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Austin ISD officials shared some preliminary reductions that may be made to the fiscal year 2026-27 budget May 5.
The proposed reductions come as the district faces a budget shortfall that has grown to $181 million for FY 2026-27.
"This has been incredibly difficult work, and we know that there are real impacts to all of these reductions," AISD Chief Financial Officer Katrina Montgomery told reporters May 7. "Ultimately, we must have a balanced budget."
The breakdown
As of May 5, AISD officials have identified $73.8 million in reductions to central and department budgets. This will include eliminating vacancies. Staff anticipates $45 million in revenue from real estate monetization, according to district documents.
"Property monetization is a short-term solution," Superintendent Matias Segura said May 7. "It does not ensure getting to a stable state."
Additionally, district officials have identified $33.9 million in proposed reductions to campus budgets. This includes new student-to-teacher ratios and increased class sizes at some campuses, updated special education and bilingual stipend criteria, and changes to technology, including software transitions.
"While we still have some work to do to fully close the gap, we anticipate limited additional impacts to campus budgets beyond what we're sharing today and will not propose eliminating librarian or counselor positions," the district website states.
How we got here
The district’s projected budget shortfall has increased from $49 million in FY 2025-26 to $181 million in FY 2026-27 due to a decrease in property values, drop in enrollment and the delay of a $26 million property sale, Montgomery said. Additionally, enrollment for AISD has declined since the 2019-20 school year, with a loss of nearly 3,200 students from last school year to this school year. In Texas, public school districts are funded based on the average number of students who attend school each day, according to previous Community Impact reporting.
Next school year, the district will close 10 campuses to remove thousands of vacant student seats and save around $20 million in expenses. District officials will also pour nearly $20 million into academic resources for 24 struggling campuses or campuses that are merging with a low-performing school. This heightened intervention, known as a turnaround plan, is required when a public school receives two or more unacceptable accountability ratings from the state, according to previous Community Impact reporting.
Going forward
Community members will have the chance to engage with district staff regarding the budget process May 9 at 11 a.m. virtually.
The timeline for the final budget decision is as follows:
