As the El Paso Independent School District works to address a massive budget shortfall, district leaders are proposing additional cost-saving measures that could affect employee benefits and compensation.
El Paso ISD is considering changes to employee benefits and stipends as part of an effort to save money, including higher health plan premiums and reductions to health savings account contributions.
During a recent Board of Trustees meeting, trustees received a presentation outlining several recommendations aimed at helping stabilize the district’s finances. The proposals come as EPISD faces a projected $52.8 million budget deficit and has declared a financial exigency, allowing district leaders to pursue significant budget reductions.
Among the proposed changes is a restructuring of the district’s health insurance plan.
District officials are recommending increased employee premiums and a reduction in Health Savings Account (HSA) contributions.
Under the proposal, the district’s annual HSA contribution would decrease from $1,000 to $500 beginning in 2027 and would eventually be phased out entirely.
According to district estimates, the health plan adjustments could generate approximately $1.3 million in savings next year.
EPISD is also reviewing employee stipends to identify opportunities for reductions or eliminations while remaining competitive with surrounding school districts.
Officials estimate those changes could save an additional $1.5 million.
The proposed savings measures are part of a broader effort to close the district’s budget gap. District leaders have previously cited declining enrollment, lower attendance-based funding, and rising expenditures as major factors contributing to the financial crisis.
Trustees are expected to continue reviewing budget-cutting options as the district works toward adopting a balanced budget and restoring long-term financial stability.
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