Ciudad Juárez hosts free Xocerball Americup 2026 matches

Heriberto Perez Lara

JUÁREZ, Chihuahua (KVIA) — The Xokerball AmeriCup 2026 kicked off Wednesday with 16 national soccer teams set to play in Ciudad Juárez all week.

The tournament began at 9 a.m. and an opening ceremony will take place at 8 p.m. Following the ceremony, there will be a featured match between Mexico and the U.S.

This soccer federation tournament, which will be held for the first time in the border region of Juárez and El Paso, has already taken place in other Mexican cities, and even in some South American and European countries.

The tournament will feature national teams from Mexico, the United States, Canada, Brazil, Costa Rica, Honduras, Panama, Colombia, Argentina, Chile, Uruguay, Guatemala, Haiti, Bolivia, Paraguay, the Dominican Republic, and Belgium.

The matches began today and will continue until Sunday, when the finals will be played.

The president of the Xokerball Federation, Sergio Ibarra Molina, a native of Juárez, told ABC-7 he’s happy the Americup is happening here because he wanted to bring this type of event to the border for the community.

“I’m from Juárez, and I don’t expect anything different from what I’ve always experienced: warm, friendly, and enthusiastic people who believe in the projects we’re seeing and, above all, who embrace us,” Ibarra said. “We rarely have the opportunity to hold these kinds of events, and I’m sure the people of Juárez will embrace it as their own and take ownership of it. I have no doubt that the people of Juárez will react in a responsible and warm manner.”

Juárez and the Xokerball Federation say it’s not easy to bring events like this one home, and want this to be the first test of many to come.

“When we tried to promote the event, we didn’t sell Juárez, we sold the region along with El Paso, the unique and different appeal of the border, the lifestyle and the community that exists here,” Ibarra said. “The way of life here creates a bit of unease for others who live in other parts of the world, and when we brought it up, they didn’t understand.”

Both Xokerball and the city of Juárez invite the binational community to watch the free matches, located at the big Juárez red ‘X,’ next to the border.

“I hope people enjoy it, that they have a different experience, that they leave here happy and say, ‘I didn’t expect this,'” Ibarra said. “If we can bring out that side of people, mission accomplished.”

“Beyond the sporting aspect, I want people to see that it’s an organized event, a safe event, an event where anyone from the region can come together without any divisions, and where the rest of the world can see what this region is really like; unique, that we present a true image of life here, and that people from other countries say they didn’t expect this from Juárez.”

ABC-7 also spoke with the Mexico National Xokerball team head coach, Sergio López, with some of his players and with former Mexican pro-soccer player, Jonny Magallón.

The Mexico team has won this cup back-to-back in the past two years and for this year’s edition, the goal is clear: be champions again for the third time.

You can click here for more information about the event.

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Man charged for aggravated robbery at Segundo Barrio store

Gabrielle Lopez

EL PASO, Texas (KVIA) — El Paso police charged a 57-year-old man for aggravated robbery at a store in Segundo Barrio near the Paso del Norte Port of Entry. ABC-7 reported live from the scene when police thought the man was barricaded in the store.

The robbery happened May 6 at Levcomm International, which sells phones at 908 S Stanton.

EPPD said Rodolfo Madrid Torres entered the business, assaulted the owner and demanded money. The owner broke free and locked Torres in the building.

When officers arrived, they believed Rodolfo was inside, but he left the building before they got there, police said. Investigators said he stole cash and the owner’s wallet.

Officers arrested and booked Torres into the county detention facility Monday.

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ABC-7 Xtra Investigation: Can the City of El Paso collect debt from Trump campaign rally without this key document? 

Lesley Engle

EL PASO, Texas (KVIA) — Seven years after thousands crowded the El Paso County Coliseum to see then-President Donald Trump campaign for re-election, the El Paso City Council has renewed its efforts to collect on a half-million-dollar bill for services related to the rally.

However, collecting payments may be more complex than they thought.

Records obtained by ABC-7 reveal that the City of El Paso did not discuss costs with President Trump’s campaign prior to his 2019 rally. The finding comes despite ongoing discussions among city leaders and elected officials about the $569,204.63 the city says the campaign still owes it. 

At a March council meeting, District 7 Representative Lily Limon requested an update on the outstanding Trump campaign debt and called for quarterly reports.  

Following that meeting, ABC-7 filed an open records request to determine whether any cost discussions or agreements existed before the February 11, 2019, rally.   

