Austin ISD proposes 2025-2026 budget with $44M in cuts and staff pay raises

The Austin Independent School District (AISD) Board Regular Voting Meeting on June 26, 2025, focused on the proposed budget for the fiscal year 2025-2026, addressing significant financial challenges and strategic decisions aimed at maintaining educational quality while navigating budget constraints.

During the meeting, Interim Chief Financial Officer Katrina Montgomery presented the proposed budget, emphasizing a commitment to prioritizing students, educators, and staff. The general fund budget is projected at $1.58 billion, with operating expenditures of $984.1 million. The budget anticipates a deficit of $19.7 million, which would reduce the fund balance to 15.21%. Montgomery assured the board that efforts would continue to reduce this deficit over the fiscal year.

Key strategies discussed included a central office restructure aimed at saving $10 million, alongside various reductions in special education contracts and departmental budgets. The board acknowledged the necessity of these cuts to avoid more severe impacts on classroom resources and staff. Montgomery highlighted that the budget reflects a conservative approach, with enrollment numbers and tax collections being carefully considered to ensure financial stability.

Trustees expressed concerns about the implications of reducing the fund balance policy from 20% to 15%, with discussions focusing on the potential risks and the importance of maintaining operational integrity. Superintendent Segura noted that while the adjustments are challenging, they are essential for protecting the quality of education and avoiding drastic measures such as staff layoffs.

The board also discussed the importance of transparency and communication with the community regarding budget decisions and their impact on educational outcomes. A commitment was made to provide quarterly updates on budget progress and adjustments, ensuring stakeholders remain informed about the district's financial health.

In conclusion, the meeting underscored the AISD's dedication to navigating financial challenges while striving to maintain educational standards. The board is set to vote on the proposed budget later in the evening, with a focus on balancing fiscal responsibility with the needs of students and staff.