Socorro Independent School District can consider itself "stable" thanks to a critical credit rating that opens the door for financing education in the district.
Moody’s, an independent credit and bond rating agency based in New York City, cited significantly improved SISD financial performance in FY2026 following a period of deficit spending. The agency also recognized substantial expenditure reductions, a projected addition of approximately $4 million to the district's fund balance, adoption of a balanced fiscal year 2027 budget and a $5 million reduction in annual cash-flow borrowing.
Moody’s Ratings has revised Socorro Independent School District’s financial outlook from negative to stable while affirming the district’s A2, or highest possible
investment grade, regarding issuer and general obligation tax.
"This is an important milestone for Socorro ISD and for the community that has held us accountable throughout this process," Socorro ISD Superintendent James P. Vasquez said in a statement. "We heard clearly from our community that the first step, before asking taxpayers to consider any additional revenue, was for the district to take care of what it could internally. That meant making difficult reductions, strengthening financial controls, aligning spending with enrollment and demonstrating that we could operate within a balanced budget."
SISD's long-term revenue strategy
Over the past two years, SISD has reduced recurring expenditures, significantly cut central administrative staffing,strengthened budget controls, redesigned the district’s employee healthcare plan and more closely aligned staffing and operations with enrollment.
Enrollment has decreased by roughly 600 to nearly 800 students per year since 2024, amounting to a cumulative drop of about 1,400 students. Total district enrollment shifted from approximately 47,300 students down to roughly 45,906–46,900 students in 2026.
Vasquez noted Moody’s assessment shows that work is "on track," but bolstering the district's fiduciary outlook continues.
The long-term revenue strategy for the district has included stabilizing its annual operations, rebuilding reserves, reducing reliance on short-term borrowing and protecting student programs.
The SISD Board of Trustees unanimously adopted a total operating budget of $550.5 million for the 2026–27 school year, marking the district's second consecutive balanced budget. The adopted general fund plan generates a $550,000 surplus.
Vasquez credited Chief Financial Officer David Solis and the district’s Financial Services team for leading the efforts.
"Mr. Solis and the entire finance team have provided the disciplined leadership, careful stewardship and transparency necessary to restore confidence in the district’s finances," Vasquez said in a statement. "This progress also reflects the Board of Trustees’ willingness to make difficult decisions and maintain a long-term focus on restoring financial stability, as well as the efforts of employees throughout the district who helped carry out that work."
Kristian Jaime is the Top Story Reporter for the El Paso Times and is reachable at Kjaime@elpasotimes.com.
This article originally appeared on El Paso Times: SISD credit upgraded amid strict financial measures