We reviewed the records the city sent, which did not show any discussions with the campaign, including cost estimates, quotes, draft agreements, or contracts, prior to the rally. ABC-7 found the city still does not have a formal cost-recovery plan in place for events such as political campaign rallies. 

“You cannot make people pay for things after the fact,” Carliss Chatman said. “If the city didn’t anticipate it, the city assumed the risk.” 

Carliss Chatman, a professor of law at the SMU Dedman School of Law, told ABC-7 that many cities fail to account for the scale of political events beyond basic venue rental fees. When a city provides services without a contract, the law may view the work as a “gift” or an “accord and satisfaction,” leaving the municipality responsible for the expenses. 

“It’s disappointing because we went into that and now we’re suffering the consequences,” Rep. Limon said. “But the good thing is it may lead to change. Those are important questions to ask—were we prepared, were we ready? I think we’ll be smarter moving forward.” 

The bill the Trump campaign did pay

Donald Trump announced his visit to El Paso on February 6, 2019, just five days before the rally. His “Make America Great Again” event filled every seat available inside the El Paso County Coliseum, with thousands more gathered outside.  

Records show the campaign paid a $5,000 rental fee and an additional $1,000 non-refundable deposit for the Coliseum, and ABC-7 obtained a copy of the wire transfer confirming the payment.

“I think that the one really critical person in this Trump visit was Brian Kennedy. He was the president of the Sports Commission, who, pretty much four hours before, said ‘hey if we don’t get payment by such a time your event is cancelled,’” Representative Lily Limon said. 

Kennedy told ABC-7 he negotiated a contract in advance with the Trump campaign. Under that agreement, the campaign was required to pay before Trump stepped on stage. The commission, which manages the Coliseum for El Paso County, also required the campaign to cover all venue-related expenses. 

No agreement with the City of El Paso 

A day after the Feb. 11 rally, city officials confirmed to ABC-7, in response to the station’s inquiry, that taxpayer resources were used to support the event. At the time, officials said costs were still being calculated and would be billed to the campaign once finalized.

The city billed Trump’s campaign more than $470,000 a month after the event, according to city records obtained by ABC-7 at the time. A one-time 21% delinquency fee later increased the total bill to nearly $570,000. 

Records show reimbursements covered a range of costs, including equipment, personnel and services such as security, cleanup, setup and logistics.  

According to City of El Paso billing records for the rally, the police department incurred the highest costs at $380,942.12, followed by the fire department at $60,630.84, Sun Metro at $15,577.52, Streets and Maintenance at $6,452, the Department of Aviation at $6,286.57 and the Health Department at $528. 

Security alone drew 476 officers from the El Paso and Anthony police departments and the El Paso and Socorro independent school districts, according to the itemized bill reviewed by ABC-7. That was in addition to El Paso County sheriff’s deputies and Secret Service personnel. 

ABC-7 asked to interview City Manager Dionne Mack and City Attorney Karla Nieman to walk us through the bill, explain how the city develops cost estimates for larger events, discuss how it plans to collect payment without an agreement, and any plans to create a policy to guide future event planning. 

City spokeswoman Laura Cruz-Acosta declined, saying there were no new developments to warrant additional interviews. “You’re welcome to reference prior interviews and KVIA’s previous coverage as the most current information available,” she wrote in an email.

City Representative Limon told ABC-7 she was not aware that the city had no prior agreements or documented discussions with the Trump campaign when asked. She described efforts to collect the outstanding amount as “uphill” but worth pursuing.

She said she placed the issue on the March 3 agenda to ensure the debt is not forgotten, and questioned why such a large amount of money has been left unpaid, comparing it to unpaid traffic violations or parking meter fees that are always collected. 

Chatman, the SMU professor who specializes in contract law, corporate governance, legal ethics, and fiduciary duties, said when cities host large rallies, they must look beyond simple venue rentals to consider the costs of additional security and the size of expected crowds.  

“The first is just a contract with the terms between the city or the county, whatever municipality is hosting and the organization that is hosting the rally,” Chatman said. 

Chatman says contracts for these events typically include provisions for police support that go beyond everyday operations, including the cost of closing or barricading roads to manage traffic.  

Chatman said some cities include clauses that allow them to charge more if the scale of the event exceeds what was originally anticipated. She said without those written terms, a city may have no legal mechanism to recover those costs. 

El Paso does not have a formal policy for recouping costs associated with large campaign events like Trump’s in 2019, according to city spokesperson Laura Cruz-Acosta. 

