CRYSTAL CITY, Texas – The Crystal City Independent School District is in a budget crisis that puts it at risk of closure or consolidation.
Interim Superintendent Richard Grill said he is doing what he can to keep employees and families in the loop by holding town halls and employee meetings. He said Crystal City ISD is $9.2 million in debt.
“The district has done a poor job managing its funds and managing its people,” Grill said.
Grill said the district got into the current debt by allocating a high percentage of its budget to staff pay, in addition to overspending the fund balance between 2020 and 2026, from $10,637,069 in the 2020-2021 school year to negative $2,700,773 in the 2025-2026 school year.
On May 19, Grill held a town hall where he announced the district’s jaw-dropping bank balance.
“On Thursday, to make payroll happen, we had less than $500 in our total bank account here,” Grill said on May 19. “That’s amazing, 500 bucks. Not even $500. So, that’s how broke the school district is.”
Then, the district was approved for a $4.5 million loan from a bank. It was enough to pay teachers but not enough to cover outstanding balances.
“Over $1.2 million worth of unpaid debt to vendors and other organizations that we do business with,” Grill said. “We’re trying to do our best to manage a bad financial situation and then also try to keep the programs for their children.”
The district already had a reduction-in-force, which was estimated to yield total annual savings of $3,285,737.
Grill also proposes pay-to-play to handle athletic finances. The pay-to-play model would require parents to pay for their students to play sports and participate in other extracurriculars to offset some district costs.
“I don’t think anybody, when it comes down to it, will enjoy having to pay extra for their child to participate in athletics or band or any other program,” Grill said. “However, the alternative of cutting athletics and cutting fine arts programs to get our budget under control is the even more bitter pill for them to swallow.”
The school board has not yet approved the pay-to-play plan, but for the district serving about 1,500 students, it is a possibility.
There will also be no pay raises next year, and the district will scale back its contributions to employee health insurance. The salary freeze is expected to save the district $534,987.
“An unfortunate situation; however, the district’s paying an enormous cost,” Grill said.
Previously, the district covered 100% of employee-only health insurance at $780 per month, Grill said.
The district plans to scale back and only contribute the state-mandated minimum of $225 per month for employee-only health insurance. This change will leave employees to come up with an additional $555 per month, and that does not include employees with families on their health insurance plan.
“It’s slightly more than $6,000 in reduced income for our employees next year,” Grill said.
The changes all stem from an effort to keep Crystal City ISD open for students and staff. According to a CCISD document, the insurance plan changes will save the district an estimated $1,873,067 annually.
“Just trying to be very honest and very transparent has been working well for me,” Grill said when asked about how he has been addressing these tough conversations. “If (families) continue to keep their children in our school and don’t withdraw to a neighboring school district, then we have a good chance of coming out of this.”
Grill said the district plans to propose a voter-approved tax rate election, also known as a VATRE, in August. This would send voters to the polls to vote on the VATRE in November.
If the VATRE passes, Grill said the district should be OK moving forward. However, if the VATRE does not pass, Grill said Crystal City ISD could face consolidation with either Carrizo Springs, La Pryor or Cotulla independent school districts.
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