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Harborview hospital tax to help with near $900M project budget gap

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(The Center Square) – A recently-approved tax levy will solely fund King County’s publicly owned hospital, which is already facing significant budget issues.

The King County Council approved a property tax of 10 cents per $1,000 of assessed value to fund Harborview Medical Center’s operations, maintenance and capital expansion. That is more than King County Executive Dow Constantine’s original levy proposal with a rate of 8.5 cents per $1,000 of assessed value.

The recently-approved levy will cost the average King County homeowner about $85 per year and is expected to generate $87 million per year.

The Harborview Medical Center is located in Seattle’s First Hill neighborhood and contains 540 beds. King County owns the facility, but the University of Washington Medicine controls operations.

The hospital serves a vital role in the region as it is the only Level 1 trauma center in the state of Washington. According to the county, the facility serves trauma patients from Alaska, Idaho, Montana, Wyoming and Washington.

In November 2020, King County voters approved issuing up to $1.74 billion in phased bond funding over 20 years for health and safety improvements at the Harborview Medical Center campus. However, costs continued to outweigh revenue for the project.

A cost study from the Vanir team in early 2023 identified an estimated $900 million gap between anticipated revenues and the updated cost of the Harborview Bond Program. That funding gap was updated from $900 million to $888 million in March 2023.

“The county is reviewing cost estimates for projects not funded within last year’s revised scope and is currently in the planning process,” King County Executive Press Secretary Amy Enbysk told The Center Square in an email. “Revenue generated from the county hospital levy could help fund these projects and/or higher than anticipated project costs.”

The Center Square previously reported on Constantine’s original proposal aiming to preserve access to clinical public health services by tying them to Harborview Medical Center. The generated revenue would have sent $25 million to public health clinics across King County and eliminate the need for them to be covered by the county’s general fund.

However, the legislation does not mention funding for the public health clinics. Harborview officials expressed concern over the original bill and previously told The Center Square that it would divert funding intended for Harborview to public health clinics.

The levy was approved by the King County Council on Dec. 10. King County Councilmembers Reagan Dunn, Pete von Reichbauer and Dave Upthegrove voted in opposition of the tax.

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