“So, there is no formal policy that is in place as it relates to it, but we do have procedures and forms that are filled out for special events, for example.” She said the city has a special events form where people can describe the event’s footprint and whether there will be a need for street closures for things like parades.   

“So, there’s really no one-size-fits-all when it comes to the process, but at the very minimum there’s a starting point in terms of filling out a form in order to capture all of the details and information related to that kind of special event,” Cruz-Acosta said. 

Cruz-Acosta said creating a formal policy for campaign events would require City Council action. She noted the council hired the Law Offices of Snapper L. Carr, which was in November of 2022, according to city records. We asked Cruz-Acosta how much it cost to hire the Austin-based law firm, which also serves as the city’s lobbying group during Texas legislative sessions, and she said an open records request would be required.

According to the records we obtained through our request, the city hired the firm on a contingency basis—meaning the law firm is paid only if it recovers money on the city’s behalf.

Limon believes cities need to become “smarter” about securing payment for services. She noted that providing services for campaigns is a “tremendous drain on public service,” particularly on first responders. She said if the $570,000 were recovered, it would directly benefit departments, which she said are often in need of funding. 

Limon stressed the need for a clear policy outlining expectations for campaigns. 

“We can’t just say, ‘well, welcome to the city and we’ll be there, we’ll protect you, um, we’ll close roads, we’ll do whatever is necessary, and then afterwards we’re going to send you a bill and we hope that you’ll pay for it,'” Limon explained. She affirmed the city’s responsibility to offer protection but asserted that entities using city services should pay for them, regardless of the campaign. “It’s — You have received a service from this city, and you should be paying for that service that you received. Whether it’s Bernie Sanders, whether it’s Donald Trump, it doesn’t matter who it is,” Limon said. 

Professor Chatman said large cities often have standardized protocols and checklists in place for event permits to ensure every host is treated the same regardless of their political affiliation. Chatman noted that smaller cities may lack these procedures because they do not regularly host large-scale events.  

“Best practices are to have checklists and standards and protocols in place so that you eliminate human error and human judgment and human bias. That’s what you want to do,” Chatman said. 

Chatman recommended that municipalities use a “360 approach” for future event planning, including evaluating the profile of speakers, the potential for counter-protests and the total burden on city resources.  

“Once it happens the first time and you see what a burden it is on a city budget, then you have to put protocols in place and have best practices for hosting these sorts of events,” Chatman said. 

In Tucson, Arizona, the city declined to pursue about $80,000 in public safety costs from a 2016 Trump rally and about $40,000 from a Bernie Sanders rally that same year, concluding legal action would cost more, Andy Squire, public information officer in the City Manager’s Office, told ABC-7. When Trump returned in September of that same year, however, the city required his campaign to prepay estimated public safety and facility rental costs—a total of $145,222, including nearly $116,000 for police. 

“In the end it came down to modifying the language in the facility use agreements at the Tucson Convention Center, which is city owned and operated under contract with Legends Global,” Squire said in an email response to ABC-7. 

ABC-7 reached out to the Republican National Committee seeking comment on the costs related to President Trump’s campaign rally in El Paso. A former campaign official said, “All questions related to local law enforcement and first responder costs we defer to the U.S. Secret Service.” 

A Secret Service spokesperson told ABC-7 that the agency coordinates security planning with local law enforcement partners but “currently lacks a mechanism to reimburse local governments for their support during protective events.” 

The spokesperson added that the agency will continue working with Congress to seek resources for state, county, and city law enforcement agencies assisting in security operations. 

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Questions grow over EPISD’s $52 Million budget deficit

Ilyhanee Robles

EL PASO, Texas (KVIA) – El Paso ISD is facing a projected $52.8 million budget shortfall, prompting concerns about possible staffing cuts, school consolidations, and financial oversight within the district.

District leaders said declining enrollment, rising costs, and payroll overruns contributed to the deficit. Officials reported nearly 900 fewer students than projected, reducing state funding by an estimated $6.1 million.

Consultants also recommended EPISD consider declaring “financial exigency,” a rare designation similar to bankruptcy for educational institutions.

The district’s former chief financial officer, Martha Aguirre, resigned earlier this month amid the district’s financial struggles.

EPISD leaders say they are now working on a financial stabilization plan while parents and teachers question what impacts the budget crisis could have on students and schools moving forward.

Below is a financial analysis looking into EPISD’s executive budget.

