Austin ISD projects $110M–$123M shortfall; administration outlines reductions, rightsizing timeline and community engagement

Interim Chief Financial Officer Katrina Montgomery and Superintendent Segura presented an updated budget picture to the Austin ISD Board of Trustees on March 27, saying the district’s projected deficit for fiscal 2025–26 could reach $110 million under current assumptions and climb to about $123.3 million under an 11% property‑value decline scenario.

Montgomery said the board’s approved 2024 budget began with a $78 million deficit; the district currently projects a $110 million shortfall if the district takes no additional actions. She said administration has already identified roughly $63 million in reductions (including multi‑year strategies) and is pursuing an additional $32 million in reductions for fiscal 2026 to return to the board‑approved starting point.

Montgomery pointed to near‑term spending indicators — a decline in March purchasing card spending from about $1.4 million in March 2024 to $700,000 in March 2025 and a drop in purchase order totals from $5.2 million to roughly $2.2 million — as…