El Paso ISD Faces $52.8 Million Deficit, May Implement Major Layoffs

The El Paso Independent School District (EPISD) is confronting a staggering budget deficit of $52.8 million for the 2025-26 school year, prompting recommendations from a consulting firm to declare financial exigency. This situation arose from significant overspending and systemic financial tracking issues, leading to potential mass layoffs and a drastic reduction in the district's reserves. The budget, originally projected to have a $6 million deficit, was mismanaged under former Superintendent Diana Sayavedra, who resigned amid the crisis. Without immediate corrective actions, EPISD risks depleting its savings and failing to meet Texas financial integrity standards, which could jeopardize its accreditation.

Key Details: • EPISD's budget deficit increased from an expected $38.7 million to $52.8 million. • The district's unassigned fund balance could drop from $101 million to $60 million, enough for only 38 days of operation. • A financial stabilization plan is recommended within the next 90 days to address overspending. • Employee salaries account for 87% of EPISD's operating expenses, limiting cost-cutting options.