EL PASO ISD Board Brief (1)Download

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Parents react to El Paso ISD’s plan to ‘stabilize financial standing’

Carpio Griego

EL PASO, Texas (KVIA) — Following the El Paso Independent School District Board of Trustees meeting Tuesday night that detailed a plan to recover from a budget deficit of $52 million, parents share concerns of how their students stand to be directly impacted from any resulting school closures or staff cuts.

A group of parents addressed the board during Tuesday’s meeting with concerns about future campus closures to stabilize the district’s finances.

ABC-7 is asking parents if they feel confident the board will make the correct decisions for the district as well as their children.

ABC-7 has also reached out to the district’s teachers association seeking their input on proposed cuts in spending affecting the amount of teachers in schools.

This is a developing story. ABC-7 will continue to provide updates as more information is received.

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UTEP seeks attorney general ruling on ABC-7 Coliseum records request

Lesley Engle

EL PASO, Texas (KVIA) — The University of Texas at El Paso (UTEP) is seeking an opinion from the Texas Attorney General’s Office on whether it must release records requested by ABC-7 related to discussions with El Paso County about managing the County Coliseum and Sports Tourism program.

The records request follows a tip ABC-7 received involving concerns over discussions between the county and UTEP regarding Coliseum management and Sports Tourism.

The El Paso Sports Commission has also questioned whether county officials discussed a potential role for UTEP before formally opening the bidding process for Coliseum management services — a sequence the Sports Commission says could have compromised the fairness and transparency of the county’s procurement process.

The Sports Commission currently manages the Coliseum and Sports Tourism program under a contract that began in 2003 and runs through September 2027, according to Tony Rodriguez, director of events for the El Paso Sports Commission.

County Judge Ricardo Samaniego has said the court felt it was appropriate to seek new bids after more than two decades. He also said discussions with UTEP did not amount to any agreement or concessions, and that it is legal for the county to have such conversations with another government entity, such as UTEP, when considering interlocal agreements.

Records request and attorney general review

On April 28, ABC-7 requested communications between El Paso County and UTEP officials, including UTEP’s Executive Director of Special Events, Jorge Vasquez; UTEP President Heather Wilson; County Chief Administrator Betsy Keller; County Executive Director of Operations Melissa Carrillo; all commissioners; and the county judge.

We also requested reports, presentations, and memos related to the management of the Coliseum exchanged by people on that list.

In a May 11 letter to the Texas Attorney General’s Open Records Division, University of Texas System Associate General Counsel Audra Gonzalez said UTEP intends to withhold certain records while seeking a ruling, citing several legal exemptions.

Those exemptions include competitive or bidding information that could advantage a competitor if disclosed; attorney-client privileged communications; and work product materials prepared in anticipation of litigation or trial.

Additionally, UTEP’s Office of the Vice President for Business Affairs said it needs additional time to review and compile any records not exempt from disclosure—meaning it can release them without an Attorney General ruling—and expects to either release the information or provide a cost estimate to ABC-7 by June 3.

At the time the request was filed with UTEP, there was no active bidding process for Coliseum management or Sports Tourism services. The request for proposals (RFP) was not approved by El Paso County Commissioners until May 11—nearly two weeks after ABC-7 requested the records.

When a ruling is sought, the Texas Attorney General generally issues an opinion within 45 business days.

ABC-7 has written to Attorney General Ken Paxton asking him to release the records to the public.

Questions raised about discussions before formal bidding process

At a May 4 Commissioners Court meeting, the El Paso Sports Commission submitted an unsolicited bid to the county following its quarterly presentation.

Janet Vargas, president of the El Paso Sports Commission, said the commission is prepared to invest $12 million of its own funds in the Coliseum. Cory Herman, owner of the El Paso Rhinos hockey team, also spoke in support of the proposal, saying he would personally fund the construction of a new ice rink attached to the events center and, later, a new field house.

Tony Rodriguez also spoke at the meeting. He said the unsolicited bid was prompted by concerns over rumors about the Coliseum’s future management, including reports that the University of Texas at El Paso was expected to take over operations.

“When you hear it from one or two people, that’s one thing. When you hear the same thing from four people, it’s not a coincidence,” Rodriguez said on May 4.

He added that the ongoing rumors created an uneven playing field and made it necessary for the Sports Commission to submit a proposal.

During the same meeting, Judge Samaniego raised concerns with the county’s assistant attorney.

“Anna, the fact that we didn’t know anything about it and it’s out there—um—is that something we can discuss in executive session? Because that sort of throws us off, to say if there’s been a discussion about that, but it’s never come through Commissioners Court,” Samaniego said on May 4.

