The district is looking to make cuts for the 2026-2027 school year. That could include teacher layoffs, changing librarian positions, reducing the number of nurses on campuses and decreasing technology expenses.
Superintendent Matias Segura said there are many elements putting pressure on next year’s budget, including declining funds from the city and federal government. The Austin Independent School District is facing a budget deficit of $181 million for next school year.
That’s according to the preliminary budget draft presented at a work session with board members on Tuesday night. The draft is an initial version of the budget used to guide decision making. Superintendent Matias Segura said to reduce the budget deficit, the district will have to make sacrifices, including some that will directly impact students, like teacher cuts. “We’re no longer at a point where we can protect all things,” Segura said. “The cuts are going to impact our ability to serve our students in a way we see best.” Segura and AISD’s Chief Financial Officer Katrina Montgomery explained four different scenarios involving budget cuts. In three of them, the district could end up with a balanced budget after applying “strategies” that would help save $132 million. The proposed cuts include saving $24.5 million with “staffing adjustments” on school campuses, including middle schools and elementary schools. The biggest savings — nearly $41 million — could come from staffing reductions at department levels. It is still unclear how many teachers and staff would be affected by these cuts. Segura said staff would be told about possible impacts by May 7. Other campus cuts could include reducing the number of campus monitors at middle schools, adjusting the number of nurses on campuses and transitioning librarians into support roles, a move that would impact how students access libraries.Montgomery explained that even with those cuts, the district might have to ask for a short-term loan to cover operational expenses. laid off 20% of its central office staffSegura said Tuesday there are many factors contributing to next year’s budget deficit, including declining grants from the city and federal funds. And state funding for schoolsBut he said the main factors driving the shortfall are decreasing property values over the last three years and a drop in enrollment because of immigration enforcement.Segura explained the district creates enrollment projections, but this year it underestimated the impact of immigration enforcement. As the work to reduce next year's deficit begins, some board members want the district to make long-lasting changes that could help balance future budgets without so many adjustments every year. Trustee David Kauffman said he would be wary of “one-time influxes of cash,” like property sales, that do not address the structural deficit over time. The current projected AISD budget is more than $1 billion. Segura said the goal is to make sure that the district has a stable financial system with operational expenses close to $850,000. Over the next few months, district officials and trustees will hold biweekly work sessions to go over the budget. The district is set to present a preliminary budget on April 21, and a final recommendation on May 21. The board of trustees is expected to take a vote to adopt the new budget in June. During the next month the AISD officials will hold virtual meetings with the community to hear feedback on the cuts.Austin
Austin Budget Cuts Budget Deficit Campus Impact School Districts Teacher Cuts
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