Independent review recognizes improved financial performance, balanced budget and progress rebuilding district reserves

Moody’s Ratings has revised Socorro Independent School District’s financial outlook from negative to stable while affirming the district’s A2 issuer and general obligation unlimited tax ratings, providing independent recognition that the district’s multiyear work to restore financial stability is producing measurable results.

In its published credit opinion, Moody’s identified improved financial management that has cut costs to attain structural balance as one of the district’s credit strengths.

Moody’s cited significantly improved financial performance in fiscal year 2026 following a period of deficit spending. The agency also recognized substantial expenditure reductions, a projected addition of approximately $4 million to fund balance, adoption of a balanced fiscal year 2027 budget and a $5 million reduction in annual cash-flow borrowing.

“This is an important milestone for Socorro ISD and for the community that has held us accountable throughout this process,” Socorro ISD Superintendent James P. Vasquez said. “We heard clearly from our community that the first step, before asking taxpayers to consider any additional revenue, was for the district to take care of what it could internally. That meant making difficult reductions, strengthening financial controls, aligning spending with enrollment and demonstrating that we could operate within a balanced budget.”

“Moody’s independent assessment shows that work is on track,” Vasquez continued. “It does not mean the work is finished, but it confirms that the difficult decisions and shared sacrifices made throughout the district are moving Socorro ISD in the right direction.”

Over the past two years, Socorro ISD has taken significant steps to address its financial challenges, including reducing recurring expenditures, significantly reducing central administrative staffing, strengthening budget and position controls, redesigning the district’s employee healthcare plan and more closely aligning staffing and operations with enrollment. Throughout the process, the district has remained focused on protecting classroom instruction, student programs and essential services as much as possible.

Vasquez credited Chief Financial Officer David Solis and the district’s Financial Services team for helping lead the work.

“Mr. Solis and the entire finance team have provided the disciplined leadership, careful stewardship and transparency necessary to restore confidence in the district’s finances,” Vasquez said. “This progress also reflects the Board of Trustees’ willingness to make difficult decisions and maintain a long-term focus on restoring financial stability, as well as the efforts of employees throughout the district who helped carry out that work.”

Moody’s stable outlook reflects its expectation that Socorro ISD will continue managing its finances prudently while rebuilding fund balance, reducing its reliance on annual cash-flow borrowing and adjusting expenditures as enrollment changes.

While the district has stabilized its annual operations, rebuilding reserves, reducing reliance on short-term borrowing and protecting student programs will require both continued financial discipline and a sustainable long-term revenue strategy.

“We should recognize this achievement, but we must also remain disciplined,” Vasquez said. “Our responsibility now is to build on this progress and ensure Socorro ISD has the long-term financial stability needed to protect opportunities for students for years to come.”

For more information about Socorro ISD’s finances and ongoing recovery efforts, visit the district’s Our Financial Story webpage at sisd.net/ourfinancialstory.