AUSTIN, Texas — The Austin Independent School District (AISD) is facing a budget deficit that is forcing the district to take cost cutting measures.
On Friday morning, AISD leaders discussed the district's deficit. Initially, AISD leaders were expecting a $60 million deficit and set a goal of cutting that number in half.
But the budget shortfall was wider than expected, with AISD now looking at a deficit of nearly $90 million.
The cuts announced by the district reduce the deficit to $59 million for the coming school year, with several options to cut costs moving forward.
The district is having to make cuts as school district funding is based in school attendance and property values, with a decrease in student attendance and an overestimation of property values putting the district in a sticky budgeting situation.
"So, the total amount that we were multiplying by our tax rate has decreased, and so, that is why now the amount of funding available is less," Superintendent Matias Segura said.
AISD also got $7 million less from the federal government this year and had to spend additional money on special education and safety and security.
"We have 41 positions here in central office that have been eliminated," Segura said. "Those individuals in those positions have been notified."
AISD teacher and parent Shaun Hopkins spoke out against the cuts at the board meeting Thursday.
"What is cheap ends up being expensive and if you cut these positions, I promise you it will cost us much more in the end," Hopkins said.
Segura calls this a challenging time for the district, making a plea to the Texas Legislature for more funding.
"Most people realize that you know AISD did not put AISD here, the state not supporting public education by way of funding has really exacerbated this problem that we have," Segura said. "There are five million students you know in Texas and we need their support, so please, please fund public education."
On Thursday, AISD officials discussed how the district plans to cut $30 million from the deficit and how they are preparing for what they call "difficult decisions."
The district's CFO, Eduardo Ramos, said the latest data showed the numbers were "not in our favor."
A major factor Ramos pointed to was that operating and property costs had gone up, while attendance and enrollment had dropped.
Ramos alluded to the point the district was forced to spend above its means, which has now led it to a point where cuts need to be made in order to stay afloat.
Board trustees raised the concern of the possibility of following behind smaller districts that had to close down schools.
Segura said the district would explore all avenues before it reaches that point.
"I don't want to sit here and tell you that three years from now or two we won't be having that conversation," Segura said at Thursday's meeting. "But I think at this point, there are enough things enough for us to turn over to where we can stabilize and get through a period of time to where we can really think through some of these more difficult decisions."
During the meeting, several parents and teachers were angered over the proposed cuts. Forty-one positions may be cut, which include an executive director position in the Dual Language program.
They fear without the position, the program will crumble and be a disservice to students.
"I believe that the quality of service and the quality of implementation is going to be put at risk. I don't think that we're going to have a strong language programs in AISD as we do now If we cut these positions," AISD teacher Shaun Hopkins told KVUE.
After the comments, Segura said he would be meeting with the program's team Friday to discuss those concerns and strategies.
At the district's meeting in April, leaders gave the community and Board of Trustees a preliminary 2024-25 budget that showed a potential $60 million deficit looming. District officials mentioned vacant positions and contract services as areas that could be cut to meet their desired number.
"With regards to positions, we're concentrating on central office and operational positions. So we are trying to do our best to leave campuses untouched," Ramos said at the April meeting.
The district may also ask voters to approve a tax rate increase, which would generate at least an additional $41 million in revenue.
In June 2023, leaders said the district faced a $52 million budget shortfall. Since then, AISD has cut costs through several measures including job vacancies and by lowering overtime pay and contract expenses.
The state of Texas hasn't increased enrollment-based funding for public schools since 2019, which has prompted the district to set a goal of maintaining a $30 million deficit in future budgets. Any additional expenses, such as employee raises, would result in additional cuts.
The budget is expected to be approved fully in June.
AISD officials are set to answer questions about Thursday's board meeting on Friday morning.