Austin ISD Seeks to Cut $78 Million from Budget Over Two Years

Austin School District Battling Skyrocketing Deficit

The Austin Independent School District is in the throes of budget constraints.

The district aims to reduce its expenses by at least $78 million across the swath of two years. Superintendent Matias Segura unveiled this proposition in a school board meeting on Tuesday. This action plan intends to curb the surging deficit without crippling the functioning of the schools.

Higher Tax Rate Proposal

The school board is contemplating these budget cuts while also considering the potential necessity to request voters to agree on a higher tax rate. The proposed increment is almost 9 cents per $100 property valuation, increasing from the current 85.95 cents per $100 of property valuation to 95.05 cents in the upcoming school year.

This proposed tax hike, along with other strategic budget cuts, aims to dent the $78 million deficit by $48 million in the school year ahead, as stated by Jacob Reach, the district’s chief of governmental relations and board services.

Approach for Budget Reductions

Despite facing this challenging task, district staff members are yet to produce a detailed list of specific proposed cuts. In Tuesday’s meeting, Segura presented the board with a long list of potential measures like smaller class sizes, trimming career and technical programs at middle schools, eliminating nurses, or cutting certain social services.

In order to make informed decisions and maintain transparency, the district plans to form a committee which will discuss potential future cuts. Moreover, they will seek public feedback extensively over the coming months. The board members will eventually decide on the proposed reductions.

Impact and Reactions

The prospect of significant cuts has been met with heavy hearts, as the district may have to endure substantial alterations.

Board President Arati Singh earnestly stated: “We’re going to have to make a whole bunch of terrible cuts, and we’re going to do it in the way that’s the most humane and will cause the least harm, but they are going to happen.”

These reductions could potentially result in dramatic modifications to the district, as suggested by Andrew Gonzales, a board member from District 6 and a former classroom teacher.

Potential Tax Rate Election

The district may prompt an election as soon as Aug. 8, asking voters to approve a hike in the property tax rate for the 2024-25 year. If approved, this would decrease the projected deficit from $98 million to $78 million within a $1.2 billion budget. However, an overwhelming $130 million of the $171 million generated by the elevated tax rate would be channeled back to the State under a program called recapture. Kevin Foster, the Vice President, expressed his frustration for having to collect money from their residents only for a majority of it to be sent back to the State.

Grasping at Straws: The Harsh Reality of School Financing in Texas

Many district leaders across Texas blames the Legislature for neglecting to pass any significant increase in per-student spending during its 2023 session. The inflation-adjusted per-student financing has seen a drop from its amount four years ago, which is a grim reality amidst the rising inflation rates.

As the district faces these challenging times, it intends to hold virtual information sessions for gathering feedback from staff and residents about the tax rate election in early August.