During a recent board meeting, the Austin Independent School District (AISD) discussed the final proposed budget for the 2024-2025 school year, which is set to be voted on tonight. Chief Financial Officer Ed Ramos presented a comprehensive overview of the budget, highlighting key figures and challenges facing the district.

The proposed budget includes a general fund revenue of approximately $1.7 billion, with operating expenditures projected at $954 million, resulting in a deficit of $41 million. This deficit is attributed to various factors, including a flat enrollment projection of 73,100 students and a 92% average daily attendance rate, which has been impacted by the COVID-19 pandemic.

Ramos emphasized the importance of the basic allotment of $6,160 per student, which has not increased since 2019. He noted that raising this figure could alleviate some financial burdens, including the district's recapture payments to the state, which are expected to total $821 million. The board is also considering a voter-authorized tax rate election (VADER) to help address budget shortfalls, with the potential for a tax increase of approximately $35 per month for the average homeowner in the district.

The budget proposal includes $29 million in operational reductions, primarily at the central office level, and a reduction of 60 positions. The district aims to maintain a fund balance of 21.65%, which is slightly below the recommended 90 days of operating reserves.

Trustees expressed concerns about the implications of the proposed budget and the need for community engagement in discussions about potential cuts and compensation adjustments. The compensation package linked to the VADER would provide permanent raises for staff, addressing salary compression issues that have arisen from previous pay increases.

The board acknowledged the challenges ahead, particularly the projected $41 million deficit for the upcoming year and the need for strategic planning to ensure fiscal stability. A committee will be formed to explore further budget reduction strategies and engage with the community to gather input on potential solutions.

Overall, the meeting underscored the district's commitment to financial stewardship while navigating the complexities of funding public education in Texas. The board's decisions in the coming months will be critical in shaping the district's financial future and its ability to provide quality education to students.