County Commissioners Iliana Holguin and Sergio Coronado told ABC-7 that Chief Administrator Betsy Keller informed them last year that UTEP was interested in managing the venue. They said the May 4 Commissioners Court meeting was the first time they had heard of any update or “promise” regarding UTEP being awarded the contract.

Fast-forward a week later, the court approved opening a competitive bid process for the Coliseum and the county’s Sports Tourism program.

In an interview with ABC-7, County Commissioner David Stout defended the county’s decision to pursue an RFP and said discussions with UTEP were legal and appropriate.

“We have not had any negotiations with any governmental entity, whether it be UTEP or anybody else, to enter into an interlocal with them,” Stout said on May 11. He also criticized suggestions that the county acted improperly, calling the allegations “unfounded accusations.”

Rodriguez said the commission formally submitted its proposal to county officials on May 14 after publicly presenting the unsolicited bid at the May 4 meeting. He said the commission has not received a response from the county.

Released records show months of county-UTEP communications

Previously released records obtained by ABC-7 through an April 20 open records request to the county show months of communications between County Operations Executive Director Melissa Carrillo and UTEP Special Events Executive Director Jorge Vasquez, spanning September 2025 to April 2026, about Coliseum management.

The records included discussions about meetings, lunches, and contract materials related to the venue. In one Sept. 18, 2025 text message, Carrillo proposed a “possible collaboration between UTEP and the County.”

In January 2026, Vasquez requested the current Coliseum contract to complete a report, according to the records. Carrillo later suggested he watch the Sports Commission’s Feb. 9 presentation to Commissioners Court.

Carrillo’s assistant sent Vasquez several contracts, including the Sports Commission’s management and tourism contracts, as well as budget information, records show.

County officials decline follow-up interviews

ABC-7 has repeatedly requested interviews with Chief Administrator Betsy Keller and Executive Director of Operations Melissa Carrillo regarding discussions between Carrillo and Vasquez.

Both declined through County spokesperson Desiree Gonzalez, who requested that questions be submitted in advance so they could better understand what we wanted to know. Gonzalez told ABC-7 by phone last week that all relevant information had already been discussed publicly by commissioners and the county attorney.

On Monday, we renewed our request to interview Keller and Carrillo.

In an email response to ABC-7 Monday afternoon, Gonzalez said “they will not participate in an interview,” but she provided a written statement from Keller on behalf of the county.

Keller said, in part, “Thank you for the invitation to be interviewed. Now that the RFP has been published, we will only provide a written comment. We do appreciate the opportunity to provide facts, which we hope will include a more complete story.”

Keller said the county is “committed to conducting a fair, transparent, and competitive process regarding the future management of the El Paso County Coliseum.”

She noted the current management agreement has not been competitively bid in more than 23 years, adding that Commissioners Court directed staff to explore options, including a Request for Proposals (RFP).

As part of early due diligence, Keller said staff held preliminary discussions with the University of Texas at El Paso (UTEP), but emphasized that “at no time did the County negotiate or enter into an interlocal agreement with UTEP regarding management of the Coliseum,” and that “no decisions have been made and no preferential treatment has been provided to any entity.”

She rejected allegations of wrongdoing, saying that “exploring options and gathering information prior to initiating a formal procurement process is both responsible and appropriate public administration,” and said the county will proceed with a “lawful, fair, and competitive process” focused on taxpayer value.

Keller said the Sports Commission’s contracts end this year, a claim Assistant County Attorney Erica Rosales Nigaglioni also made during the May 11 public meeting.

However, county records show commissioners approved the extensions on July 8, 2024. The documents state the agreements were extended through Sept. 30, 2027, with an effective date of July 8, 2024.

ABC-7 has asked the county about the discrepancy.

Commissioner Iliana Holguin told ABC-7 there was ‘an error in prior county correspondence’ and confirmed the contract ends in September 2027.

ABC-7 also reached out to UTEP Monday, renewing its request for an interview. We have not heard back, however, UTEP Assistant Director of Media Relations Victor Arreola declined ABC-7’s request for an interview with Vasquez last week, instead referring to a university statement. He said, in part: “We are currently unaware of any published Request for Proposal (RFP) from the County regarding the El Paso County Coliseum. If an RFP is published that aligns with UTEP’s mission, we will evaluate whether submitting a proposal makes sense for UTEP and make a decision at that time.”

Questions grow over UTEP Coliseum bid role

Brian Kennedy, an El Paso attorney who formerly directed the El Paso Sports Commission, questioned the interaction between the county and UTEP.

