Katrina Montgomery, Interim Chief Financial Officer
Austin Independent School District
Austin Independent School District
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The Board of Trustees Monday voted to put a tax rate election on the Nov. 5 ballot.
Why it matters: A tax rate election gives the community the option to vote for increased funding to pay for teacher and staff raises and additional support positions for campuses.
By the numbers: If approved, Austin ISD would gain an estimated $41M in funding annually.
A homeowner of an average value of $550k in Austin would see a monthly increase of about $34 in Austin ISD property taxes, or roughly $412 per year.
What they’re saying: “We are the largest provider of public education in Central Texas. Eighty-one percent of the students in Austin come to Austin ISD, and we have a responsibility to educate our students in a way that aligns with our community values,” said Superintendent Segura.
What’s next: Before the November election, the district will look at every aspect of how we do business and identify opportunities to streamline operations to reduce cost and stabilize the budget.
Austin ISD families, staff and community members provided feedback this week on a Voter Approval Tax Rate Election ahead of a possible vote to put the issue on the November 2024 ballot.
Why it matters: The district is considering calling for a tax rate election to raise funding for Austin ISD’s schools and students in the face of a $78M budget deficit for the 2024–25 school year.
In case you missed the conversations, here’s what we heard and how we answered:
How much more money would benefit Austin ISD if voters approve a tax rate election?
How does Austin ISD plan to use the additional $41M?
About $17.8 million will be spent on a compensation plan that includes market adjustments for many teachers and staff members.
$3.2 million would be spent on additional support directly to campuses. This includes Instructional Coaches, Content Interventionists, Special Education support and Mental Health support. These allocations would be made based on the current enrollment and the student needs of each campus.
About $20 million would be used to offset current costs to replenish our savings and stabilize the budget.
How will a VATRE affect the average homeowner’s school taxes?
What’s next: The board may vote to put the tax rate election on the ballot at its Aug. 15 public hearing.
The public has the opportunity to provide comment at the meeting.
The Board of Trustees met July 23 for an in-depth conversation on long-term budget planning and the possibility of a Voter-Approval Tax Rate Election to invest in our teachers and staff.
Why it matters: Our aim is to assure voters that we’ve considered every opportunity to reduce costs before asking taxpayers for additional funds to continue providing a stellar educational experience for our students.
The details: District leaders presented a comprehensive list of expenditures that the district is not legally obligated to fund, which means they could be under consideration for future cuts.
What they’re saying: “These investments that we’ve made over time are there for a reason,” Segura said. “What we wanted to do was to bring them forward, acknowledge that there is going to be a process, we’re going to have conversations, none of these are proposals, none of these are recommendations, they’re none of those things.”
The big picture: The district will rely on a joint committee to provide insight and ideas for how to reduce the $78 million budget deficit over the next two years:
What’s Next: A timeline was created for the long-range budget planning with some key upcoming dates:
Go Deeper_…_with our upcoming tax rate election community conversations.
The Board of Trustees will meet for a special information session July 23 to discuss the possible Voter-approval Tax Ratification Election and long-range budget planning.
Why it matters: Stagnant state funding and recapture payments that top $800 million have forced Austin ISD leaders to make difficult budget decisions and look to taxpayers for an infusion of cash.
Let’s go back: Last month, the board approved a $954 million budget, which includes a $78 million deficit for the 2024-25 school year.
This deficit could dwindle to $41 million with expected vacancy savings, ongoing cost reductions throughout the year and possible approval of a tax ratification election.
Staff raises and market adjustments, totaling approximately $17.8 million, would also be on the table if voters approve the tax ratification election.
The big picture: Before anyone goes to the polls, district leaders will present a plan to realign district operations to work more efficiently and better meet students’ needs. This could look like restructuring central office, reviewing staffing guidelines and adjusting campus programming and master schedules.
Tune in on AISD.TV or the Austin ISD Facebook page to hear the discussion live starting at 5:30 p.m.
What’s next: Trustees could take action to call the tax ratification election as early as Aug. 8 by adding a voting item to the Board Information Session agenda. If called, the item will be on the ballot in November.
