Austin ISD plans for FY2015 budget

AISD Chief Financial Officer Nicole Conley-Abram presented preliminary budget documents including budget parameters and a presentation about the 2015 budget to board members at the trustees' Sept. 16 work session. She said that during the past few years, AISD has implemented about $77 million worth of cost containment strategies and budget cuts. In terms of cost strategies, she said "unpopular" options remain, such as rescinding its one-time pay adjustment for staff, facilities consolidation and boundary changes. In 2015, the district will most likely need to call for a tax ratification election, or TRE, she said.

"We could constrain spending to access reserves for another year, but it's clear to me that with escalating costs and the need to address salaries, that a TRE is in our imminent future," Conley-Abram said.

A school district must hold a TRE to raise its M&O rate above $1.04 per $100 of property valuation, according to state law. In 2008, AISD held a successful TRE and raised its M&O rate to $1.079 per $100 of valuation. The district's current tax rate is $1.242 per $100 of property valuation. Tax rates comprise two parts: maintenance and operations (M&O) and interest and sinking (I&S). The two rates are $1.079 and $0.163 per $100 of valuation, respectively. They combine to make up the current tax rate.

Trustee Robert Schneider said he agrees a TRE will be necessary.

"Still, I don't think [a TRE] is going to be the miracle that everyone would like to see I think we really need to look at any cuts that we can make along the way," he said.

Even with a TRE asking for nine cents—the maximum amount the district could seek—AISD would still need to limit spending, Conley-Abram said. She added enrollment in the district is expected to decline, and its expenditures greatly exceed what revenue will likely be.

On Sept. 30, the board is scheduled to take action on its 2014-15 budget parameters and budget development calendar.