Socorro ISD CFO outlines $7M revenue hit from enrollment decline, facility needs could require future bond
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Summary
CFO David Solis briefed trustees on 2026-27 budget planning, reporting an anticipated enrollment decline of roughly 725 students (about $7 million in revenue), possible 20'$25 million borrowing, recurring device and bus replacement needs, and facility-assessment needs in the hundreds of millions.
At the school board's Feb. 18 workshop, Chief Financial Officer David Solis walked trustees through the fiscal assumptions and trade-offs that will shape the 2026'027 budget.
Solis told the board the district expects an enrollment decline of about 725 students, representing roughly a $7 million reduction in revenue next year. "As we began planning for the 20 six-twenty 7 budget, the district is using conservative and realistic assumptions," Solis said, describing efforts to adopt a balanced budget without relying on one-time funds.
Using a scenario exercise, Solis walked trustees through cost pressures and capital needs: replacement of student devices is roughly an $8 million annual need now that ESSER funds are no longer available; camera and server updates were estimated at about $1.2 million per year; bus replacement at about $190,000 per bus with a recommended 20 buses/year (~$4 million); and a prior facilities assessment identified about $320 million in deferred needs across the district. In December the board approved a facilities assessment and demographic study that staff said will inform long-term planning.
Solis acknowledged the district had previously closed a larger projected shortfall and adopted a balanced budget for the current year through staffing adjustments, operational reductions and state funds. He said the district is now evaluating revenue options, potential loan needs in the $20'$25 million range (with estimated fees/interest), and the possibility of repurposing a committed fund balance to address urgent facility needs.
Trustees discussed the trade-offs inherent in preserving classroom staffing versus addressing deferred maintenance and capital replacement. Solis said the budget team will continue staffing reviews and bring updates to the board as planning continues; tax-rate adoption and formal budget approval will follow the public-notice process required by law.
Next steps: continued budget workshops and staffing reviews this month, followed by proposed budget adoption and tax-rate action in the coming months.