EL PASO, Texas (KTSM) – The Canutillo Independent School District (CISD) is facing layoffs and other potential ramifications with a deficit of $6 million for 2024.
Just a few weeks ago, they eliminated 13 positions, eight of which were being occupied, and according to district officials they are considering every option in order to balance their budget, and after failing to do so for the first time in several years during fiscal year 2023.
“Everything’s on the table right now. We need to make sure that we provide the community with a sound financial outlook. And that will mean making some sacrifices for us. So we do expect to make some tough decisions coming up,” said CISD Spokesperson Gustavo Reveles.
District officials listed multiple issues as the cause for the deficit, including inflation and decreasing enrollment, but a major problem is that they did not receive additional funding from the state that they were expecting when they approved employee raises and increasing healthcare insurance premiums to remain competitive in the market.
The Texas Legislature met for four different special sessions to discuss school funding, but were unable to pass any bill that would increase funding for school districts across the state.
“We made the assumption that those funds will come our way, given everything that had been proposed. And unfortunately, that didn’t happen. So that was part of the reason that impacted our budget.”
With no increased funding from the state, CISD has had to dip into their fund balance in order to cover their increased expenses, district officials explained that is not sustainable for much longer.
“So the rainy day fund goes anywhere from 60 to 90 days within that fund. We’re currently at 71 days, I believe. And so we can’t continue that route because if we do, we will have financial consequences when it comes to sort of like a credit rating or a possibility of bankruptcy,” said Canutillo ISD Board President Armando Rodriguez.
Reveles explained that there are currently 1,800 students within CISD’s boundaries that are not currently enrolled with their district, and added that the state funding for those students alone would amount to $19 million dollars, thereby eliminating their deficit.
According to Reveles, many of these students and families are part of new and growing neighborhoods that do not have a CISD school nearby. As part of their plans to solve their current challenges, Reveles said they are doing research and considering ways to relocate schools to these new neighborhoods in order to keep students in their district.
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