Socorro ISD CFO reports $19M estimated general fund reduction, $35M loan and health fund shortfall to board

Socorro ISD Chief Financial Officer David Solis presented the district’s quarterly financial update for the period ending June 30, telling the board on Aug. 20 that the general fund expenditures exceeded revenues by $26.7 million as of that date but that after final year‑end entries the district expects a net reduction in fund balance of approximately $19 million.

Solis said the district closed a $35 million loan in June to help cover cash obligations that arise before state aid funding is received. He reported investments grew from about $140.7 million to $159.9 million during the month and that the debt service fund included a partial defeasance of Series 2017B in the amount of $10.6 million performed in June.

Solis flagged an $11.1 million deficit in the district’s health fund and said administration anticipates transferring roughly $12 million from the general fund when the fiscal year is fully closed; the print shop and workers’ compensation funds also showed smaller deficits for which transfers or rate adjustments are planned. He said the general fund ended the quarter with a balance of approximately $61.8 million, largely because of the $35 million loan recorded in June.

Board members asked for additional detail on health fund revenue and expenditures; Solis said revenue was down about $2 million year over year and expenditures were about $11.5 million higher than the same time last year. Solis said the district will continue to provide monthly updates and quarterly presentations to keep the board informed about the financial position.