Each June, Texas public school districts adopt operational budgets for the upcoming fiscal year. Read about two stories breaking down the budgets recently adopted by Austin and Dripping Springs ISDs.
1. Austin ISD adopts $887M operating budget
Austin ISD's board of trustees voted 7-1 to adopt an $887 million general fund budget for fiscal year 2026-27 after a late-night discussion of amendments, reversing an earlier plan that would have moved librarian positions to part-time at nearly two dozen campuses.
What’s changed
To close the projected $181 million shortfall, Chief Financial Officer Katrina Montgomery told board members the district's total reduction package now stands at $205 million in gross cuts, or a net $192 million once new costs like teacher pay raises are factored in.
The added cuts came after the district's fund balance was projected to close the current fiscal year at roughly 10% of operating expenditures, below the district's standard 20% policy and a temporarily lowered 15% floor the board approved last year.
"Unfortunately, if we do not do this and if we do not bring a budget forward that is, A, approved, and B, begins to improve the fund balance, we run a real risk when it comes to our ability to serve our students in a way that aligns with who we are as an organization,” AISD Superintendent Matias Segura said. “It's unfortunate. It's sad. It's disappointing. It's happening everywhere in the state of Texas.”
Going forward
According to a district announcement, the adopted budget includes $1.48 billion in revenue from Austin taxpayers and $630 million sent to the state through recapture.
2. Dripping Springs ISD OKs $104M budget
The DSISD board of trustees approved the fiscal year 2026-27 budget at a June 22 meeting.
The big picture
The FY 2026-27 general operating budget includes $104.49 million in expenditures and a net shortfall of $1.98 million, a decrease from the current $2.04 million deficit. Payroll is the largest expenditure by object, accounting for 79.97% of district spending, compared to 83% in FY 2025-26.
The district estimates spending $4.75 million in state recapture, which collects excess local tax revenue from some districts and redistributes it to “assist with the financing of public education for all school districts,” according to the Texas Education Agency.
