To ensure employee salaries are paid through the upcoming holiday season, the Socorro Independent School District (SISD) is securing a $25.1 million loan, as confirmed by Michael Hinojosa, a Texas Education Agency conservator overseeing the district. The necessity for this loan arose due to a change in the pay schedule, transitioning from monthly to bi-weekly payments for employees, a modification demanding immediate cash availability, as reported by KFOX-TV.

This loan, officially referred to as a Tax and Revenue Anticipation Note will help the district cover its expenses until state funding is available in January. However, the district's declining enrollment has worsened its financial situation, making it more difficult to have the necessary funds available before state and tax revenue come in, as noted by Hinojosa, according to KVIA.

Under the terms of the arrangement with PNC Bank, the loan comes with a 4% interest rate which is anticipated to add around $166,000 to the repayment amount. SISD plans to settle the loan by January, possibly February, using the funds they receive from their state and tax revenue, Hinojosa remarked in a statement detailed by KFOX-TV.

The approval of this financial maneuver took place during a special SISD Board of Trustees meeting; both Hinojosa and James Vasquez, the interim superintendent, emphasized that the loan serves as a temporary fix to help the district navigate the fiscal disparities inherent in the timing of revenues and expenditures, Vasquez communicated the importance of transparency with the district's financial solutions to SISD parents, highlighting the intention to not disrupt the employees' pay schedule during the holiday period however, while the strategy is immediate, repayment is scheduled as soon as the district has available funds which will be by February 2025 at the latest, as detailed by KTSM.