Austin ISD leaders say new state laws raise costs as district outlines $93M shortfall and staff reductions

Austin Independent School District officials told a joint subcommittee of the Austin City Council and Travis County Commissioners Court that new state education laws will increase district obligations even as AISD closes fiscal 2024–25 with a projected deficit in the tens of millions.

The district’s legislative staff described House Bill 2 as a large, statewide school funding package that appropriated $8.5 billion and created new allotments — including an “allotment for basic costs,” a teacher retention allotment and a support‑staff allotment — but said the changes do not eliminate a sizable budget shortfall for AISD.

Edna Butts, representing AISD legislative staff, summarized HB 2’s key elements: “They increased the basic allotment by $55, and they tied increases in the future to property values. They have two new allotments, the allotment for basic costs, and the teacher retention allotment.”

Butts detailed other changes that will affect district operations, including a doubling of the school safety allotment from $10 to $20 per student and higher per‑campus minimums. The district executives said the…