Austin ISD Faces $181M Budget Shortfall
- Austin Independent School District told trustees on April 23 that its preliminary 2026-27 budget still carries a projected $181 million gap after weeks of warnings about deeper cuts to staffing, programs and campuses. - District leaders say 87% of the budget is staffing, the current year is now projected to end $49 million in the red, and employees could learn impacts by May 7. - The shortfall follows declining property values, lower enrollment and delayed real estate revenue after Austin ISD already closed 10 schools to save about $21 million. (austinisd.org)
Austin Independent School District told trustees on April 23 that its preliminary 2026-27 budget still carries a projected $181 million deficit. (kvue.com) The district also expects to finish the current 2025-26 year with a $49 million deficit, up from the $19.7 million shortfall built into the budget approved in June 2025. (austinisd.org 1) (austinisd.org 2) Superintendent Matias Segura and Chief Financial Officer Katrina Montgomery said the gap widened after property values fell more than expected, enrollment declined, operating costs rose and planned real estate deals slipped out of this fiscal year. (austinisd.org) (kut.org) District officials said 87% of Austin ISD’s budget is tied to staffing, which is why proposed fixes now reach classrooms after earlier cuts focused on central office and discretionary spending. (kvue.com) (austinisd.org) The options under discussion include campus staffing adjustments, department-level staffing reductions, a 15% cut to non-staff budgets, stipend reviews and possible program eliminations. KUT reported one draft scenario counted $24.5 million from campus staffing changes and nearly $41 million from department staffing cuts. (kvue.com) (kut.org) Community Impact reported the district discussed four scenarios with roughly $117 million to $132 million in cuts, plus about $9 million to $10 million from removing vacant positions and $50 million from monetizing three properties. (communityimpact.com) Austin ISD already voted in November to close 10 campuses for the 2026-27 school year, a move the district says will save about $21 million next year. But $17 million of that is slated to be reinvested in school improvement work at receiving campuses. (austinisd.org) The district had already cut more than 20% of central office staff, frozen external hiring and tightened spending controls before this spring’s budget reset. (austinisd.org 1) (austinisd.org 2) Segura said Austin ISD expects to present a recommended budget on May 21 and ask trustees for final adoption on June 18, before the new fiscal year starts July 1. (austinisd.org)