Mark your calendars: Staff and families will have three opportunities to give feedback via Zoom before the Aug. 8 vote. Conversations will be in English and Spanish with ASL interpretation.
Noon, Aug. 6,
5:30 p.m. Aug. 7 for staff, and
6:30 p.m. Aug. 7 for community.
The Board of Trustees adopted the 2024–25 budget, totaling $954 million in operating expenses, at its June 20 Regular Voting Meeting.
The details: Austin taxpayers generated $1.69 billion in revenue for the upcoming fiscal year, which begins July 1. However, after $821 million is sent to the state’s recapture program, the district will operate with a $78 million deficit for the 2024-25 school year.
What they're saying: "It’s really important that we do everything we can to communicate to our community that we’ve become as efficient as we can be without adversely impacting the classroom to the best of our ability," said Superintendent Segura. "We know there is going to be an impact — I want to be very clear with the scale that we’re talking about."
Of note: The 2024–25 budget does not include funding for staff pay increases. Any pay increases, including market adjustments, would need funding through a successful VATRE or other new revenue sources. All the details are outlined in a plan created in consultation with Education Austin.
How we got here: The final budget comes after months of community feedback and reductions in staff at Central Office and districtwide contracts.
The bottom line: Austin ISD isn’t alone in this budget situation. Districts across the area and the state are grappling with deficit budgets and staffing cuts as another legislative session is set to begin in 2025.
"I also want to move into the legislative session with as little reliance on the need for additional funding as possible," said Superintendent Segura. "But I do acknowledge 70 plus million is an ambitious goal, but I would like that to be the goal, it’s not going to be the required goal, but I do want to leave no stone unturned."
La mesa directiva adopta un presupuesto anual de $954 millones
La mesa directiva adoptó el presupuesto para 2024–25 de un total de $954 millones para gastos operativos en su junta ordinaria de votación del 20 de junio.
Los detalles: Los contribuyentes fiscales de Austin generaron $1,690 millones en ingresos para el próximo año fiscal, que comienza el 1.° de julio. Sin embargo, después de que se envíen $821 millones al programa de recuperación del estado, el distrito operará con un déficit de $78 millones en el ciclo escolar 2024-25.
Lo que se está diciendo: "Es realmente importante que hagamos todo lo que podamos para comunicarle a nuestra comunidad que hemos alcanzado el mayor nivel de eficiencia que nos es posible, haciendo todo nuestro esfuerzo para afectar mínimamente el salón de clases", dijo el superintendente Segura. "Quiero ser muy claro en cuanto a la magnitud de lo que estamos hablando, ya que sabemos que esto tendrá un impacto".
Digno de mención: El presupuesto de 2024–25 no incluye financiamiento para aumentos en el pago del personal. Cualquier aumento de pago, incluyendo ajustes del mercado, requeriría financiamiento a través de una VATRE u otras nuevas fuentes de ingresos. Todos los detalles se describen en un plan creado con el asesoramiento de Education Austin.
Cómo llegamos aquí: El presupuesto final llega después de meses de comentarios de la comunidad y reducciones del personal de las oficinas centrales y de contratos en todo el distrito.
En conclusión: El Austin ISD no es el único en esta situación presupuestaria. Los distritos de todo el estado están bregando con presupuestos con déficits y recortes de personal mientras se tiene programado que comience otra sesión legislativa en 2025.
"También quiero pasar a la sesión legislativa dependiendo lo menos posible en la necesidad de fondos adicionales", dijo el superintendente Segura. "Reconozco que más de 70 millones es una meta ambiciosa, pero me gustaría establecer eso como la meta, aunque no será la meta requerida, no quiero escatimar en esfuerzos".
The Board of Trustees is meeting weekly this month as they refine two major items that will determine how Austin ISD operates for years to come.
Why it matters: With the ongoing financial strain due to outdated state funding and recapture, it’s critical for the district to keep a focus on student achievement while making every dollar count.
Let’s dig into the latest budget discussions:
And now to the Scorecard:
What’s next: After two working meetings this month, the board will meet again June 20 for a voting meeting, including the 2024–25 budget and Scorecard.
Austin ISD recently hosted three groundbreaking ceremonies for schools undergoing full modernizations, marking the commencement of the first modernization projects since voters approved the 2022 Bond.
