EPISD to undergo performance review by the Texas Comptroller
EL PASO, Texas (KVIA) — Texas Comptroller Don Huffines announced on Monday that four school districts across the state will undergo a detailed review to “ensure taxpayer funds are being spent responsibly.” One was the El Paso Independent School District.
In a news release, the Texas Comptroller announced the selection of Austin, Barbers Hill, Prosper and El Paso school districts for these performance reviews.
EPISD has around 46,244 students enrolled across all its schools.
“This review is an important step to ensure transparency, accountability, and the responsible use of public funds,” Huffines said. “I’ve informed Gov. Greg Abbott about the school districts we are examining. Our office is committed to providing a clear assessment that helps Texans understand how their education dollars are being used.”
The release also says Texas Governor Greg Abbott formally requested the Huffines Performance Review back in August, which will examine “whether district spending complies with state law and is directed toward students, classrooms and teachers, rather than toward administrative expansion or non‑instructional bureaucracy.”
The final reports are scheduled to be completed by Dec. 31, 2026, which will give the 90th Legislature sufficient time to consider any reform recommendations, the news release added.
ABC-7 has reached out to EPISD, EPISD’s board president and vice president for comment.
EPISD Board of Trustees vice president and chair of the audit committee Dr. Jack Loveridge said he heard rumors about these reviews the last time Texas Gov. Greg Abbott came to El Paso in August.
“I’m a bit surprised at the way they’re proceeding with this review at the state level because it’s unusual to use the Comptroller’s Office in this way,” said Dr. Loveridge. “It raises questions of what the ultimate objective of a review like this is, but we’re ready for it as a school district, I’m sure.”
“Looking into it, I haven’t seen another example of the Comptroller’s Office being used in quite this way because usually this is done by the Legislative Budget Board,” Dr. Loveridge added. “A review like this would have open and very clear objectives and the criteria for which these schools were selected.”
On social media, EPISD Board President Leah Hanany shared the following statement:
“The Comptroller’s focus on administrative spending reflects a concern that this Board had already identified and begun addressing well before this review was announced.
In July 2025, Dr. Jack Loveridge and I requested an analysis from El Paso ISD’s independent Internal Audit Department because we believed the district’s administrative structure and costs warranted closer scrutiny. That concern was part of a broader recognition that the district needed stronger financial discipline, a leaner administrative structure, and a more sustainable operating model — with resources directed as closely as possible to students, teachers and campuses.
Since taking office, Dr. Brian Lusk has moved quickly to address those challenges. Under his leadership, the district has reduced 851 positions, including 326 central-office and non-campus positions, eliminated vacancies, reviewed contracts and operating expenses, strengthened financial controls and forecasting, and restructured central-office staff. The goal throughout has been to ensure that a greater share of the district’s resources is supporting the work closest to students.
The financial context was significant. From the end of the 2021-22 budget cycle through 2025-26, the district’s General Fund reserves declined by approximately $100 million during the prior administration, reflecting several years in which recurring operating deficits were covered in part by drawing down reserves. By 2026, it was clear that the district needed not only to reduce administrative costs, but also to restore structural balance and put its finances on a sustainable path.
The progress since then has been substantial. A projected $37 million deficit for 2026-27 was reduced to approximately $4.3 million when the budget was adopted, and additional savings identified since then are expected to eliminate that remaining deficit. The district is now positioned for its first balanced budget in several years while maintaining more than $60 million in reserves.
So, to the extent the Comptroller is saying El Paso ISD needed to take a hard look at administrative spending and financial sustainability, we agree. We reached that conclusion ourselves, began the work before this review was announced, and have taken significant steps to correct it.”
“I’m very confident that EPISD, at least right now, after all that we’ve done: we cut our budget by 10%, we have gone through some very painful layoffs that have affected our whole community and most importantly, we’ve changed from one administration to another a year ago, which means that year on year, excessive spending really has come under control as we are fixing that,” Dr. Loveridge added.
EPISD also sent to us the following statement:
“El Paso ISD’s strong academic gains in the Texas Education Agency accountability ratings, including a two-point increase over last year’s score and the district’s highest gains in five years, reflect its steadfast commitment to student success and directing resources to the classroom.
Since Dr. Brian Lusk became superintendent in December 2025, the district has reduced 326 central-office and non-campus positions, eliminated vacancies, reassessed contracts, streamlined operating expenses, and strengthened financial controls and transparency.
The district recently launched a Financial Budget Dashboard, available at:
http://www.episd.org/financialdashboard
and shared details of its Financial Stability Plan at:
El Paso ISD will continue working to improve efficiency and align resources with current needs while partnering with the State of Texas to advance outcomes for El Paso’s children.”
“The runway for this audit will go through December 31, so I do wonder what is the overall objective and why are we constantly using fear in public education finance to get what we want from a political perspective?,” Dr. Loveridge also said. “I think that’s very concerning coming from the state level; it’s on us to be open and honest and to make sure that we put the people of El Paso and most importantly, the students of El Paso ISD first.”
Vice President Loveridge added, the district will have 100% cooperation with the state of Texas and with the Comptroller’s Office during this performance review until the end of the year.
“The district stands in a much stronger financial position than it did a year ago; we know where our major challenges lie, and I think that it’s very much incumbent upon this administration to meet those challenges,” Dr. Loveridge added. “It’s our job as the board of trustees to hold them accountable and to make sure that they deliver right by the public.”
“I do want the public to know they need not be worried about this in terms of saying that EPISD is in trouble, because it is not in trouble with the state of Texas.” “We’ve heard every single one from TEA saying that we’re nowhere near the concerns that would be required for a state takeover, so that’s not what this means at all,” Dr. Loveridge added.
ABC-7 also reached out to Texas Governor Greg Abbott’s office for comment; they referred us to this news release regarding the Governor’s request for the Comptroller to investigate school district finances and ensure taxpayer dollars reach students and teachers.
EPISD Board of Trustees will have a meeting next Monday, October 12, 2026.
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