Sales tax increase to save HCMC a nonstarter for many Republicans in tied Minnesota House
Both sides of the aisle in Minnesota agree the collapse of HCMC would be catastrophic. However, they do not agree on the prescription to save it.
At a Minnesota House committee hearing on Tuesday, the DFL pitched increasing Hennepin County's 7.5% sales tax by 0.75%. The plan would raise more than $250 million for the critical trauma hospital, HCMC.
Republicans are not on board.
"Right now, there is no appetite for a tax increase. People can not afford it; people are barely struggling to stay in their homes with an 8% property tax increase this year on top of a 5.5% property tax increase last year. It's really a struggle we cannot put this on property taxpayers," xx said.
But DFL Rep. Esther Agjabe is optimistic.
"I believe we will come together on some type of solution for HCMC before the end of the session," she said.
The newly appointed Hennepin Healthcare CEO insists he, too, is optimistic, but admits, right now, he is just trying to keep staff from leaving.
One doctor estimates 30% of personnel have or are planning to depart.
"We are seeing higher attrition rates than normal in the organization, and my role is to try and stabilize that staff," xx said.
Hospital leaders told state lawmakers earlier this year that there is a projected operating loss of $40 million to $50 million for this fiscal year. The change, state officials estimate, could bring in $337 million in extra funding per year.
Last week, the Minnesota Senate passed $150 million in funding for HCMC, but it still needs approval from the House. The Minnesota House is currently tied and a tax increase appears to be a nonstarter for many Republicans.
The legislative session is set to end on May 18.