Ysleta ISD facing $16.7 million budget deficit

EL PASO, Texas (KVIA) -- The Ysleta Independent School District is facing a budget deficit of $16.7 million. The district discussed its quarterly report during their Board of Trustee meeting Wednesday.

The district said there was an issue with a software system across the state with certain Central Appraisal Districts. The state implemented a new methodology to calculate any losses that happened from that error.

It impacted many districts across the state including YISD, and left it with a loss of $11 million in state revenue and a budget deficit of $16.7 million.

The state also has a decrease in funding given to districts and it leaves YISD with cash flow challenges. It said they need a short-term loan this month.

District CFO Lynly Cambern said the district has an issue of spending it's unassigned fund balance. As of now, they have $35 million in unassigned fund balance, but it's been getting lower over the past 5 years.

Cambern said the district has been using that fund balance to help get the deficit down, when it should be used for other issues. This year, if they use the fund balance for their deficit, they'll only be left with $13 million.

"My goal in June is to bring you a comprehensive plan for addressing fund balance, for making hard choices, so that in three years, you are back to a surplus in your fund balance," said Cambern during the meeting.

Hard choices can mean a lot of things, but Superintendent Xavier De La Torre said layoffs are premature to talk about right now.

"It's too early to run around and say that the sky is falling," said De La Torre. "We still have opportunities to gain revenue and significantly cut expenditures." 

De La Torre said that's the plan and options will be exhausted before the budget needs to be finalized this upcoming June.