Austin ISD trustees approved a fiscal year 2023-24 budget with a projected $52.25 million shortfall during a board meeting June 22 that ran into the early morning hours of June 23. This is the largest budget shortfall approved since the 2017-18 school year.

What's happening

After grappling with alternative solutions to reduce the shortfall since Chief Financial Officer Eduardo Ramos' budget presentation on June 2, trustees made the decision to move forward in adopting the proposed budget, with an adjustment to add $500,000 to add six athletic trainers to the district. Trustees also decided to circle back early this fall to approve an amended budget with the hope that the state will approve more money for the district—ideally an increase in basic allotments. According to sections 44.002 through 44.006 of the Texas Education Code, the superintendent is required to prepare a proposed budget for the upcoming fiscal year, which must be adopted no later than June 30.

In case you missed it

Trustees approved a "historic" pay raise at a May 18 meeting, raising salaries for teachers and staff throughout the district. As a result, the district will spend about $53 million of its reserve funds to achieve the raise. The compensation package, which will begin in the fall semester, includes:

• $4 per hour across-the-board raises for all classified employees, bringing the minimum hourly wage to $20 per hour
• 7% raises for teachers, librarians, counselors, instructional coaches and special education-related positions; each employee will receive the better of the percentage increase or placement on a new step of the career ladder
• 5% raises for administrative professionals—up to high school principals and directors—and 3% increase for executive directors and above based on their salary range midpoint
• Above-market adjustments for licensed specialists in school psychology and educational diagnosticians
• Increased $7,000 stipends for a broader range of bilingual and special education teachers and staff

The breakdown

• General fund expenditures totaling $1.82 billion
• Food service fund expenditures totaling $45.5 million
• Debt service fund expenditures totaling $236.5 million
• Appropriation of $53 million from the general fund's balance for teacher and staff raises

The district's $2.1 billion budget is determined based on enrollment numbers, daily attendance and taxes. As a result, Ramos said during the meeting the budget was made with the following assumptions for the upcoming school year:

• Enrollment of 73,681 students
• Average daily attendance of 67,786 students
• Average daily attendance rate of 92%
• Property value growth at 14%
• Tax collections growth at 14%
• Collection rate of 99%
• Maximum compression rate of $0.7246
• Appraisal and collection fees growth at 4%

To alleviate some of the shortfall, Ramos and his team came up with a reduction plan. The plan, which would reduce the projected shortfall by about $15 million, included:

• Not immediately hiring new people to fill positions as employees retire or move on; $1 million
• Not immediately filling newly approved or vacated positions, or hiring a step down; $5 million
• Looking at different contracts and software options for the district; $1.5 million
• Potential 2022 bond savings; $5 million
• Identifying and eliminating inefficient costs; $1.3 million
• Utilizing Title I funding, which aims to improve the quality of education for students from low-income families; $1.2 million

Other options presented by Ramos to reduce the projected shortfall included delaying investments, such as:

• The hiring of one ombudsman for $120,000
• The staffing of six additional athletic trainers for $510,000
• The hiring of six additional positions at Marshall Middle School for $250,000
• The issuing of paper report cards for $320,000

What they're saying

"This budget is strategically focused, and I commend you for involving the community and see that has been reflected in what you have brought to us," said Lynn Boswell, District 5 trustee and board secretary. "We are going into a deficit to make sure everyone gets a meaningful raise that will allow them to continue working in our schools. These investments are real, and I am thrilled to see it paying off already with our staffing this year."

What's next

After trustees discussed the importance of hiring six additional athletic trainers for a total of $510 million, Ramos said he will work with his team prior to meeting with trustees again in August to find the money. It is at that time trustees said they hope the Legislature will have allocated more money to the district. This would allow trustees to approve an amended budget with a smaller projected shortfall. The new budget will take effect July 1.