Austin ISD proposes $181 million in cuts to close 2026-27 budget shortfall

Austin ISD officials released recommended budget reductions totaling $181 million for the 2026-27 school year, affecting 558 positions districtwide and resulting in community pushback ahead of a June 18 board meeting.

The big picture

Austin ISD's projected budget shortfall grew from $49 million in FY 2025-26 to $181 million for FY 2026-27, driven by a decrease in property values, declining enrollment and the delay of a $26 million property sale, according to previous Community Impact reporting.

Superintendent Matias Segura and Chief Financial Officer Katrina Montgomery presented the proposed budget for 2026-27 at a June 4 board information session, where community members delivered more than 1.5 hours of public comment.

The proposed plan would eliminate or restructure positions across the district, including 215 teaching positions and 228 vacant roles. About 55 counselor, assistant principal and librarian positions would also be affected, according to the budget documents.

“There are no good decisions,” Segura said at the June 4 session. “Every single thing that we have brought forward has been scrutinized and debated.”

Payroll currently accounts for more than 88% of the district’s budget, according to the district’s recommended department reductions.

Breaking it down

The district’s proposed reductions span central departments, campus staffing and districtwide programs, according to the reductions table.

• Operations: $9.8 million, including a 10% cut to facilities maintenance and custodial restructuring
• Special Education: $4 million, through reduced contracted services and supplemental pay
• Police Department: $5 million, including exploring a shift from sworn officers to licensed security personnel at some campuses
• Academics Office: $3.4 million, including scaling back districtwide celebration ceremonies to campus-based events
• Forced departmental reductions: $17 million in additional percentage-based cuts to all central departments, details to be finalized before the June 18 vote

The district also projects $31 million in savings through staffing reductions over the course of the school year via attrition, reorganization and enrollment-based leveling, the documents say.

The district’s recapture payment—which the state recollects for redistribution—for 2025-26 was $715.5 million, nearly half of its $1.7 billion operating budget, the documents say.

What they’re saying

The library cuts drew the most sustained opposition at the June 4 session. The plan would convert 23 full-time librarian positions to part time at campuses with fewer than 400 students enrolled.

Boone Elementary librarian Sunny Steir referenced district executive hiring documents, which she said include 51 hirings between 2016 and 2023, while stating “what matters most is the students.”

Langford and Boone elementary schools enrolled 319 and 389 students in the 2025-26 school year, according to TEA.

Parents and students also pushed back on the elimination of the district's water polo program, which Debra Squires, a parent, said during public comment costs the district roughly $89,000 annually, roughly the equivalent of 14 students based on current state funding.

“Less than 15 students would have to leave the district for this reason to make that worth it,” Squires said.

In March, the district announced students from both Blackshear and the previously closed Oak Springs Elementary would eventually relocate to a modernized Oak Springs campus slated to open in 2028.

Marcus Charles, the father of a Blackshear student, said his family moved from Maryland and enrolled his son at the school specifically because of what it represented.

"Austin is a diverse city in some parts, but it's still predominantly white," Charles said. "At Blackshear, my son sees children who look like him. He sees teachers and staff who look like him. He sees a school community that reflects the diversity of the real world."

Eric Ramos, who taught history at Martin Middle School before its closure, questioned whether executive-level staffing had been cut proportionally.

“I don't think it's fair for certain departments to take much deeper cuts than others,” Ramos said. "How many less positions do we have at the executive director level and up compared to years before? If everyone else is getting cut, once again, we need everyone to help share this burden."

What's next

The board will hold an information session June 11 before voting on the final budget June 18. Community members can submit written comments through June 18 at 5 p.m. at www.austinisd.org.