Two schools also celebrated kick-offs on the construction of the renovations to their open-concept floor plans, adding full walls and doors between learning areas to enhance safety and the overall student experience.
What they’re saying: “As we reflect on our campus’ history and celebrate our 50th anniversary, we are also looking to the future with great excitement,” said Cook Elementary Principal Priscilla Sanchez Emamian. “The improvements planned from the 2022 Bond will make a tremendous positive impact on our students and staff. We can’t wait to see our school’s transformation.”
What's next: Construction on the modernizations of Harris Elementary School, Wooten Elementary School and Sadler Means Young Women’s Leadership Academy will kick off this summer, with Harris and Wooten expected to open in January 2026, and Sadler Means anticipated to open in January 2027.
Go deeper: For more information about 2022 Bond projects, visit www.AISDFuture.com or message us on Let's Talk by texting (512) 856-6123 or online at https://bit.ly/Letstalkaisdbond
A VATRE would ask the community to consider approving a tax rate that would allow Austin ISD to gain an estimated $44M in funding annually.
Why it matters: Those additional funds would help Austin ISD continue to recruit and retain highly-qualified teachers and staff by funding pay increases.
Where we stand: The board has set the total tax rate at 0.8595 for every $100 in taxable value for FY 2023-24, the lowest rate in Austin ISD history in 34 years.
What they’re saying: "When a state refuses to pay for public education and one legislative session after another refuses to invest in our kids, it's on us here locally to invest in our kids," Ken Zarifis, Education Austin President, said in an interview with KVUE.
By the numbers: Due to the state’s recapture formulas, roughly 25% of funds raised by an increased tax rate would stay in Austin ISD.
“It’s up to the voters and we have to give them that choice,’ said Kathryn Whitley-Chu, District Trustee. “Austinites went to the capitol, thy called their friends in rural areas, they let people stay in their homes to testify [for increased school funding], and they weren’t listened to [by the Texas Legislature] "When we campaigned for the bond, people were excited for the things our students were getting but they would always say ‘what about the teachers and what about raises…’ and I think we have an obligation to our students and our community who are asking for it.”
How we got here: Despite Texas’s $33B budget surplus, virtually no additional per-student funding was approved during the last 88th Legislative Session.
Yes, and… Inflationary costs such as energy, fuel, insurance and other cost of living expenses have increased by roughly 17% since the last time the state increased per student funding.
What’s next: The board would need to vote to include the VATRE on the November ballot no later than August 19, 2024.
Austin Independent School District (“Austin ISD”) plans to price approximately $750 million of Unlimited Tax School Building Bonds, Series 2024 (the “Bonds”) on or about March 26, 2024. The pricing date is preliminary and subject to change. The Bonds are the second installment of bonds being issued to fund district-wide projects approved by voters as part of a $2.44 billion November 2022 bond election.
Cabrera Capital Markets LLC will serve as Lead Manager in the sale of the Bonds, with UMB Bank, N.A. serving as Co-Lead Manager.
Austin ISD anticipates the issuance of a single series of bonds with a 25-year amortization. The preliminary official statement and official statement for the Bonds will be available via BondLink at BondLink.com and via the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access system at emma.msrb.org.
Austin ISD anticipates that the proceeds from the sale of the Bonds will be used for (1) the design, construction, acquisition, rehabilitation, renovation, expansion, improvement and equipment of school buildings in the District (including but not limited to improvements to enhance safety, security, and energy efficiency) and the purchase of the necessary sites therefor and the purchase of new school buses, (2) the design, construction, acquisition, rehabilitation, renovation, expansion, improvement and upgrading of technology systems, infrastructure and equipment, (3) the design, construction, rehabilitation, renovation, expansion, improvement and equipment of stadium facilities in the District, and (4) paying costs of issuing the Bonds.
This news release is provided for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any of the Bonds. Any such offer or solicitation will only be made pursuant to the applicable preliminary official statement and/or official statement that prospective investors should review in entirety before making any investment decision.
The Austin ISD School Board of Trustees appointed Matias Segura as the district’s superintendent at its regular board voting meeting Thursday.
