ETOILE, Texas (KETK) – Etoile ISD will consolidate with Woden ISD, effective July 1.

Etoile ISD, which is a small district with approximately 90 students, was reportedly in financial trouble. The consolidation with Woden ISD was mutually agreed-upon, Texas State Board of Education Chair Keven Ellis said.

According to a release from Etoile ISD, they have experienced a 44% drop in enrollment since FY 2018. A “significant number” of students have transferred to neighboring districts in recent years, majority of whom have gone to Woden ISD.

They’ve had a few problems effect their finances, including a property value issue.

“Another issue that has affected our finances in FY 2021 is that our Locally Certified Property Values from the Nacogdoches County Appraisal District were not in line with the State Comptroller’s values which resulted in an invalid property study finding,” according to Superintendent Sarah Hottman.

The Nacogdoches County Appraisal District appealed to the state on their behalf, but reportedly lost the appeal. That created a gap in funding, as the district collects taxes based on the appraisal district’s values but the state funding for the district is based on the State Comptroller’s values.

“Unfortunately, we received notice from the State Comptroller’s Office in January that FY 2022 would also be funded based on the State Comptroller’s values as we once again received another invalid property study finding,” according to the district.

The district filed another appeal, they said. They then reached out to TEA in early October with concerns about the future of the district, looking for a possible resolution to their issue. TEA reached out to Woden ISD in January of 2022.

Based on TEA guidance, Woden ISD passed a resolution at a meeting on Feb. 17 to consolidate Etoile ISD into their district. TEA also advised Etoile to move forward with their consolidated.

“I sincerely believe consolidating with Woden ISD is the best option for our students,” Hottman said in a letter. “It is still a small-school setting and our students will have many opportunities at WISD.”

Hottman said that they have not discussed their situation at school in the classrooms or around students yet, as they wanted parents to be able to discuss it with their child first.

“Our goal is to send our students to Woden ISD performing at the top of their game, being the best versions of themselves they can possibly be,” Hottman said. “We do not want them to lose their focus and drive. They will still all be together, just in a different location.”

It was not made clear what will happen to Etoile ISD staff.