Austin ISD Seeks Property Tax Increase to Fund Staff Pay Raises Amid Budget Shortfall

Austin ISD Proposes Property Tax Increase to Support Staff Pay Raises

AUSTIN, Texas — In a recent announcement, Austin Independent School District (AISD) Superintendent Matias Segura shared that if voters approve Proposition A, a significant portion of the district’s employees could see a pay increase. According to Segura, 85% of staff would receive raises if the proposition passes during the upcoming election.

Impact of Proposition A

The proposed measure involves a property tax hike that would add about $34 a month for the average homeowner in the district, based on an estimated home value of $553,493. Homeowners who qualify for the over-65 exemption will not be impacted by the tax increase.

Segura highlighted that the proposed raises range from 1.4% to 7.3%, depending on the years of experience an educator has. The school district has released a new pay scale that reflects these increases. He emphasized the financial pressures facing the district, noting, “You think about bread, you think about fuel, all of these things … Well compound that given the size of our organization 3-5% every year. That’s $30-50 million.”

Financial Challenges Facing Austin ISD

Despite the potential benefits of Proposition A, the school district is currently grappling with a $92 million budget shortfall. This deficit is largely attributed to insufficient support from the state government. Segura stated, “There isn’t a way to cut your way out of the deficit.”

The proposition aims to generate an additional $171 million annually for the district if approved. However, due to a policy known as recapture, which redistributes funds from wealthier districts to those less financially stable, AISD would retain only about $41 million of that amount.

Opposition to Proposition A

Recent criticism of Proposition A has emerged. On October 18, a group of ten former AISD trustees expressed their concerns in a letter shared on social media. They wrote, “The district may be on the brink of financial exigency without a major shift in funding streams, but this proposed tax rate increase won’t fix the problems.” They argued that the tax hike would come at a “very high expense to taxpayers” with “minimal benefit to students, the district, or public education as a whole.”

The Travis County Taxpayers Union also aligns against Proposition A, as they express worries about rising property taxes while student enrollment is declining. Don Zimmerman, a former city council member and executive director of the organization, said that parents opposing the measure are aware that their children will face higher rents and taxes in the future.

Segura’s Position on the Proposition

In contrast to the critics, Superintendent Segura maintains that there is a pressing need to invest in educators, especially as many leave for better-paying jobs in surrounding suburban districts. He stated, “I am wanting to protect that as best I can with every available tool that I have, and this is one of them.” Segura views Proposition A as potentially the last chance to secure necessary funding for educators’ compensation.

Budget Cuts and Future Financial Plans

In response to the financial difficulties, Segura announced that AISD had already cut $30 million in the current fiscal year from central administration. He noted that the 15% of staff not receiving raises primarily includes executive positions. The district is planning to make an additional $92 million in cuts over the next three years, aiming to delay the most painful measures as long as possible while hoping for state intervention.

As the voting date approaches, the community will be paying close attention to the debates surrounding Proposition A and its potential impact on the future of education in Austin.