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El Paso Matters – El Paso ISD among four Texas school districts selected for state spending review

Posted on October 6, 2026

The Texas Comptroller’s Office has included El Paso Independent School District among four institutions picked for “a detailed review” to examine if they spend state funds in compliance with state law.

Texas Gov. Greg Abbott requested a review process in August to ensure that districts spend state funds on students, classrooms and teachers and not on more administration or what he called “non-instructional bureaucracy.”

Comptroller Don Huffines said in an Oct. 5 news release that his office was committed to providing a clear assessment of how the state’s education dollars are used. The office also will review the Austin, Prosper (north of Dallas) and Barbers Hill (east of Houston) school districts.

“This review is an important step to ensure transparency, accountability, and the responsible use of public funds,” Huffines said.

EPISD is on an intersession period where schools are closed, and officials did not immediately respond to requests for comment. It is unknown when EPISD was informed about the upcoming review and which departments  might be involved.

EPISD last school year spent just about 11% of its budget on leadership and general administration, according to Texas Education Agency data. The Ysleta Independent School District also spent about 11% on leadership and administration, while the Socorro Independent School District was at about 10%.  

It is unclear how the Comptroller’s Office selected the four districts or when the reviews would be done. The release said the report would be completed by Dec. 31, and provided to the 90th State Legislature that convenes in January.

Abbott mentioned his initiative to limit administrative spending in Texas public schools during an Aug. 19 campaign stop in El Paso. He wanted districts to focus at least 70% of their state funds on the classrooms. At the time, El Paso education leaders said this idea would have little if any impact on their districts.

EPISD Superintendent Brian Lusk in August told El Paso Matters that the district cut about 220 central office positions between December and May before declaring financial exigency in June. 

Gustavo Reveles

This review request is simply political theater during an election cycle, said Gustavo Reveles, El Paso’s representative on the State Board of Education. He called this is part of a continued attack by state leaders on the credibility of public education.

Reveles said the reality is that the vast majority of school districts in Texas face historic deficits because Abbott and the Legislature have not provided adequate funding for public education and have diverted funds to vouchers.

“I think that’s where the focus should be, and that’s where the investigation should be, and not on the perception of mismanagement,” Reveles said.

During his campaign stop in El Paso, Abbott said that future legislation would require low-performing schools to undergo an audit by the state comptroller. The governor, a Republican, will face Democratic challenger Gina Hinojosa in the Nov. 3 election. 

The Comptroller’s Office said the districts that will be under review and their enrollment during the 2025-26 academic year were Austin, 69,074; El Paso, 46,244; Prosper, 33,583; and Barbers Hill, 8,088.   

Austin, Prosper and El Paso school districts have experienced financial challenges recently. EPISD declared financial exigency in June after its own internal audit found years of bad budgeting. As a result, the El Paso district needed to lay off dozens of contracted employees including 42 teachers. Barbers Hill is being scrutinized by the state.  

It was not clear what role, if any, the Texas Education Agency would play in these reviews. The TEA did not respond to questions about what these investigations could mean for the school districts involved. The State Auditor’s Office released a report in August that found that the TEA had a management-heavy workforce.

The post El Paso ISD among four Texas school districts selected for state spending review appeared first on El Paso Matters.

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