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Tuesday, October 8, 2024

Ballot Issue 2Q would increase sales taxes to support Denver Health

Ballot Issue 2Q would increase sales taxes to support Denver Health

Denver Health has been struggling financially since 2022, and its leadership is asking voters in the Nov. 5 election to commit to funding it long-term through Ballot Issue 2Q.

The system lost about $35 million in 2022 and posted a $17 million profit last year, but only after receiving one-time donations. Denver Health projects it will lose $10 million this year.

CEO Donna Lynne attributed most of the shortfall to an increase in uninsured patients needing care and flat funding from the city of Denver. She said that next year, the system projects Denver residents will need about $124 million in care that Denver Health won’t get paid for.

What would 2Q do if passed?

The ballot issue asks voters if they want to commit to raising the sales tax in the city, with the proceeds funding Denver Health. The question would forbid the city from reducing its regular annual funding for the health system if the ballot issue passes.

If voters approve the measure, it would raise the sales tax by 0.34 percentage points, adding 34 cents to the cost of a $100 purchase. Denver’s effective sales tax rate would increase from 8.81% to 9.15%, though the rate could rise more if voters also approve Ballot Issue 2R, a proposed dedicated tax for affordable housing initiatives.

The campaign in favor of 2Q estimated it would raise about $70 million annually for Denver Health.

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