EL PASO, TEXAS (KFOX14/CBS4) — The El Paso Independent School District leaders revealed a $52 million budget shortfall on Tuesday, as a public school consultant is recommending that the district declare a financial emergency that could impact students and staff.
During EPISD’s Board of Trustees meeting on Tuesday, district officials were presented with the school system’s current financial status, which included a $52.8 million budget shortfall leaving the district with about 38 days left in its fund balance, described as the district’s “piggy bank.”
Next school year is projected to be even worse, with a $42 million deficit and fewer than 12 days of savings.
Deputy Superintendent and interim CFO David Bates said district leadership did not learn the true extent of the deficit until early May from former CFO Martha Aguirre. Officials said Aguirre resigned just days later.
Officials cited declining enrollment and declining attendance as key issues contributing to the loss of revenue. They also highlighted that Texas is one of only a few states that pays schools based on attendance rather than enrollment.
The presentation by a third-party public school consultant outlined possible next steps that include notifying the Texas Education Agency of the district’s financial crisis, setting a reduction target for next school year, working with district leadership with the help of third-party companies to identify savings, freezing unnecessary spending and implementing strict hiring controls across all departments.
The EPISD school board has until June 30 to formally adopt a budget.
Norma De La Rosa, president of the El Paso Teachers Association, said the past two weeks have had a significant impact across the district.
“Events that have taken place the last two weeks, there are really no words to express the impact this has had on the community, the employees, and the students,” De La Rosa said.
She added, “What has happened with the finances of this district didn’t just happen yesterday, last month, even last year. This has been in the works going back as far as least two past superintendents.”
Jenny Solo, identified as an EPISD parent and community member, called for oversight and accountability.
“We are talking about hundreds of millions of dollars in our children’s future. There should have been oversight. There should have been accountability and investigations and cover fraud, concealment, misconduct, financial wrongdoing,” Solo said.
Trustees also pressed for answers about responsibility. EPISD Trustee Mindy Sutton asked, “What kind of accountability is there? Was it negligence, was it personnel…?”
Bates responded, “Short answer, yes.” Sutton also asked, “How do we keep this from happening again?”
Chief Internal Auditor Myra Martinez responded, “….Corrective Action Plans…”
District leaders said difficult cuts and major changes are ahead as they try to keep the financial situation from worsening.
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