As the new school year approaches, several school districts in El Paso County are grappling with significant financial challenges. The San Elizario and Fabens Independent School Districts are bracing for budget deficits, while the Tornillo Independent School District has already implemented staff reductions. These districts are exploring various cost-cutting measures to avoid further financial strain.

The financial turmoil stems from a combination of declining enrollment, low attendance, stagnant state funding, and new unfunded mandates from the last Texas Legislature. Despite having healthy fund balances, these districts risk depleting their savings if they cannot balance their budgets.

San Elizario ISD: Closing Schools to Cut Costs

The San Elizario Independent School District has taken a proactive approach to managing its financial challenges. This summer, the district closed two of its four elementary schools to reduce utility and maintenance costs. Students and staff from the closed schools have been relocated to the remaining campuses.

Superintendent Jeannie Meza-Chavez explained that the decision to close the schools was driven by declining enrollment and the need to optimize resources. The district has seen a consistent decline in student numbers, losing about 100-150 students annually. As of July 21, the district expects to have approximately 2,700 students.

The district adopted a $40.8 million budget for the 2026-27 school year, with a $4 million deficit. While the district has over $11.5 million in reserves, continued deficits could reduce this fund balance to $7.5 million, providing only about 67 days of emergency funding. The state requires districts to maintain at least 75 days of fund balance to achieve an A rating in the Financial Integrity Rating System of Texas.

Fabens ISD: Addressing Low Attendance and Enrollment Decline

The Fabens Independent School District is also facing financial difficulties due to low attendance and declining enrollment. The district adopted a $26.7 million budget for the coming school year, with a $1.5 million deficit. Low attendance has been a significant contributor to the deficit, as the district must maintain staff levels regardless of student presence.

Enrollment at Fabens ISD has declined by about 18% since the 2018-19 school year, with expectations of a further decrease of about 40 students in the coming year. The district started the school year with about $11 million in savings, enough to operate for approximately 120 days. However, continued low enrollment and attendance could necessitate further budget adjustments and unspecified cuts.

The district has implemented various measures to reduce payroll costs, including hiring from within the district, reducing summer school teacher pay, and offering buyouts to retiring or resigning employees. Over a dozen employees have taken the separation incentive since it was implemented in 2026, saving the district about $330,000 annually.

Tornillo ISD: Realigning Resources to Meet Enrollment Changes

The Tornillo Independent School District has taken a strategic approach to address its financial challenges. The district laid off four teachers earlier this year to avoid a deficit and plans to realign its campuses based on enrollment data. All seventh- and eighth-graders will be moved to the high school, while the former middle school will become a pre-kindergarten through sixth-grade campus.

Superintendent Rosa Vega-Barrio emphasized that the layoffs were not due to insufficient financial resources but rather a response to declining enrollment. The district expects to have about 600 students by the 2027-28 school year. The realignment of campuses aims to maximize existing facilities, reduce maintenance and utility costs, and improve operational efficiencies.

Tornillo ISD has about $5.6 million in its fund balance, providing almost 170 days of emergency funding. The district plans to transition all students to a single campus within the next three to four years, further optimizing resources and reducing costs.

As these districts navigate their financial challenges, they hope for increased state funding during the next legislative session to meet mandates and address their unique needs.