sent a letter of support  HeinrichLtrReAct_Jul2016 for the proposed Bill BuffaloTractHeinrichBill_July2016.

If you want to send your individual letter, you can email it to his aide Abby Lewis at Abby_Lewis@heinrich.senate.gov, or send by regular mail to Hon. Martin Heinrich, United States Senate, 303 Hart Senate, Office Building, Washington, DC 20510. The more letters the better.

The final Rio Puerco Resource Management Plan could come out any day.  The draft published in July 2012, opened the Buffalo Tract and other nearby public lands to gravel mining. Our area already has six gravel mines with four of them being among New Mexico’s thirteen largest. The cumulative negative economic and quality of life impacts, as well as health risks, of these mines on our area cannot be overstated.

Sandoval County passed Resolution 8-6-15.7 on August 6, 2015 “the Board does not support any new sand and gravel mining on the BLM Land Known as the Buffalo Tract…”. An August 2014 blind survey of our membership, 91% Agreed or Strongly Agreed “Never allow any type of mining or extraction (except water) on the property (Buffalo Tract)”. According to Plate 58 published in the 2012 draft RMP, there is a 60 mile aggregate rich (Rio Grande) corridor with an abundance of areas better suited for gravel mining.

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ES-CA Annual Meeting

The Eastern Sandoval Citizens Association held its annual meeting on Saturday, June 25, 2016, at the Anasazi Winery.  Board members attending included, Ed Majka, Bob Gorrell, Susan Fullas, Chris Daul, John McNerney and Lynn Koch.  Elected officials attending were State Representative Jim Smith and Sandoval County Commissioner James Dominguez.  There were approximately 60 residents in attendance.

 

The first speaker was Danita Burns, who is the Albuquerque District Manager for the Bureau of Land Management.  John Brenner, the BLM Field Manager for the Rio Puerco Office, was also in attendance.  Ms. Burns explained how large the BLM land area is in this District and the difficulties in managing the land wherein one half of New Mexico’s population resides.  She stated that technical issues have kept the Resource Management Plan from being issued yet but that she expects it to be issued within the next two months.

 

We will have 30 days in which to submit comments after the RMP is released.  ES-CA and the Las Placitas Association are coordinating notification of residents as soon as the document is released.  It is expected that the RMP will recommend sand and gravel mining in part of the Buffalo Tract and it is important that all residents submit their comments in a timely manner and that we make our position known to all of our elected officials.

 

BLM has stepped up its requirements on reclamation of mining sites by requiring that the companies secure sufficient bonds to cover the costs, should they default.   BLM does receive remuneration from any private company that utilizes BLM land for business operations and they do strive to balance land protection with other uses. 

 

The next speaker was Valerie Espinoza, who is the chairwoman of the NM Public Regulation Commission and the representative for our area of the State.  She provided an overview of what entities the PRC regulates, which includes utility companies, telecommunications and public transportation companies.  She noted that the PRC does not regulate private trucking companies.

 

Ms. Espinoza also discussed pipeline safety and had an inspector from the Pipeline Safety Bureau of the PRC discuss in detail about the pipelines that run through Placitas.  Information on the pipelines is posted in the Forum.

 

Dick Ulmer, chair of the Land Protection Trust discussed sand and gravel mining and how it has a negative effect on homeowners in the area.  He noted that as soon as the LPT was added to the lawsuit against Vulcan, they began settlement talks.  Dick also commented on the new air monitoring station that NMED has installed in Placitas and that NMED has issued violation notices to Vulcan for air violations.

 

ES-CA vice president Bob Gorrell spoke about Sandoval County ordinances and how ES-CA is trying to work with the County to adopt an ordinance that would regulate oil and gas drilling.

 

John McNerney, ES-CA’s director of political and legal affairs spoke about the pipelines in Placitas and his information sheet is posted on the Forum.

 

Chris Daul, ES-CA’s communications director spoke about the hospital tax and what the hospitals and the County are looking for as the tax expires at the end of this year.  Sandoval Regional Medical Center has met with ES-CA and provided information as to their operations and cost.  They have not made a formal request to continue the tax but it is expected that they will ask for a continuation at the present rate of 4.25.  ES-CA will be meeting with RUST Medical Center to discuss this issue as well at the next ES-CA board meeting on July 11.

 

ES-CA has not taken a position on the tax question at this time.  ES-CA has asked SRMC and will ask RUST if they would both make a joint presentation to the Placitas Community early this fall. 

 

ES-CA president Ed Majka closed the meeting by reminding everyone of the important role that residents play in getting our voices heard by the County, the State and the Federal government. 

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Contact Info for BLM and PRC

PRC and BLM contact info

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