Commissioners ask state to double local provider participation fund admin cap

The Tom Green County Commissioners Court on Tuesday adopted a resolution asking the Texas Legislature to raise the statutory administrative expense limit for the Local Provider Participation Fund (LPPF) from $20,000 to $40,000.

County staff explained the LPPF is a pass-through account for funds tied to Shannon hospital and that the county does not expend general-fund dollars on it. "We're only allowed, 20,000," the county official said while describing the statutory cap and the proposal to seek a higher limit to cover administrative duties. The court passed the resolution unanimously.

The presenter said Shannon has provided letters of support and has verbally committed to pay the additional amount for FY27 if the change becomes effective. Staff noted the county has seen the LPPF grow from initial collections into the millions and that a modest administrative increase would remain below typical pass-through admin fees elsewhere in the IRS/industry averages. If legislators file a bill, staff expects to return with the bill number and a second resolution identifying that statutory change.