El Paso ISD faces multi-million dollar deficit: District recommends salary freeze

The El Paso Independent School District is facing a budget deficit in the coming fiscal year 2016.The district reviewed its finances before the Board of Managers at a special meeting Tuesday.

Currently both the Texas House and Senate are working on the state’s education bill, which means school districts statewide still don’t know their exact funding just yet. But EPISD’s financial department gave an estimate as to where the district stands.

The first estimate finds EPISD will receive about $462 million in revenue, but about $474 million in expenses, leading to a deficit of nearly $12 million. This is the estimate recommended by the district. The district also recommends a salary freeze.

The other two estimate higher expenses, at $481 million and $487 million, due to increased payroll costs, supplies and materials and capital outlay. These would lead to either an $18 million or $25 million deficit.

Additional factors impacting the budget include debt from fiscal year 2015, $9.8 million; a loss of 900 students and $3.9 million in state funding; a loss of healthcare TRS funding due to legislative action, $3.6 million; cost of living increases, a 2 percent increase, costing $7.2 million; in addition to transportation, technology and book replacements.

Both chambers of the Texas Legislature are working on bills that would earmark additional funding for school districts. Session ends June 1, 2015.