Socorro ISD projects $8.5 million shortfall, advances planning for short-term loan and potential voter tax measure

The Socorro Independent School District board on Wednesday received a budget and legislative update showing a preliminary $8.5 million general-fund deficit for fiscal 2025–26 and approved administrative steps to prepare for short-term borrowing and a possible voter approval tax-rate election.

The district’s chief financial officer, David Solis, said that after preliminary staffing reductions the operating deficit was expected to be reduced from about $16.9 million to roughly $1.5 million, but a planned $7 million transfer to the health fund leaves a projected $8.5 million gap.

Solis said the district will seek a short-term tax revenue note to cover August payroll and other obligations in a month when state funding is not received. “Our goal is to distribute the term sheet to prospective bidders by April 7,” Solis said, and administration is targeting delivery of funds in May so proceeds are on hand before the anticipated August need. He told the board the anticipated note amount is approximately $35,000,000.

The board was also briefed on a separation incentive approved March 6 that offers $2,500 to the first 100 eligible employees who submit…