EL PASO, TEXAS (KFOX14/CBS4) — Teachers and central office administrators in the Ysleta Independent School District are being offered a $7,500 incentive to resign or retire as the district works to address a multimillion-dollar budget deficit.

KFOX14/CBS4 confirmed the district is offering the incentive for eligible employees to submit a letter of resignation or retirement.

In a statement to KFOX14/CBS4, a YISD spokesperson said, “The current deadline for teachers and Central Office administrators to submit their letter of resignation or retirement in order to qualify for the $7,500 incentive is Oct. 9.”

According to El Paso Matters, an email was sent out to administrators earlier this month notifying them that YISD is offering to buy out the first 100 teachers or administrators who submit an early notice of their plan to retire or resign in December.

The resignation would be effective at the end of the spring semester, and the incentive payment would be distributed in January 2027, according to El Paso Matters.

While this is not the first time the district has offered an incentive, it offered a similar $7,500 separation incentive earlier this year for teachers who planned to resign or retire over the summer.

According to El Paso Matters, more than 220 teachers left the district at the end of the 2025-26 school year with that incentive.

Meanwhile, the most recent incentive comes as the district faces a multimillion-dollar deficit.

In June, YISD projected a deficit of about $12.2 million for the next school year when it adopted a $482.6 million budget.

At that time, Trustee Chris Hernandez voted against the budget, arguing the district should be more transparent about possible future job cuts.

“There will be a reduction in force this March. Administration has to know who these folks are going to be. And it is those right, of any employee that knows, that the administration knows is on the chopping block, should be notified,” Hernandez said.

Superintendent Dr. Xavier De La Torre also said in June he wants to give employees more time before making any reduction-in-force decisions, even if that means returning in March with a recommendation to cut positions.

“I may be back here in March telling people that we’re going to have to reduce the force, but I would rather spend every dime in that fund to make sure that everybody that’s currently employed, that left the school district believing that they were employed at the end of May to come back and start the school year,” De La Torre said.

This all comes after an internal audit KFOX14/CBS4 previously obtained warned YISD could run into serious trouble with its general fund within one to two years if no major changes are made. The report points to declining revenues, continued enrollment losses, a multi-million-dollar deficit in the district’s health plan fund, and a shrinking fund balance.

According to the audit, the unassigned general fund balance dropped from about $79 million in 2021 to a projected $18.8 million in 2026.

When asked about the audit in June, De La Torre said it does not change his decision to hold off on a reduction in force for now.

“It doesn’t make a difference. Not one bit of difference. I’ll tell you why. All of the teachers have signed contracts. They signed contracts back in March and April. So even if they close and consolidate schools, what makes a school or the faculty and staff in that school, and I still have to pay it? Because I’m going to honor that contract. I’m not going to file for financial exigency until I have to,” De La Torre said.

The district said staff must make a decision by Oct. 9 to qualify for the incentive.

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