EL PASO, Texas – (KFOX14/CBS4) — El Paso Independent School District trustees are set to get a close look at the district’s day-to-day cash flow, as documents show available cash could tighten significantly later this month.
The cash-flow concerns come after the district earlier this year projected a $52.8 million deficit, declared financial exigency and made major cuts that reduced the shortfall to about $4.3 million.
RELATED: EPISD audit: Report blames former CFO for financial failures leading to $52.8M deficit
Agenda materials show the district’s cash balance could fall to about $5.9 million by Sept. 25.
The presentation indicates that could trigger a freeze on transactions until Sept. 28, when a major state payment would be expected.
How much money arrives that day depends on which payment schedule the district is assigned.
Under one option, the district would receive about $47 million on that payment date.
Under the other, it would receive nearly $68 million — a difference of about $21 million available that day.
The presentation notes total state funding would still be the same over the year, but the timing of payments could determine whether there is enough cash on hand when bills come due.
The presentation emphasizes the current issue is not a new deficit, but a cash-flow problem.
The documents show the district is starting this month with about $32 million in cash.
By Sept. 25, after regular payments such as payroll and other obligations, the balance is projected to drop to about $5.9 million.
Trustees are scheduled to discuss the cash-flow overview at a meeting later this morning.
RELATED: EPISD says budget deficit reduced to $4.3 million after financial cuts
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