What happened: The Midland County Hospital District (Midland Memorial Hospital) budgeted $451.6 million in expenditures for fiscal year 2025-26. The Board of Trustees will consider the budget and accompanying tax rate on first reading on Sept. 23, with a second reading on Sept. 25.

Why it matters: The plan lowers the property tax rate slightly. After higher home appraisals, the average homeowner’s bill will be about 2.5% lower.

Go deeper: Labor remains the biggest pressure. Salaries and benefits rise by about 5.2% year over year. The district offsets part of that by cutting contract labor by 10.6%, holding most other categories close to last year’s levels.

Key points:

  • Taxes and revenue: The hospital budgets $458.4 million in total revenue, representing a $9.5 million increase from last year. The majority comes from patient services, $311.9 million, up $11.4 million from last year. On the non-operating side, property tax collection totals $49.4 million, up approximately $2.4 million from last year. They also expect to collect $37.7 million from sales tax, up about $0.4 million from last year.
  • Spending: The hospital anticipates $451.6 million in total expenditures, an increase of $13.4 million from last year. Salaries, wages, and benefits account for $191.7 million, an increase of $9.4 million, while other operating costs total $187.9 million, an increase of $1.8 million.

Beyond operations, $43.2 million covers capital financing (depreciation and interest), an increase of $1.6 million, and $28.8 million subsidizes the hospital’s physician network, an increase of $0.7 million.