Texas town withholds payments to UT Rio Grande Valley School of Medicine

The city of McAllen, Texas, is withholding payments promised to Edinburg-based University of Texas Rio Grande Valley School of Medicine, according to The Brownsville Herald

McAllen was one of four cities, plus the local county, to sign a memorandum of understanding in 2014 to provide $50 million in support over a decade to the new medical school, which opened in 2016. McAllen pledged to provide up to $2 million per year, according to The Brownsville Herald. In 2014, it paid the school $2 million, but has not made a payment since. 

A city commissioners' meeting indicated McAllen is waiting to funnel more funds into the school until it begins to operate part of its campus there. 

"We have dropping in sales tax revenue, the violence in Mexico, the peso devaluation — our economy is tight. Homeowners in McAllen are on tight budgets right now. If it [our contribution] made a difference, maybe. But if it's not gonna make a difference, why should we waste the money," said Commissioner John Ingram, according to the report.  

Read the full story here.  

 

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