“You have that person who wrote the bid, will help analyze the bids, the recommendation of the bids, the negotiation of the contract, and the oversight of the contract, and all I’m going to say is anybody catching that? ‘Houston, we have a problem.’ People that scream transparency have become not exactly a beacon of transparency and my question was, what’s going on here?,” Kennedy told the county commissioners during their May 11 meeting during public comment.

Kennedy told ABC-7 that a company he founded after he left the Sports Commission would submit a bid to manage the Coliseum.

Commissioner Stout rebuffed allegations of wrongdoing.

“It saddens me, it’s disappointing to me that after so many years of having had a strong partnership with the commission, that they would come with these unfounded accusations, trying to insinuate that we’re doing something that is illegal,” said Stout. “We have not done anything that’s illegal, and it’s important, I think, for us to point out that it’s inaccurate.”

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Summer shuttle takes travelers to Elephant Butte Lake, hot springs in New Mexico

Gabrielle Lopez

SUNLAND PARK, N.M. (KVIA) — Just in time for summer holidays, the South Central Regional Transit District launched a new shuttle service to take travelers to popular destinations like Elephant Butte.

Wednesday, SCRTD said the Blue Summer Route will operate Fridays and Saturdays starting Memorial Day weekend through Labor Day. The shuttle will run from 8 a.m. to 8 p.m. with departures every 45 minutes.

The shuttle will run May 23 to Sept. 1, SCRTD said.

The seasonal shuttle connects popular tourist places like Elephant Butte Lake, Truth or Consequences and the Hot Springs District in Sierra County.

According to the SCRTD’s website, there are fare-free rides until June 30.

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El Paso County attorney addresses rising solar panel scams

Gabrielle Lopez

EL PASO, Texas (KVIA) — There’s a rise in solar panel scams affecting El Paso families, the county attorney said Tuesday. Wednesday, the Texas RioGrande Legal Aid talked about how to identify and report solar panel fraud and invited an El Paso woman to share her experience with a scam.

County attorney Christina Sanchez said the scams impact seniors and residents with fixed incomes. Speakers said Lorena Vargas, a customer, is a grandmother.

She’s countersuing Cross River Bank, which speakers said worked with Titan Asset Purchasing LLC and Sunlight Financial LLC, for a lawsuit alleging she owes more than $100,000 in debt for solar panels. Vargas said she never asked for a loan and doesn’t own solar panels.

Wayne Krause Wang. the lead attorney in Vargas’ case, said the counter-lawsuit alleges Cross River Bank has a history of failing to maintain reliable lending practices. He said Vargas is asking the court to void all solar panel debt against her, stop the businesses from illegally collecting debt she never asked for and seize all “negligent, deceptive and misleading” acts by Cross River Bank against the people of El Paso.

“I got so surprised. My emotions are inside of me. I have to deal with that. I have to fight with that,” Vargas said at the press conference.

She also said she never considered adding solar panels to her home since her electricity is cheap.

County attorney Christina Sanchez said scam victims can file a complaint at her office regardless of where a business is from; she said the work must be planned to be done in El Paso County. In Vargas’ case, Cross River Bank is based in New Jersey.

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El Paso ISD shares financial stabilization plan amid $52 million budget shortfall

Gabrielle Lopez

EL PASO, Texas (KVIA) — The El Paso Independent School District shared an update on its financial status Tuesday at its Board of Trustees meeting. Officials said the district faces a “financial shortfall” tied to rising costs, less enrollment-related funding, inflation, state funding changes and previous budget projections.

The update comes as a public school consultant recommended EPISD declare financial exigency, which is similar to bankruptcy for educational institutions.

Officials also noted part of the struggle comes from weak financial systems, internal controls and operational processes. EPISD said it’s reviewing and strengthening those elements to stabilize the district.

Right now, the district estimated a funding gap of $52 million for the current year, including a $6 million deficit from the 2025-26 budget, the district said.

During Tuesday’s meeting, district leaders listed immediate and long-term strategies to improve EPISD’s financial standing. Some include:

Operational efficiencies

Restructuring central office

Cost containment efforts

Multi-year financial planning

According to the consulting firm MoakCasey, a majority of the deficit came from a loss in revenue that was not anticipated. The two major factors came from declining attendance and enrollment.

MoakCasey also said the budgeted expenditures were overran by about $21 million. A lot of that came because purchases were made without board approval.

EPISD said it’s also working with an external and internal auditor to review and develop a recovery plan and to figure out what exactly happened for this to occur.

