Texas school district says it's facing financial emergency - KXXV Central Texas News Now

Texas school district says it's facing financial emergency

CROSBY, Texas (AP) - A Houston-area school district has declared that it's facing an official financial emergency, becoming the 16th district since 2012 to inform the state it's facing such a crisis.

Trustees for Crosby Independent School District adopted a resolution Monday that established the financial emergency and the need to cut staff.

The Houston Chronicle reports that the district of 6,000 students needs to cut at least $5.5 million through layoffs.

Administrators learned the depth of the problem in June when a new chief financial officer found "cash-flow issues" relating in part to construction spending.

Declarations of a financial crisis have been rare since 2011, when the state created tougher standards for districts to qualify.

They must meet one of five criteria, including losing 20 percent of a district's fund balance.

Information from: Houston Chronicle, http://www.houstonchronicle.com

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