HOUSTON (Oct. 1, 2022) — Harris Health System does not have a dedicated or unallocated cash reserve fund.
Harris Health's cash balance is provided, in large part, by ad valorem (property) taxes that are received December through February each year, when taxes are collected from Harris County property owners. This cash is like a deposit into a checking account that is used to fund the operations of the system throughout the year.
“Days Cash on Hand" is a term used to indicate the amount of operational cash “on hand" to fund the day-to-day operations of the system, including payroll. In addition to observing the required bond covenants, Harris Health has consistently maintained the cash on hand indicator within the range of 150-205 days to support its strong credit rating. This cash position becomes all the more important in light of a projected $430 million loss at the end of the short transition year in September, and the looming $45 million deficit in its fiscal 2023 budget.