Austin ISD faces increased budget deficit due to declining property values

Education
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Superintendent Matias Segura | Austin Independent School District, TX

The Austin Independent School District (Austin ISD) is facing a potential budget deficit of $105–121 million for the 2025–26 school year, according to new information from the Travis County Appraisal District. This marks an increase from the previously projected $92 million deficit over three years.

The district relies heavily on local property taxes as its primary funding source, with estimates provided by the Travis County Appraisal District. Initially, it was expected that property values would remain stable; however, current projections indicate a decline of about 9–11%. This decrease could result in a significant loss of anticipated revenue.

A larger budget deficit means savings will deplete faster unless spending is reduced. Consequently, deeper cuts may be necessary sooner than anticipated. The district has already implemented measures such as a hiring freeze, effective March 1, excluding special education staff. Additional cost-saving strategies include eliminating Central Office positions and reducing service contracts.

The board is also considering selling real estate to generate a one-time cash infusion. Moreover, they are monitoring state legislature developments concerning school funding bills that might impact the budget.

Community and staff engagement is being encouraged through upcoming budget conversations scheduled in the coming months. The next event will take place on Saturday, February 22 at 11 a.m.