Segura's deep roots in the Austin ISD community, as both a former student and the son of a longtime teacher, make him uniquely qualified to understand and address the needs of the district.
He attended Kocurek Elementary, Covington Middle School and graduated from James Bowie High School. His mother was a former teacher serving more than four decades at Austin ISD.
The board officially extended and approved a contract for Segura during the meeting.
Segura is currently completing a Superintendent Educator Preparatory Program, which along with other requirements would allow him to obtain a Superintendent Certification.
Background
The budget process for the 2024-25 school year has begun!
What to know: The Austin ISD Finance Department presented a budget update to the school board and explained how we’ll work to reduce our $52 million budget deficit for this fiscal year.
The department is focusing on some key areas within the district to reduce the deficit.
What they’re saying: “Our goal is to reduce our overall budget deficit by 50%. Once a budget is adopted we begin to perform budgetary reviews, making sure they align with the district scorecard and initiatives,” said, Eduardo Ramos, chief financial officer at Austin ISD. “That process is year-round as we continually monitor our budgets.”
What’s Next: We’ll present a preliminary budget to the board in April and the final budget is scheduled to be adopted in June.
Get involved: The district will host a series of community conversation throughout the spring semester where everyone is invited to weigh in on budget priorities.
Full event details are listed on the district calendar.
Thank you for your support in 2023! Over the last year a lot of work has gone into the 2022 Bond projects and we’re wrapping up the year on a high note.
On Dec. 12, we hosted the construction kick-off for Odom Elementary School — the first major school renovation as part of the 2022 Bond. The upgrades to Odom’s open-concept floor plan will fully enclose learning spaces and improve safety for students, teachers and staff.
In the new year, we will continue gathering community input, which is an essential step for the bond projects. Keep an eye out for community meetings at the following schools in January and February:
Follow the 2022 Bond calendar or sign up for campus newsletters here to learn more about upcoming community engagement opportunities. Visit AISDFuture.com for more details about your school’s project.
In case you missed it, watch our 2022 Bond 1-Year Anniversary video to learn more about 2022 Bond progress and what has been accomplished so far. The Spanish version can be viewed here.
Fitch Ratings has affirmed Austin Independent School District (ISD), Texas' Issuer Default Rating (IDR) and unlimited tax (ULT) bonds as follows:
--Issuer Default Rating (IDR) at 'AA+';
--Approximately $2 billion in outstanding ULT bonds at 'AA+' (underlying rating).
The Rating Outlook is revised to Stable from Negative.
It's been one year since Austin voters approved the $2.44 billion 2022 Bond Program.
Thank you to the Austin community for supporting these much-needed improvements that benefit students across the district!
Over the past year, we’ve been building the foundation to support all the 2022 Bond projects.
By the Numbers: Some of the highlights from year one include:
The bottom line: These projects wouldn’t be possible without the support of our Austin ISD community. We are honored to work alongside students, teachers and staff to bring these projects to life and improve the learning experience across the district.
Go deeper: Watch our 2022 Bond by the numbers video to find out more about the status of the 2022 Bond.
AUSTIN– Thursday evening, the Austin ISD Board of Trustees unanimously approved changes to the Superintendent profile and voted to proceed with posting the position for the long-term superintendent.
Board President Singh explained that the board had several options to name a permanent superintendent. One of them was to do a national search, which would take several months to complete. The other option would be to post the position immediately if they felt a national search was not necessary. When school boards do this, it’s typically because a strong candidate has been identified already.
The board voted to post the position from November 17, 2023 until 5 p.m., December 7, 2023.
“There was an overwhelming message of wanting stability, focusing on strengthening systems to improve student’s outcomes and wanting someone with a demonstrating commitment to Austin ISD,” President Arati Singh said. “Although we have a strong internal candidate we are committed to considering every application that is received.”
On March 30, the Board of Trustees paused the current superintendent search and extended the contract of the Interim Superintendent through June 30, 2024. Their decision was to ensure that the most urgent issues were addressed and that the 2023-24 school year was strong and successful.
