EL PASO, Texas – (KFOX14/CBS4) — The Ysleta Independent School District is beginning its new fiscal year with spending far outpacing revenue, as trustees prepare to review updated financial numbers and ongoing budget pressures.
A report to the Ysleta ISD Board of Trustees shows the district started the fiscal year with spending exceeding revenue by more than $27 million.
While documents describe that gap as typical early in the fiscal year, it comes as the district faces broader cash flow and budget concerns.
Trustees are scheduled to receive an update Wednesday on the district’s finances after the first month of the new fiscal year.
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The agenda says the gap is tied to expected delays in state payments and because most property tax revenue does not arrive until between December and February.
The update follows other recent financial actions and warnings.
In June, Ysleta ISD adopted a budget with a $12.2 million deficit for the school year.
The district also borrowed an additional $32 million in July to support operations during August, when no state funding is received.
Ysleta ISD now has two short-term loans totaling $62.3 million, a package trustees approved in May.
RELATED: YISD approves remaining $32M loan piece after lender backed out
On July 15, Moody’s Ratings downgraded Ysleta ISD’s credit rating from A2 to Baa1 and assigned a negative outlook.
Moody’s is a credit rating agency that evaluates an organization’s financial strength, and the lower rating could make future borrowing more expensive for the district.
The report also says Ysleta ISD had nearly $158 million invested at the end of July, earning almost $397,000 in interest.
That interest income was down compared with the same time last year because the district had less cash available to invest.
District administrators say they are working to reduce spending, find additional revenue and make operational changes through the district’s financial stabilization plan.
Trustees will consider accepting the July financial statements later today.
Moody’s is also expected to review the district’s financial condition again later this year.
RELATED: YISD approves budget with no immediate job cuts, but staffing questions remain
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