El Paso Schools Face Budget Shortfalls Due to State Funding Errors

El Paso school districts are preparing for significant budget shortfalls in the upcoming school year following state miscalculations related to tax revenue losses. Voters approved increased tax breaks for homeowners in November 2025, which were supposed to be offset by state funding, but the Texas Education Agency (TEA) has revised its funding formula, leading to expected losses of $17 million for EPISD, over $10 million for YISD, and about $18 million for SISD. District leaders are attempting to manage these cuts without layoffs or school closures, though concerns remain about covering salaries. The situation is exacerbated by declining student enrollment, which could further impact funding. Schools are urged to carefully evaluate expenses to maintain educational quality amidst these financial challenges.

Key Details: • EPISD expects a $10 million budget deficit despite previous cuts. • YISD's deficit could rise to $22 million if expenses aren't reduced. • Enrollment is projected to drop by 1,500 students over the summer. • School principals must now seek additional approval for campus purchases.