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 early resignation notices by 5 p.m. April 7. Solis said 54 notices had been received as of March 19, with estimated up-front cost of about $138,000 and projected personnel savings near $3.9 million to date.

Resident Philip Lane, who addressed the board during open forum, warned of the financial risks of the district’s self-insured health plan and urged consideration of a fully insured option. “Because you’re self-insured, I think that’s putting you at a very high risk of financial catastrophe,” Lane said, citing per‑enrollee exposure if claims exceed expectations.

Solis and other staff also summarized legislative proposals that could affect the district’s revenue and costs. House and Senate funding bills under consideration would increase some yields and compress tax rates; one House bill (HB 2) includes an increase to the basic allotment that, under the district’s estimates, could generate about $13 million if enacted. Solis cautioned that language and appropriations could change in conference committee and that the numbers presented were preliminary.

Enrollment and revenue assumptions factored into the preliminary budget include a projected decline of about 770 students for the coming year and an estimated 10% increase in local property values based on preliminary trends. Solis said the district is planning for both the enrollment decline and the inverse relationship between property values and state aid.

Administration also described preparatory steps for a potential voter approval tax rate (VATER) election on Nov. 4, 2025, including beginning the process to solicit an efficiency auditor now so a required audit could be completed in time should the board elect to move forward. Staff said a successful VATER could yield up to an estimated $28 million in additional annual revenue, but emphasized that board approval would be required before a ballot is ordered.

Votes at a glance

- Reclassification of Purchase Order 9402500255 (Viber World Sports LTD) from general fund to bond fund for Socorro High School track refurbishment, $733,855 — motion to approve by Ms. Macias, second Ms. Gardea; outcome: approved. - Authorization to initiate solicitation for sale of two vacant district lots (14400 GR Campesano Drive and 14900 Tierra Mirage Avenue) — motions and seconds recorded; outcomes: approved to begin solicitation process for both parcels. - Approval to create a bilingual facilitator position — motion by Ms. Gardea, second Ms. Macias; outcome: approved. - Appointment of Selena Stiles as chief human resources officer — motion by Ms. Macias, second Ms. Gardea; outcome: approved.

Why it matters

The district presented these options as part of efforts to stabilize finances before budget adoption in June. Short-term borrowing and asset sales provide temporary relief, while a VATER would seek more permanent local revenue — a politically sensitive step that the board would have to approve before any ballot measure.

What’s next

Staff expect to circulate a term sheet for the revenue note by April 7, and they proposed a special board meeting during the week of April 29 to consider authorizing issuance. The deadline for ordering a VATER, if the board chooses that route, would fall in August under the timeline staff provided.

Solis and other administrators said further updates will be provided as legislative language and certified property values are finalized and as staff bring back results of the central appraisal district meeting scheduled for April 4.