CRYSTAL CITY, Texas – Seventy-two employees of the Crystal City Independent School District are being laid off as part of the district’s plan to prevent “imminent financial collapse,” according to a letter posted by the district Thursday.
The district filed for financial exigency with the Texas Education Agency last month after leaders realized the severity of its financial issues.
Crystal City ISD interim superintendent Grill said the cuts were “emotional and unfortunate,” but said the situation could have been avoided “by not overspending and overemploying.”
Nearly 90% of the district’s operational budget is spent on employee payroll and benefits, the letter said, which is “far above” the recommended level of about 75%.
The district said it now faces “significant debt obligations” after spending $10.6 million in reserve funds, including:
-
A repayment of a $4.5 million loan with interest to cover employee payroll through August 31
-
A repayment of a $2.7 million loan taken from the district’s Interest and Sinking & bond account
-
Reduce payroll and benefit expenses by about $3.4 million
-
Pay off $1.1 million in unpaid debt
-
Unknown costs tied to deferred facility maintenance, transportation repairs.
TheTXLoop reported that Crystal City ISD laid off 32 employees in late 2024 because of financial issues.
The district said it expects to continue implementing cost-saving measures throughout the summer.
Read also:
Copyright 2026 by TheTXLoop – All rights reserved.