ALTO, Texas (TXAN 24) -- Our newsroom has received a copy of an annual financial report for Alto ISD with a $1.6 million deficit, marking a troubling financial turn for the district. While they still have $3 million in reserves, their spending habits and growing liabilities raise serious questions about the district’s long-term stability. If this trend continues, state intervention from the Texas Education Agency (TEA) may not be far off.
Where Did the Money Go?
According to the district’s annual financial report on August 31, 2024, Alto ISD spent $12.99 million while only bringing in $11.37 million—a gap of over $1.6 million. Among the key concerns:
General fund reserves dropped by $906K in just one year.
Pension liabilities jumped 64%, adding more financial strain.
A mysterious “extraordinary item” of -$129,250 appeared in the budget with no clear explanation.
The district transferred $144,248 from the general fund to a daycare program, raising questions about priorities.
How Long Can They Keep This Up?
For now, the district can still function because it has reserves and ongoing state and federal funding. But if they keep losing money like this next year, the financial cushion could disappear quickly.
The Texas Education Agency (TEA) hasn’t flagged Alto ISD for financial distress—yet. In fact, their last Financial Integrity Rating System of Texas (FIRST) score was a strong 96/100.
However, this deficit won’t go unnoticed if it continues. If the situation worsens, TEA could send a financial monitor, appoint a conservator, or even take full control of the district’s finances.
What Happens Next?
The big question now is whether district officials will take action to fix this before the state steps in. Will there be cuts to staff or programs? Will they raise taxes to make up for the shortfall? Or will they simply let the problem grow until the TEA forces their hand?
For Alto ISD parents, teachers, and taxpayers, this is a situation to watch closely. If this trend continues, the financial crisis may no longer be avoidable.
Stay with TXAN 24 News for updates as we continue to track Alto ISD’s financial situation.
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