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Ysleta ISD drops to a B on TEA's School FIRST; officials cite ESSER stipend timing and cash coverage decline
Summary
Ysleta ISD's Chief Finance and Operations Officer told the board the district's Financial Integrity Rating System of Texas (FIRST) score fell from 92 to 88 for the year ending June 30, 2023, driven by declines in days of cash on hand and current ratio related largely to ESSER stipend payments.
Ysleta Independent School District held the required public hearing on its Financial Integrity Rating System of Texas (School FIRST) report and reviewed the district's score and required disclosures.
Chief Finance and Operations Officer Bloomi Cambern told the board the district maintained passing results on the FIRST system's mandatory indicators 1 through 5, including timely financial reporting and an unmodified audit opinion. However, the district's composite score fell from 92 (an A) for the fiscal year ended June 30, 2022, to 88 (a high B) for the fiscal year ended June 30, 2023.
Cambern identified the two indicators that caused the decrease: indicator 7 (days of cash on hand) and indicator 8 (current ratio). She said days of cash fell from 93 to 83 days of coverage, primarily due to ESSER stipend payments that reduced cash balances. The district's current ratio declined to just under three times coverage, down from a higher multiple the prior year, which cost the district two points on that indicator.
Cambern said the district has restored some cash since the report period but warned that neighboring districts face cash‑flow stress and that the ongoing state legislative session and lack of increases to the basic allotment since 2019 increase budgetary pressure. She said the district will present a budget process overview to the board in January and is preparing for a difficult budget season if the state does not provide additional funding.
The district also disclosed required hyperlinks and documents during the hearing, including the superintendent's contract, reimbursements, outside compensation, gifts and business transactions, as required by the FIRST reporting rules.
Board members asked about the level of concern heading into the new fiscal year. Cambern said her concern was "pretty high," citing uncertainty in the legislative session and potential cash‑flow issues as early as spring if the state does not act. She said the administration will bring workshop material on budget options and timelines to the board in January.
