EL PASO, Texas – (KFOX14\/CBS4) \u2014 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.<\/p>\n
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. <\/p>\n
While documents describe that gap as typical early in the fiscal year, it comes as the district faces broader cash flow and budget concerns.<\/p>\n
Trustees are scheduled to receive an update later today on the district\u2019s finances after the first month of the new fiscal year.<\/p>\n
FULL AGENDA ITEM<\/p>\n
financialupdatePDF previewPreview PDF<\/p>\n
View PDF<\/a><\/p>\n 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.<\/p>\n The update follows other recent financial actions and warnings. <\/p>\n In June, Ysleta ISD adopted a budget with a $12.2 million deficit for the school year. <\/p>\n The district also borrowed an additional $32 million in July to support operations during August, when no state funding is received. <\/p>\n Ysleta ISD now has two short-term loans totaling $62.3 million, a package trustees approved in May.<\/p>\n RELATED: YISD approves remaining $32M loan piece after lender backed out<\/a><\/p>\n On July 15, Moody\u2019s Ratings downgraded Ysleta ISD\u2019s credit rating from A2 to Baa1 and assigned a negative outlook.<\/p>\n Moody\u2019s is a credit rating agency that evaluates an organization\u2019s financial strength, and the lower rating could make future borrowing more expensive for the district.<\/p>\n The report also says Ysleta ISD had nearly $158 million invested at the end of July, earning almost $397,000 in interest. <\/p>\n That interest income was down compared with the same time last year because the district had less cash available to invest.<\/p>\n District administrators say they are working to reduce spending, find additional revenue and make operational changes through the district\u2019s financial stabilization plan.<\/p>\n Trustees will consider accepting the July financial statements later today. <\/p>\n Moody\u2019s is also expected to review the district\u2019s financial condition again later this year.<\/p>\n RELATED: YISD approves budget with no immediate job cuts, but staffing questions remain<\/a><\/p>\n