Superintendent Brian Lusk said the district’s goal is to “introduce controls and processes that have been lacking in order to build a stronger and more sustainable financial foundation.”

The district is also looking for interim financial leadership since its chief financial officer resigned May 7.

Lusk said after the meeting that they hope they can start to finalize a plan in the next two weeks. They have until the end of June to finalize a budget for the 2026-27 school year and if they go with the currently constructed one, they would enter with a $42 million deficit and just 11 days of unassigned funds left.

Lusk said they have to make “drastic” changes but did not specify what that could entail.

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El Paso ISD may declare financial emergency, large-scale layoffs after review puts budget deficit at $52.8 million

El Paso Matters

by Claudia Lorena Silva

A public school consultant is recommending that the El Paso Independent School District declare financial exigency — similar to bankruptcy for educational institutions — and initiate a stabilization plan that could include mass layoffs in the face of an unexpected budget shortfall for the current school year.

EPISD officials said the district is on track to spend $52.8 million more than it will make in revenue for the 2025-26 school year, after discovering significant systemic issues in how it was tracking its finances, the school board was told Tuesday. 

The $547 million budget adopted by the school board in June 2025 had called for a $6 million deficit, to be covered out of the district’s reserves. The budget was developed by then-Superintendent Diana Sayavedra, who resigned that month when it became clear she didn’t have support from a majority of the school board.

“El Paso Independent School District is currently experiencing significant structural financial pressure resulting from recurring expenditure growth outpacing recurring revenue growth over multiple fiscal years,” according to a presentation to the board by MoakCasey, an Austin-based public school consulting firm the district hired to conduct an audit this month. “Analysis conducted during this engagement indicates that the district’s current financial condition reflects both immediate operational pressures and longer-term sustainability concerns requiring accelerated corrective action.” 

The presentation recommends that the district declare financial exigency, a rare declaration by a school district that its financial resources can’t support its instructional programs or finance the full compensation of staff for the current or next fiscal year. 

EL-PASO-ISD-Board-Brief-1Download

The auditors didn’t specifically mention layoffs, but it is clear that they believe such a step will be necessary. The district’s payroll in 2025-26 exceeded the budgeted amount by nearly $22 million, auditors found. 

They recommend the district “establish clear, quantified budget reduction goals for the 2026-2027 fiscal year – grounded in recurring revenues, not one-time fixes.”

Without significant changes to its spending, the district could nearly deplete its savings by the end of the next school year, according to the presentation.

Superintendent Brian Lusk and Deputy Superintendent David Bates briefed the school board and the public at the meeting on the causes of the overspending and its implications.

In an interview with El Paso Matters ahead of the board meeting, Lusk said EPISD’s former chief financial officer, Martha Aguirre, who resigned earlier this month, deliberately withheld information on the budget from the superintendent and school board.

“We were not given accurate information or data to tell us where we stood. We were not neglectful and were really aiming at understanding. Just weren’t given clear information as to where we were,” Lusk told El Paso Matters.

Aguirre, who officially resigned May 6, did not respond to El Paso Matters’ request for comment. She served as interim superintendent last year before Lusk was hired in December.

READ MORE: Martha Aguirre, former El Paso ISD interim superintendent, resigns as CFO as district finds ‘key financial challenges’

District leaders initially told El Paso Matters they were expecting a $38.7 million deficit, which ballooned to $52.8 million after MoakCasey did more analysis.  

This is expected to wipe out half of the district’s savings, reducing its unassigned fund balance from $101 million to $49 million, leaving it with enough funding to keep running for about 38 days in an emergency.

The district estimates that without significant expense reductions, it would run a $42 million deficit for the 2026-27 school year, which would dwindle its savings down to $6 million, or enough to run for less than 12 days.

Texas school districts need enough reserve funds to run for at least 75 days to get an A in the Financial Integrity Rating System of Texas. Districts that get a failed rating multiple years in a row risk losing their accreditation.

Stabilization plan

The district’s financial issues are the result of “the cumulative impact of delayed intervention, fragmented accountability, unrealized budget assumptions, recurring expenditure growth, and insufficient alignment between operational decisions and long-term financial sustainability,” according to a brief from MoakCasey provided to the board.

One issue identified by the auditors is that employee salaries make up about 87% of EPISD’s operating expenses, giving the district little wiggle room for cutting costs. The district’s payroll expenses exceeded its revised budget by about $21.8 million, according to the presentation.

