News Story

We’re back with another budget update! When we last checked in, we shared that the district was working to tackle a $92 million deficit over three years. 

Since then we’ve gotten new information from the Travis Central Appraisal District that means we could be facing a budget deficit between $105–121 million for the 2025–26 school year.

Why it matters: A bigger budget deficit means our savings will run out faster if we don't reduce spending — so we’ll have to make deeper cuts sooner than we’d expected.

How we got here: Austin ISD relies on estimates from the Travis Central Appraisal District to forecast how much revenue we can expect from local property taxes — our primary funding source. 

• When we first began forecasting funding for the 2025–26 school year back in the fall, TCAD estimated that Travis County property values would remain flat. 
• TCAD now anticipates they will go down by about 9–11%, which could amount to a loss of tens of millions in expected revenue.

Yes, and…The budget deficit continues to be a moving target as we grapple with higher costs than anticipated in areas such as special education and facility repairs.

• That’s why we’re implementing a districtwide hiring freeze, excluding special education staff, to reduce spending for the current year, effective March 1.

So now what? Previously discussed reduction strategies remain on the table as the district continues to reduce the current year deficit. 

• The district has already cut roughly $60 million from the budget in the 2024-25 school year, which includes eliminating Central Office positions, reducing service contracts and operational efficiencies across the district. 

• We’re now at the point where we must consider options that will have a direct impact on campuses such as eliminating programs and reviewing staffing levels. 

• The board is also exploring selling real estate for a one time, cash infusion.

We're keeping an eye on the state legislature, which has multiple school funding bills under consideration, though it's too early to tell what impacts those might have on our budget.

Get involved: This district is hosting a series of community and staff budget conversations in the coming months:

• Next up is Saturday, Feb. 22 at 11 a.m. via Zoom
• View the full schedule

Go deeper… with the presentation of the fiscal forecast to the board