Ysleta ISD audit and budget presenters warn of multi‑million‑dollar shortfall; trustees approve $63.2M tax‑anticipation notes and decline to fund new SB546‑com‑

Ysleta ISD’s internal auditor and budget staff told trustees the district faces structural budget challenges that will require difficult choices, then the board approved a short‑term borrowing plan and a feasibility determination related to school‑bus safety belts.

Amy Sanchez, the district’s internal auditor, said audits and follow‑ups show lingering fiscal risks and highlighted a high‑risk observation regarding the general fund’s unassigned balance. On whether insolvency is possible she said expenditures would have to be significantly decreased to avoid that outcome: "Unless expenditures are significantly decreased... those efforts will need to be continued," Sanchez said.

Budget presenter Ms. Linly Camburn told trustees that Ysleta’s audited unassigned general fund balance was $35.5 million at the end of fiscal 2025, below the district policy target of 10–15% of budget (about $42 million given current budgeted expenditures). She estimated the district faces roughly a $16 million projected deficit for the coming year and described urgent deferred maintenance needs totaling about $57.6 million—including multiple HVAC chillers, aging buses, resurfacing of tracks and failing bleachers and fieldhouses.

Camburn also presented Senate Bill 546 bus data required by the state: the district reported 226 buses total (222 yellow), of which 30 have three‑point belts, 73 have two‑point belts (retrofit estimate a little under $1 million) and 123 have no seat belts (retrofit estimate $3.8 million), for a combined retrofit estimate of about $4.8 million. She said full replacement of older buses would be far costlier—roughly $31.7 million to replace most of the fleet.

After discussion, the board voted 7–0 to approve a motion (moved by Trustee Hernandez, second by Trustee Woodruff) finding the district does not have the financial feasibility to buy 196 new three‑point‑belt buses under SB546. The same meeting included a separate vote (moved by Trustee Dwyer, second by Trustee Woodruff) to authorize issuance and sale of tax‑and‑revenue anticipation notes in an aggregate principal amount of $63.2 million to smooth cash flow; officials estimated the first note at roughly 4.05% (about $950,000 interest) and projected total interest around $2 million across two notes when issued.

Trustees pressed staff for greater transparency, line‑item detail and community engagement before finalizing a multi‑year plan. Camburn said her goal is to bring a comprehensive fund‑balance plan and specific recommendations next month to avoid consuming the district’s remaining reserves and to replenish the unassigned fund balance within a multi‑year horizon.

Other votes during the meeting included approval of the consent agenda, acceptance of a $6,011 donation to Del Valle High School and an amendment to the instructional calendar; all votes recorded were unanimous (7–0) according to the electronic tally. The board also approved an interlocal agreement to permit physician standing orders for non‑prescribed emergency medications for students.

The district’s next step is a June budget recommendation staff described as a "comprehensive plan" that will include possible structural changes to reduce recurring expenditures and restore policy‑required reserves. Trustees said they will continue to review options in workshops ahead of any final budget adoption.