The 2023-24 budget deficit has widened due to lower than anticipated property values and average daily attendance. This could potentially result in the district starting the 2024-25 school year with a $59 million deficit, while simultaneously exploring ways to close this gap.
District leadership has already cut $26 million from the current budget. However, without an influx of funds, options are limited to protect classrooms from the effects of budget constraints. Austin ISD is not alone in facing these challenges; inflation, ballooning recapture payments, and unfunded mandates have impacted school budgets across the state.
District 3 Trustee Kevin Foster stated, “We are living under a crisis 100% manufactured by the state. We have enough money to run two school districts this size if the state didn’t rob us by ridiculous laws that they pass.”
Three potential avenues are being considered to generate up to $60 million:
1. Additional budget reductions: A closer look at non-staffing reductions is necessary as staffing accounts for 87% of our budget. This could lead to deeper staffing cuts through attrition as vacancies arise. The district remains committed to limiting impact on campuses.
2. Real Estate Options: Capital injections need serious consideration which may involve selling or renting properties or redeveloping current properties for ongoing revenue.
3. Additional Revenue: A potential Voter Approval Tax Rate Election (VATRE) would ask the community to consider approving a tax rate that would allow Austin ISD to gain an estimated $41M in funding annually. These funds would enable investments in staff pay increases, campus support staff and replenish some of our savings during this difficult period. While this option is currently being explored, only our board of trustees has the authority to call for a tax rate election.
Moving forward, district leaders will continue identifying additional non-campus reductions before the June 20 board vote on the 2024–25 budget. Planning for the 2025-26 budget will commence in early fall to ensure inclusive conversations are included in the budget development process as more cuts are discussed.