Study: Med school would add 15,000 jobs

AUSTIN (KXAN) - The proposed property tax increase to help pay for a teaching hospital in Austin would be offset by some 15,000 new jobs and a $2 billion annual boost to the local economy, state Sen. Kirk Watson and other backers of the project said Thursday.

The figures came from an economic impact report prepared for HealthyAtx.org, an advocacy organization that is supporting the Nov. 6 ballot initiative to boost the Travis County Central Health property tax rate by 5 cents for each $100 of assessed property value.

The increase would add $100 to a piece of property under Central Health's jurisdiction valued at $200,000, assuming no exemptions were in place on that property.

Watson, along with several community and academic leaders rolled out the figures during a morning news conference. Watson has championed the establishment of a local medical school for the past year.

"Everywhere I go people are craving better health care," the Austin Democrat said. "They know for complicated illnesses like cancer too many people are having to go elsewhere for treatment."

More than half the 15,000 projected jobs would not require a four-year college degree.

That is music to the ears of Susan McDowell, director of LifeWorks, which helps young adults at risk.

"The youth we're talking about don't need cool summer jobs," she said. "They need a means to enter the work place in a significant and sustainable manner."

That also pleases Ashton Cumberbatch with the African-American Chamber of Commerce.

"We have a need for jobs at all skill levels in our community.," he said. "This initiative is great news."

Watson  predicted that voters would embrace the proposal if they were made aware of the benefits.

"I believe Travis County voters should be given the opportunity to support a medical school, a new teaching hospital, health clinics across our community, prevention and wellness programs, primary and specialty care services, behavioral and mental health care, and efforts to obtain matching federal health care funds by voting to raise Central Health’s tax rate by 5 cents,"  he said.

Central Health's current tax rate is nearly 7.9 cents per $100 of property value.

The economic study also points out that the federal government would put up $1.46 for each local dollar allocated to the project. The University of Texas system has also pledged $25 million to the project.

"That's money you already paid to the federal government," Watson said. "We ought to be getting it back for healthcare right here in Central Texas."

Watson chairs the HealthyAtx board. Other members include:

• Charles Barnett, Seton Healthcare Family
• David Huffstutler, St. David’s HealthCare
• Clarke Heidrick, Austin Chamber of Commerce
• Jeff Garvey, Austin Community Foundation
• Doug Ulman, Lance Armstrong Foundation
• Sam Biscoe, Travis County
• Tom McHorse M.D., Travis County Medical Society