EL PASO, Texas (KFOX14\/CBS4) \u2014 El Paso Independent School District officials say the district may need to borrow money next spring to cover a temporary cash shortfall, with projections showing its cash balance could drop below zero in May and fall to about $40 million below zero in June.<\/p>\n
During a board trustee briefing, district officials said the situation is a cash-flow issue separate from the district\u2019s budget and fund balance.<\/p>\n
They also said the projection could change as actual revenue and expenses come in.<\/p>\n
EPISD said the timing of state payments is a major factor.<\/p>\n
Julia Spencer reports on El Paso ISD may borrow money next spring to cover temporary cash shortfall (Credit: KFOX14)<\/p>\n<\/p>\n
RECOMMENDED: State Rep. calls governor\u2019s El Paso ISD finance investigation politically motivated<\/a><\/p>\n The district is in Payment Class Two, meaning it receives less state funding during some months and then larger payments after the school year ends. <\/p>\n Deputy Superintendent David Bates said, \u201cInstead of getting a steady stream of money each month, we will get the bulk upfront, then we won’t get hardly any in the middle.\u201d<\/p>\n Trustee Brian Kelley said borrowing would add costs. <\/p>\n \u201cWe are going to have to spend more money, because we are going to have to borrow money in order to cover these shortfalls at a cost,\u201d Kelley said.<\/p>\n Officials said a short-term loan may be needed around June, though they are still working out how much to borrow. <\/p>\n Board Vice President Jack Loveridge pointed to the projected low point, saying, \u201cInstead of the June ending balance, I see the most severe is about 40 million.\u201d<\/p>\n The district said the loan size will depend on how much it saves over the next few months and whether it receives additional funding before then.<\/p>\n