Plans for the consolidations are not yet finalized and still being discussed. Voting for school consolidation will happen in December 2025.
What you need to know
The AISD Board of Trustees discussed ways to reduce expenses following a cost savings audit presentation from Gibson Consulting Group at a March 27 board meeting.
The audit points to consolidating schools with a lower population of students than other AISD campuses as a possible option. Elementary schools with less than 500 students and middle schools with less than 750 students could be considered in the plan.
That includes an estimated 49 schools in the district to be considered, Gibson officials said. However, district officials said all 49 schools being consolidated is only a theoretical estimate that produces the maximum amount of savings, not the “realistic” amount of campuses that could be consolidated if the board approves the action.
AISD officials were unable to provide the names of potential schools that could be considered for consolidation as of press time.
If all 49 campuses were to consolidate, it’s estimated to result in total annual savings of $43.6 million dollars, including numbers from both the elementary and middle schools.
However, some district officials said the $43.6 million could be misleading, as it does not account for possible enrollment changes, such as students leaving to other schools outside of AISD. That means if the enrollment changes, the district would not benefit from the total amount of estimated cost savings.
The number also does not account for the operating costs, such as expenses for transportation, food services, school materials and more, AISD officials said.
Board President Lynn Boswell said while $43.6 million would aid in reducing the deficit, it would not solve the entire issue.
The board will vote on school consolidations in December 2025 and if approved, consolidations would go into effect the following 2026-27 academic year.
Superintendent Matias Segura said avoiding major reduction strategies is difficult with the financial situation the district faces.
“This will be a very clear, transparent process, but it’s one that we cannot avoid,” he said. “I also want to state that if we don’t do it, it will be done to us. We on the dais, our team, the administration, we know our community, we understand the risk we have to navigate.”
How we got here
The audit process started in August 2024 following the district’s continued budget woes, which include going from an projected $78 million budget shortfall for Fiscal Year 2024-25 in June 2024. Now, the projected shortfall sits at $110 million in early 2025.
Gibson officials began auditing to identify cost savings opportunities for AISD to address the projected budget deficit for upcoming Fiscal Year 2025-2026.
The audit does not list findings or recommendations, but rather possible options, or “opportunities,” to reduce expenses including school consolidations. The consulting firm conducted the audit independently, but AISD officials collaborated with Gibson to review the possible reduction strategies, according to the audit.
Pointing to consolidations as a reduction strategy comes from an analysis of school utilization. There is an average of 600 students in AISD school campuses, compared to higher numbers of students at other comparable districts in Texas, according to the Gibson audit.
There are over 25,000 open seats across the district, with middle schools having the lowest percentage of seats filled, according to district documents.
Budget background
Austin ISD points to state funding as one source of their financial strain. Other schools comparable to AISD have also had to consider major reduction strategies, such as Eanes ISD and Leander ISD, though their deficits are not as high.
However, other impacts to the budget include additional costs, impacts to reimbursements for School Health and Related Services, or SHARS, changing property value estimates and more, as previously reported by Community Impact.
For FY 2024-25, the district will need to reduce over $60 million in expenses, according to agenda documents. Some of these reduction strategies are pending, while others are already ongoing, as previously reported by Community Impact.
For upcoming FY 2025-26, the district would need to make $74.7 million to maintain a balanced budget if property values decline by 12%, according to agenda documents.
Identified savings strategies include reconfiguring transportation routes, evaluating staff contracts and more. District staff are looking at incentives for teacher and average daily attendances, reviewing software, forced reduction and more.
School consolidation plans would be finalized in the 2025-26 academic year to go into effect the following 2026-27 year if approved.
What else
Some trustees voiced concern over the impacts of consolidation, pointing specifically to previous consolidations in the district.
Trustee LaRessa Quintana said whatever path the board takes, it should be done in an equitable way.
“As a board, we have a priority to manage our budget in an equitable way,” she said during the board meeting. “I would just like to know, if it comes to school closures and consolidations, how we will make it equitable to where we don’t see it primarily concentrated in Districts 1 and 2.”
Considering previous times AISD consolidated schools, Superintendent Segura said the board’s approach to the decision needs to change.
“We will go through a process in the years past when you get to the end and then you say, ‘Okay, does this adversely impact historically underserved student groups?” he said. “The fact that you asked that question at that point and didn't consider that as part of your process creates this tension in the system that we absolutely have to avoid this time.”
Other reductions mentioned in the audit could include disposing of portables that are under-utilized, reducing senior management positions and creating school schedules that ensure teachers are teaching classes that have enough students, interest and need.
Community Impact will update this story as more information becomes available.
