El Paso ISD shares financial stabilization plan amid $52 million budget shortfall

EL PASO, Texas (KVIA) -- The El Paso Independent School District shared an update on its financial status Tuesday at its Board of Trustees meeting. Officials said the district faces a "financial shortfall" tied to rising costs, less enrollment-related funding, inflation, state funding changes and previous budget projections.

The update comes as a public school consultant recommended EPISD declare financial exigency, which is similar to bankruptcy for educational institutions.

Officials also noted part of the struggle comes from weak financial systems, internal controls and operational processes. EPISD said it's reviewing and strengthening those elements to stabilize the district.

Right now, the district estimated a funding gap of $52 million for the current year, including a $6 million deficit from the 2025-26 budget, the district said.

During Tuesday's meeting, district leaders listed immediate and long-term strategies to improve EPISD's financial standing. Some include:

• Operational efficiencies
• Restructuring central office
• Cost containment efforts
• Multi-year financial planning

EPISD said it's also working with an external and internal auditor to review and develop a recovery plan.

Superintendent Brian Lusk said the district's goal is to "introduce controls and processes that have been lacking in order to build a stronger and more sustainable financial foundation."

The district is also looking for interin financial leadership since its chief financial officer resigned May 7.