CRYSTAL CITY, TEXAS — Crystal City Independent School District in Texas had less than $500 in its total bank account on May 19, 2026, as it faced a $9.2 million debt crisis. The district’s fund balance dropped from $10,637,069 in the 2020–2021 school year to negative $2,700,773 in 2025–2026.
The district was approved for a $4.5 million bank loan and owes more than $1.2 million to vendors and other organizations. Interim Superintendent Richard Grill said, “The district has done a poor job managing its funds and managing its people.” He added, “On Thursday, to make payroll happen, we had less than $500 in our total bank account here. That’s amazing, 500 bucks. Not even $500. So, that’s how broke the school district is.”
Emergency cost-cutting measures include a reduction-in-force projected to save $3,285,737 annually, a freeze on employee pay raises saving $534,987, and a reduction in the district’s contribution to employee-only health insurance from $780 per month to the state-mandated minimum of $225. The change shifts an additional $555 monthly cost to staff and is expected to save $1,873,067 per year.
Grill proposed a pay-to-play model requiring families to pay for student participation in athletics and extracurricular activities, though the school board has not yet approved the plan. “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. 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,” he said.
The district plans to propose a voter-approved tax rate election in August 2026, with a vote scheduled for November 2026. If voters reject the measure, Crystal City ISD could consolidate with Carrizo Springs, La Pryor, or Cotulla independent school districts.