It also noted that the district’s self-funded health insurance program had become unsustainable and was relying on spending from the general fund to stay afloat.

El-Paso-ISD-Fin-ReviewDownload

To get EPISD’s finances back under control, MoakCasey recommended the district enact an immediate financial stabilization plan in the next 90 days to cut spending and commit to a long-term recovery plan that outlines its goals for the next five years.

As part of the plan, the firm recommended EPISD declare financial exigency, tighten its restrictions on spending, and review its staffing needs to align them with enrollment trends and the district’s ability to pay for them.

MoakCasey also recommended that the district adjust its health insurance program to ensure it is self-sufficient and does not need money from the fund balance to stay afloat, which could lead to increases in employees’ contributions and premiums.

‘Things that didn’t add up’

EPISD officials told El Paso Matters they were unaware of the skyrocketing deficit until Bates took over as interim chief financial officer May 8, two days after Aguirre resigned. Like Lusk, Bates came to EPISD from Dallas ISD.

Bates said the deficit increased because fewer students enrolled than were projected in the budget, and because the initial budget was adopted with incorrect assumptions about savings from vacant positions. He did not give specific details in an interview with El Paso Matters.

“We discovered that we were adopting a budget at the beginning of the year with some carryover money, with lapsed salaries, and with some amendments to staffing. The (actual) revenues and the expenditures just didn’t align. Also, the amount of kids we budgeted for, we didn’t quite get,” Bates said.

Lusk said there were also instances when employees were hired, and changes were made to the budget without first going to the board for approval.

The outside auditors found the district spent $11.2 million that was not accounted for in the budget. This includes almost $3 million in health savings account distributions, $2.4 million for changes in special education staffing guidelines, $681,000 to give employees an incentive to give an early notice of their plans to retire or resign, and $477,000 for leadership changes, among others.

They also found that the district budgeted $10.3 million in savings that were never realized.

The 2025-26 budget approved by the school board included a projected enrollment of 47,121, a decline of about 1,000 students from the prior year. That was in line with enrollment declines in recent years, according to enrollment data reviewed by El Paso Matters.

But the district’s actual enrollment this school year was 46,244, a decline of almost 1,900 students, according to state data released in March.

(Courtesy: El Paso Matters, Flourish)

Because state aid is tied to student enrollment, the decline of almost 900 fewer students than budgeted reduced state aid by $6.1 million from what the district budgeted, according to El Paso Matters’ calculations.

The actual trends on key budget drivers like enrollment and expected payroll savings from vacant positions were known by the fall of 2025. Usually, school districts make mid-year budget changes to adapt to actual figures, but that didn’t happen in EPISD, Bates said.

“So there’s a lot of things that didn’t add up throughout the course of the first semester, prior to us arriving, that would be typical for any district that they could kind of right the ship along the way. Well, the ship kind of went off course,” he said. 

Bates said the new district leadership had focused this spring on developing a budget for the 2026-27 school year and didn’t see a need to examine the current year’s performance “based on the numbers that we were receiving in senior staff meetings.”

After Aguirre resigned May 6, Bates said he looked at the numbers for the current school year and discovered the huge emerging deficit. 

District officials said the 2026-27 budget likely won’t include pay raises. 

EPISD Board President Leah Hanany said multiple factors played a role in the exploding deficit.  

“I don’t think that you can put this on any one person in the organization. There must have been multiple people who were aware. So, there is definitely a systems failure and control somewhere that we expect to be addressed as a board,” Hanany said.

Hanany said the board chose Aguirre to serve as interim superintendent as the district transitioned leadership because they wanted someone who could focus on balancing the budget.

“The impetus for choosing the CFO at the time was because there could be somebody in the interim role that had the natural capacity to understand the finances,” she said.

Bates said the district hoped to chip away at the deficit by selling some of its land and buses and taking in grants before the end of the fiscal year on June 30.

SEE ALSO: EPISD weighs November bond election to upgrade schools amid school closures, tight budgets

Despite these newly discovered budgetary challenges, EPISD plans to ask voters to approve a nine-figure bond issue in November to improve its aging facilities and upgrade outdated air conditioners.

Voter approval of a bond issue could increase property taxes for homeowners and commercial properties. Lusk said the district will need to be transparent with voters about the district’s financial challenges and its need for improvements.

“We want to be open and upfront about what our financial landscape is. I think if we keep demonstrating that consistently over time, while not everything will be perfect, the community will realize that we will be honest about where we are,” Lusk said.

This is a developing story and will be updated.

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