Texas school district says it's facing financial emergency

By  | 

CROSBY, Texas (AP) A Houston-area school district has declared that it's facing an official financial emergency, becoming the 16th district since 2012 to inform the state it's facing such a crisis.

Trustees for Crosby Independent School District adopted a resolution Monday that established the financial emergency and the need to cut staff.

The Houston Chronicle reports that the district of 6,000 students needs to cut at least $5.5 million through layoffs.

Administrators learned the depth of the problem in June when a new chief financial officer found "cash-flow issues" relating in part to construction spending.

“All staff reductions will have ripple effects that are undeniable, but we have been charged with the impossible task of having to determine the changes that will have the least impact on our children and the long-term health of our district,” Crosby ISD Superintendent Scott Davis said in a statement.

“Saving Crosby ISD is the ultimate goal and in order to do this, difficult and agonizing decisions have to be made. It is my hope that as the district’s enrollment continues to grow, we can carefully add back some of these positions in a way that is healthy for our district in future years.”

Declarations of a financial crisis have been rare since 2011, when the state created tougher standards for districts to qualify.

They must meet one of five criteria, including losing 20 percent of a district's fund balance.