(EL PASO INDEPENDENT SCHOOL DISTRICT – June 17, 2026) — The El Paso Independent School District Board of Trustees approved the district's Fiscal Year 2026-27 budget and employee compensation plan Tuesday evening, adopting a $522.9 million budget that reduced the district's projected deficit from $37 million to $4.3 million through months of careful planning, operational efficiencies, and districtwide collaboration.
In early May, the district projected a $37 million deficit for the 2026-27 school year. Following a comprehensive review of every budget line item and expenditure, El Paso ISD implemented operational efficiencies, closed vacancies, carefully reviewed expenses, and made difficult but necessary staffing decisions. As a result, the district reduced adopted expenditures from $547 million which had ballooned to $580 million in 2025-26 to $523 million in 2026-27, a reduction of approximately $57 million.
These efforts demonstrate the district's commitment to addressing financial challenges responsibly while prioritizing students and classrooms. As a result, the district projects ending the 2026-27 fiscal year with a fund balance equivalent to approximately 38 days of operating expenses, an important step toward strengthening El Paso ISD's long-term financial stability for the benefit of the entire community. The budget included an overall reduction of 851 positions, including 20% of central/non-campus positions (326 central/non-campus positions) and 8% of campus-level positions (525 campus-level positions), through a combination of vacant positions and the Reduction in Force (RIF) process.
The 55 contractual employees and teachers approved by the Board on Monday, June 15, 2026, represent a significant reduction from the original 94 positions identified, reflecting the district's continued efforts to lessen the impact of the RIF while advancing its Financial Stability Plan.
"The budget adopted by the Board reflects months of hard work and collaboration across the district to ensure El Paso ISD remains financially stable while continuing to prioritize students," Superintendent Dr. Brian Lusk said. "This has been a team effort. Together, we have carefully reviewed our resources, made difficult decisions, and remained committed to protecting the educational experiences and support systems that help our students succeed."
Trustees also approved the district's 2026-27 Employee Compensation Plan, which includes approximately $4.4 million in compensation and benefit investments for employees. The plan includes an increase in employee contributions for healthcare benefits and eliminates district contribution to Health Savings Accounts (HSA). Employees will continue to be supported through parental leave, wellness initiatives, and instructional stipends, helping the district attract and retain high-quality employees.
Board President Leah Hanany said the approved budget and compensation plan reflect the district's commitment to balancing financial stewardship with support for students and employees.
“For too long, school finance in our community has often been viewed as something that happens behind the scenes," Hanany said. "That must change. This Board is committed to setting a new standard for transparency, accountability, and oversight at El Paso ISD. As we move forward, our focus is on strengthening financial controls, clearer communication, and ensuring every decision supports our core mission of educating students.”
The adopted budget will take effect July 1, 2026, and serve as the district's financial plan for the 2026-27 fiscal year.