Austin ISD proposed 2019 budget includes salary increase despite $28.5 million deficit

Executive Director of Finance David Edger and Director of Budget and Planning Travis Zander present the Austin ISD budget at a meeting May 21.

Executive Director of Finance David Edger and Director of Budget and Planning Travis Zander present the Austin ISD budget at a meeting May 21.

Austin ISD could run at a $28.3 million deficit in fiscal year 2019, based on a presentation to the district’s board of trustees Monday about the recommended budget.

Recommended budget expenditures for FY 2019 will total $1.6133 billion, while revenues will total $1.5847 billion, according to the presentation.

If approved, the recommended budget includes a 1.5 percent increase for regular, part-time and full-time employees that will cost the district $8.1 million.

AISD Executive Director of Finance David Edger and Travis Zander, director of budget and planning, presented the information.

The board could vote to approve the budget after a public hearing in June.


Expenditure breakdown


Recommended general fund expenditures—which cover general district operations, salaries, maintenance, educational materials and state recapture payments—will total about $1.44 billion.

“We wanted to highlight that we have given raises [each year] since the 2014-15 school year and we are recommending that we continue that trend with a 1.5 percent raise,” Zander said. “One of the benefits that AISD is unique to is paying into social security, which has cost the district an estimated $33 million a year. This is a continued investment the district is making and it is something that is a major part of our budget.”

An anticipated $669.6 million will be paid to Texas in recapture payments, which is about $123.6 million higher than the $546 million the district will pay for recapture in fiscal year 2018. Recapture payments will make up 42 percent of the district’s total budget, according to the presentation.

“Austin Independent School District has the distinct honor of being the single-largest payer of recapture of any district in the state of Texas,” Edger said.

With 52 percent of property taxes collected by the district expected to go to the state, he said FY 2019 will be the first AISD has given back more than it has been able to keep. That number could rise to 60 percent in the 2020s, he said.

Non-general fund expenditures include about $41 million dedicated to food service and $128.2 million that will be used to pay back district bond debt.





Revenue breakdown


According to the presentation, anticipated district general fund revenues for FY 2019 include:
• $1.31 billion in local tax revenue, an increase of $104.3 million compared to FY 2018.
• $78.4 million in state funding, an increase of $15.8 million compared to FY 2018.
• $24.2 million in federal funding, a decrease of $3.8 million compared to FY 2018.




MOST RECENT

Renderings show plans for a transit station as part of Capital Metro's Project Connect. (Rendering courtesy Capital Metro)
Changes to Project Connect plan add $60 million to local cost estimate

Capital Metro Board Chair Wade Cooper called the upcoming June 10 meeting to finalize the technical aspects of the plan "one of the most consequential votes this board has taken in its history."

A photo of two women walking on a trail with a quote from the story
Traditional summer outings may look different in Southwest Austin under COVID-19 guidelines to promote health, safety

Frome trails and parks to camps and water parks, here is what to expect from summer activities and destinations this season.

texas-reopening
LIST: What is open, closed in Texas and how businesses can operate

Texas openings are staggered with different opening dates and operating limits.

Lost Creek Limited District will begin charging a fee to enter at its entrance to the Barton Creek greenbelt. (Amy Rae Dadamo/Community Impact Newspaper)
Lost Creek board explains decision to charge fee for access to its entrance at Barton Creek greenbelt

Following a May 13 meeting during which Lost Creek Limited District officials voted unanimously to begin charging nonresidents to access the greenbelt from the Barton Creek low water crossing entrance point, board members have put out information further explaining their decision.

On a nearly empty South Congress Avenue, a resident plays guitar March 25. (Christopher Neely/Community Impact Newspaper)
Unemployment rate in Travis County shoots to 12.4% in April; Austin metro jumps to 12.2%

The local unemployment rate remains below the statewide and national rates.

All patients, residents and staff at Texas' 23 state hospitals and supported living centers are to be tested for coronavirus. (Courtesy Adobe Stock)
Texas to test all state hospitals, supported living centers for COVID-19

All patients, residents and staff at Texas' 23 state hospitals and supported living centers will be tested for coronavirus regardless of symptoms or exposure.

Hays County Judge Ruben Becerra is encouraging testing for residents. (Joe Warner/Community Impact Newspaper)
MAY 23 ROUNDUP: Top stories from this week in Central Texas

Read the most popular stories from the past week of Community Impact Newspaper's coverage of Central Texas.

Mercer Street is home to the Dripping Springs business sector. (Nicholas Cicale/Community Impact Newspaper)
Dripping Springs forms committee to evaluate relief options for businesses impacted by COVID-19

The committee will create a new disaster-relief program for Dripping Springs businesses.

A photo of a "for sale" sign
Southwest Austin housing market sees significant year-over-year decrease in April

The Austin Board of Realtors released a report showing a sharp change in home sales from recent months.

Travis County has now had 2,712 total coronavirus cases reported as of May 21. (Nicholas Cicale/Community Impact Newspaper)
New coronavirus death brings Travis County total to 83

Travis County has now had 2,712 total coronavirus cases reported as of May 21.

A photo of a pink piggy bank sitting on top of three stacked books, in front of a green wall
Dripping Springs ISD financial officer says coronavirus has resulted in $600,000 loss

The district was hit most significantly with revenue losses from the district's child nutrition program.

In a letter addressed to state agencies and higher education institutions, Gov. Greg Abbott, Lt. Gov. Dan Patrick and House Speaker Dennis Bonnen said the reduced budget comes in preparation to the coronavirus pandemic’s impact on state finances expected to be felt in the coming months. (Courtesy Fotolia)
Budget cuts slated for Texas state agencies, higher education institutions in 2020-21 biennium

Texas state agencies and institutions of higher education to expect a 5% reduction in budget plans for the 2020-21 biennium as part of the state's response to the economic ramifications of the ongoing coronavirus pandemic.