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EPISD forecasts multimillion‑dollar shortfall under HB2; public and trustees demand itemized budget, question Lamar reopening
Summary
At a board workshop the El Paso Independent School District reviewed a fiscal forecast showing a projected FY26 deficit under House Bill 2 and a projected FY25 ending fund balance of about 66.5 days; speakers pressed administrators for an itemized budget and criticized the $3.2 million annual cost to reopen Lamar Elementary.
The El Paso Independent School District Board of Trustees convened a budget workshop to review the district's updated fiscal‑year 2025 forecast and the developing FY2026 budget, including the estimated impact of House Bill 2. District comptroller Maria Alonso said the district projects total general fund revenues of about $515.1 million for FY25, projected expenses of about $555.8 million, and other sources of $18,585,313 (largely property sales). Chief Financial Officer Martha Giren said the district currently projects an ending unassigned fund balance of $119.6 million, equal to about 66.51 days of reserve.
The nut of the meeting centered on prospects for FY26. Alonso and other administrators presented a proposed FY26 budget that incorporates state HB2 funding for teacher compensation but still shows a projected deficit of $11,700,000 if the draft proposal is adopted (the presentation described that deficit as the equivalent of 7.82 days of fund balance if taken as written). The draft budget includes district proposals tied to the new law and local policy decisions that trustees and members of the public said must be explained in greater detail.
Public commenters pressed the board on several items. Parent and taxpayer Jenny Solo said the district faces a possible 7.3 days of reserves under one HB2 model and asked why the board approved $3.2 million a year to reopen Lamar Elementary when classroom programs and services are being cut; Solo also said reopening Lamar would cost “$17,000 per student,” a figure she cited during public comment. Minerva Torres Shelton, identified as a taxpayer, asked plainly, "What is the plan?" and said taxpayers deserve specifics about how the district will protect teachers, students and programs. Multiple speakers, including Sherry Ryder and Ross Moore, urged transparency and an itemized accounting of expenditures.
Administrators described the components behind the FY25 forecast. Maria Alonso said the FY25 forecast reflects year‑to‑date actuals through April plus projected May–August payments; it shows transfers out that include a $4.2 million one‑time contribution from the general fund to the health care fund and required transfers for maintenance tax note sinking funds. Treasurer Walt Byers outlined cash‑flow patterns: several months of the year produce negative net cash flow (payroll and vendor payments are large monthly outflows, with average monthly payroll around $35.5 million), and property‑tax receipts are concentrated in December–February. Byers and staff warned that maintaining an adequate fund balance supports payroll and reimbursable grant operations.
Board members asked for and administration agreed to provide additional detail. Trustee requests included an itemized list of expenditures by function, actual transaction reports, and the vendor payment listing that the district provides quarterly; administration said it would provide system reports and the requested itemizations in the Friday packet and run the vendor listing and monthly reports for trustees (the administration noted some reports require month close and audit timing). Staff also said the district will present the proposed budget and compensation plan at the board meeting next Wednesday and will return in August with proposed tax‑rate figures after certified property values are published in late July.
No formal action was taken because the session was a workshop. Administrators said the district's external financial audit work continues and the audited financials will be presented to the board in November.
