Socorro Independent School District officials on Wednesday presented an efficiency audit required ahead of a proposed increase in the district’s maintenance and operations (M&O) tax rate and a planned November voter-approval election. The audit, prepared under Legislative Budget Board guidelines, found the district’s fund balance declining, payroll representing the largest share of spending, and operating revenue per student below peer and state averages.

Chief Financial Officer David Solis introduced the audit and said the full report and presentation are posted on the district’s financial transparency webpages. Dr. Jody Durán of Moak Casey, who presented the findings, said the district is proposing to add three “golden pennies” and nine “copper pennies,” a 12-cent increase that would raise the M&O rate to 0.7889 and is projected to generate about $49.2 million in the first year.

The audit is intended to give voters factual context before an M&O rate that exceeds the voter-approved level is adopted. Durán emphasized the report “is to provide information to voters regarding a school district’s fiscal management, efficiency and utilization of resources” and that the audit reports data rather than issuing prescriptive recommendations.

Among the audit’s data points: the district’s operating revenue per pupil was reported at about $9,321 while operating expenditures per pupil were higher (the presentation used the most current 2023–24 data available to the auditors). Payroll is the largest single expenditure, representing roughly 87.5% of operating expenses as presented, and the district’s unassigned fund balance had been drawn down; presenters said the unassigned balance was shown at about $46 million versus a 3-month-rule target of roughly $120 million.

The report compared Socorro ISD to selected peer districts and found the district’s accountability rating and attendance rate at or slightly above peers, while revenue per student lagged. Teacher turnover was reported at 11.1 percent — a comparatively low turnover rate in the presenter’s experience.

Board members and conservators praised the transparency of posting the audit and encouraged public review. Trustee Woodcraft urged the community to read the report and submit questions. Conservator Dr. Hinojosa and another conservator said the district has made notable progress over the past year but stressed continued fiscal discipline, particularly around payroll and health-care costs, and urged the board to be transparent about how any new tax revenue would be used.

The district intends to use any additional revenue from a passed election for teacher support and staff compensation, to maintain class sizes and to strengthen student services, according to the presentation. The auditor noted that the audit follows Legislative Budget Board guidance and relies on the most recent complete datasets available at the time of the report.

Because this presentation was a public hearing rather than an action item, the board did not vote on the audit itself during the session. The district will post the audit at least 30 days before the election as required.

Ending: The audit will remain on the district finance website and the board signaled it plans continued monitoring of spending and enrollment as it moves toward a Voter-Approval Tax Rate (VATR/VADER) election this November.