El Paso ISD's finance chief kept a $21M overrun from her boss; hundreds lost jobs
An internal audit released by the El Paso Independent School District in July 2026 found that former Chief Financial Officer Martha Aguirre and her finance team knew of the district's worsening finances but failed for months to tell Superintendent Brian Lusk and the board. The audit found $10.3 million in planned savings never materialized and $11.1 million was spent outside the board-approved 2025-26 budget; nearly $4 million of the savings had been judged unfeasible before the budget was adopted. In December 2025 Aguirre texted two trustees, Jack Loveridge and Leah Hanany, that the deficit was nearer $11 million than $6 million; neither raised it further. Aguirre resigned in May. The board declared financial exigency in June, cutting hundreds of positions and freezing pay. Trustees said they would discuss legal options; no action has been reported. Aguirre did not respond to KVIA.
El Paso Independent School District's former chief financial officer and her team were aware of the system's worsening financial condition but failed for months to communicate the risks to the superintendent and board, EPISD's chief internal auditor said Tuesday.
Jack Loveridge, vice-president of the EPISD board, said he and president Leah Hanany were the two trustees who received communication from Aguirre about lower enrollment projections.
The audit found there were significant risks known within the financial management department, but they weren't communicated to Superintendent Brian Lusk or the rest of the board of trustees.
Hundreds of El Paso ISD employees lost their jobs after the district discovered the budget shortfall.
Trustee Jack Loveridge said the board wants to hold accountable 'those who deceived the board and the administration.'
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