Austin: Navigating $30 Million Budget Deficit to Improve Education
As the Austin Independent School District (AISD) stares down a daunting budget deficit of $30 million for the 2024-2025 academic year, the school board members are in discussion over a potential rate increase for property taxes. The intention behind this proposed adjustment is to augment employee income and hire more workers on campuses throughout the district.
School districts throughout Texas are wrestling with budget shortfalls. Much blame is being pointed towards the state lawmakers for their alleged neglect in bolstering public education funding to deflate mounting inflationary expenses.
Education Budget Tied to School Voucher Legislation
Lawmakers, under the watchful eye of Governor Greg Abbott last year, have linked the hike in education expenses with the endorsement of school voucher legislation. Such a program is intended to utilize public funds to underwrite private school tuition costs. However, a combination of Texas House Democrats and rural Republicans Dave “denied” school choice, expressing their fears over this program draining public schools of their vital resources.
The Proposed Austin District Tax Increase
The tax rate proposal under consideration entails an increase over the current rate of 85.95 cents per $100 of property value to 92.87 cents. Alternatively, the district could decide to reduce the tax rate to 83.77 cents. This would mean the annual tax bill for an average property owner, with a house valued at $563,069, would amount to $4,300 or as low as $3,879 annually, depending on the final rate.
If the new, higher tax rate is approved by voters, the district will be able to scrape an extra $44 million for its operating budget of $956 million, according to the district officials. Securing residents’ approval is a must as this proposed tax rate is over the limit that the district is otherwise authorized to set.
Addressing Budget Challenges and Potential Cuts
Superintendent Matias Segura conveyed during a recent school board meeting that careful consideration will be given to all potential options for revenue generation prior to resorting to dreaded service cuts for student classrooms. “I have a hard time cutting really, really deep until I know our community won’t support this,” Segura said.
Presently, the district has planned out $30.4 million in cuts for next year’s budget, including reductions in contracted services, overtime expenses, and the elimination of unfilled administrative office positions. Even with these cutbacks, a deficit of $30 million is expected.
If the higher tax rate is approved by voters, projected for the November ballot, the district could use the additional funds to provide teachers and librarians with a 3% wage increase, hire instruction coaches for all campuses, registrars for elementary and middle schools, and offer other staff members a 1% compensation raise, among various other compensation enhancements.
Education Austin Advocates for Higher Pay
Members of Education Austin, the representative group for district employees, rallied outside the district headquarters before the latest board meeting, calling for paramount consideration of higher pay in the budget. The landmark $64 million investment for staff pay raises last year was an encouraging first step; however, the district remuneration is still significantly lower than the region’s average salary.
Keeping the Lights On: A Tough Pill to Swallow
Despite the district’s monetary challenges, the projected $44 million in additional revenue from a higher property tax rate would only be about 25% of what this tax hike generates. This year, the Austin district relayed $659.9 million, over 41% of its general funds, in recapture payments to the state. The recapture program redistributes property tax funds from districts with high property wealth to those with lower resources.
This delicate financial situation prompted District 1 Trustee Candace Hunter to question how the district will continue to “keep the lights on and keep the doors open.”
A tax rate vote might just be a sensible solution to evade deep-seated cuts, Hunter added.