Ysleta ISD approves $49 million tax and revenue anticipation note to maintain payroll cash flow

The Ysleta Independent School District board unanimously approved a resolution on June 25 to issue a tax and revenue anticipation note (TRAN) for $49 million to cover near‑term cash needs. Administration told trustees the note will provide funds to meet payroll and other obligations before certain state and other revenues arrive.

Chief Finance and Operations Officer Lindley Cambern told the board the district expects to receive funds imminently and will repay the note by February 2026; she said the expected interest cost on the instrument is roughly $1.2 million. When Trustee Chris Hernandez asked what would happen if the board did not approve the note, Cambern replied directly that the district could not make payroll in August without it: "I can't make payroll in August." The board approved the motion by recorded vote, 7–0.

Why it matters: the TRAN is a short‑term borrowing tool that districts commonly use to manage intra‑year cash timing differences when revenues (in Ysleta’s case, state aid and certain property tax flows) arrive later in the fiscal cycle. Trustees emphasized the extraordinary nature of the request, noting it was the first such loan in at least a decade and that the need reflects depleted fund balance and cash reserves after multiple years of deficits and pandemic‑era budget pressures.

Action details: Trustee Catherine Lucero moved for adoption and the motion was seconded and approved unanimously. The administration said the borrowing and interest cost are reflected in the board’s budget discussions and will be repaid within the fiscal year.

Next steps: administration will execute the TRAN transaction and return to the board as required with any related paperwork and necessary budget amendments.