“We’ve been progressing, we see an improvement in climate and culture, increase in retention and staffing,” said Matias Segura, Interim Superintendent of Austin ISD. “I think Austin ISD is well positioned to do great things and I’d love to continue to be a part of it.”
At the end of October, the Board of Trustees resumed their community and staff conversations to seek input on the profile and hiring process. These conversations helped shape the board’s revision to the superintendent profile as well as their decision to forego a national search.
The board will review the applicants during their Dec. 7 executive session.
In November 2022, Austin voters approved $2.44 billion in bond funds for improvements across the district. Since then, the district has been designing projects, ordering materials and gathering community input.
What you need to know: We’ve held 33 Campus Architectural Team meetings for our communities to provide input on the design and function of the open-concept schools.
How it works: Principals of the four open-concept school renovations and nine modernization projects selected the members of their CATs, which include teachers, parents, students and community members who will work with the architects to ensure that the schools are designed by and for the communities they serve.
Get involved: We’re still recruiting for CATs as we kick off more modernization and comprehensive projects this fall.
Learn more about joining a CAT and stay up-to-date about upcoming CAT and community meetings.
All open-concept, modernization and comprehensive projects with a CAT will host at least four community meetings throughout the design and construction process to share timely updates and continue to gather feedback.
HUB support: Since the voters approved the 2022 Bond, we’ve hired providers for 40 different services with more than 120 businesses.
Go deeper: For more information on the 2022 Bond Program visit AISDFuture.com.
Early Friday morning, the Austin ISD Board of Trustees voted unanimously to approve a $1.86 billion budget for the 2023–24 fiscal year, which starts on July 1.
The budget includes $940 million in recapture payments to the state, about 50% of the district’s total expenditures for the year.
On May 18, the trustees approved across-the-board pay raises for all district teachers and staff for the 2023–24 school year. Trustees agreed to spend $52 million of district savings to fund the pay increase.
“Our commitment to increased pay is already showing strong results. This time last year, the district faced about 1,000 teacher vacancies. Today, we have just 80 vacancies. When our students return in August, we expect every campus to be staffed with the highly-qualified teachers, librarians, principals, counselors, bus drivers, cafeteria workers and custodians who are essential to every child’s success,” Trustees Arati Singh and Lynn Boswell wrote this week in the Austin American-Statesman.
The new compensation package provides meaningful raises for all teachers and staff:
Austin ISD ongoing news and announecments
On Tuesday, voters passed all three of Austin ISD’s bond proposals, an investment of $2.44 billion in local schools.
Why it matters: Nearly every campus will receive improvements with these bond funds, which will help the district save money on repairs and maintenance by modernizing many of its older campuses, freeing up money that can be used to increase teacher pay.
What they’re saying: “This is a day to celebrate, and now we roll up our sleeves and get to work. We are 90% finished with work from the 2017 bond package, so we can hit the ground running on these new bond projects to advance equity in our community.” --Board of Trustees President Geronimo Rodriguez.
More info: Voters also elected four former new members of the Board of Trustees and re-elected one incumbent.
What’s next: The district will be forming architectural teams with families and community stakeholders for all campuses that are slated for renovations.
Yesterday evening, the current AISD Board of Trustees met with the four newly elected members who will be joining the board Dec. 1. Our shared goal was to begin discussing the process of choosing a new interim superintendent to serve Austin ISD until a permanent hire is made.
As current and future trustees, we stand together at a moment of many transitions. We know that you stand here with us – part of our Austin ISD community that cares deeply about our students, our staff, our district, and our shared success.
This is also a moment of opportunity. Our community sent a clear message of support for Austin ISD by passing a historic $2.44 billion bond last week. Enrollment is steady, with families across our district choosing Austin ISD schools for more than 73,000 students. Thousands of teachers, bus drivers, custodians, principals and other staff are working to ensure that great things happen every single day in our schools. The love we all share for the district and our students is a powerful source of strength, and we thank each of you for all that you do to support and improve our schools.
As we begin to plan for this important transition, we want to share an update with the Austin ISD community so you know where things stand, what to expect in the weeks ahead, and how you can be part of this process.
Thank you for being part of our Austin ISD community, and thank you for working with us to serve our students, support our staff, and strengthen and celebrate our schools.