Austin ISD faces $43M savings opportunity through school consolidation and portable reductions

Austin Independent School District (AISD) is facing a significant financial opportunity through potential savings from school consolidation, as highlighted in a recent internal audit cost analysis. The report reveals that AISD has the lowest average number of students per school compared to six peer districts, with the exception of Fort Worth ISD. This trend is attributed to a higher number of smaller, older schools within the district, which have been cherished by the community but may not be financially sustainable.

Over the past seven years, AISD's enrollment has declined from approximately 80,000 to 70,000 students, leading to underutilization of many school facilities. The analysis indicates that consolidating smaller schools could yield substantial savings. For elementary schools, the difference in operating expenditures per student between larger schools (500 or more students) and smaller ones (less than 500 students) is $16.77. If this difference is applied to the number of students in smaller schools, the estimated annual savings could reach around $30.1 million.

Similarly, for middle schools, the report notes that larger schools (750 or more students) have an average operating expenditure per student that is $2,883 less than smaller schools. This could result in an additional $13.5 million in annual savings if smaller middle schools are consolidated. In total, the potential savings from school consolidation could amount to approximately $43.6 million each year.

Additionally, the report addresses the issue of portable buildings, with AISD currently managing 535 portables, 305 of which are on campuses with less than 85% utilization. By eliminating these underused portables, the district could save an estimated $1.7 million annually in electricity and custodial costs.

As AISD considers these findings, the implications for future budgeting and resource allocation could be significant, potentially reshaping the district's approach to managing its facilities and finances.