Socorro ISD request a $25.1 million loan to help pay employees

EL PASO, Texas (KVIA) In a special meeting held Thursday evening, Socorro Independent School District (SISD) went before the board of trustees to request a Tax and Revenue Anticipation Note.

Michael Hinojosa, Texas Education Agency conservator for SISD says this short term loan will help the district because their expenditures has exceeded their revenue.

Hinojosa said non hourly employees were paid once a month but as an added benefit the district decided to pay those employees twice a month to help them around the holidays. By law the district is required to have cash on hand to cover payroll.

The district will not receive state funding until January so this loan will bridge the gap until more funding is available.

"This is not completely unusual. This happens in a lot of districts. It has not happened in Socorro for over 20 years. But thank goodness. Our staff and working with Andrew Kim and working with the board anticipated this back when we adopted the budget," Hinojosa said.

According the Hinojosa the loan will be paid back to the bank with interest no later than February 2025.