AISD CFO outlines multiyear plan, warns of declining revenue and enrollment uncertainty
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Summary
CFO Katrina Montgomery told the board the district has paid about $8 billion in recapture since 2001, described efforts to restore fund balance through hiring freezes, property monetization and contract changes, and said FY27 budgeting will use conservative enrollment estimates to protect reserves.
Austin ISDs Chief Financial Officer, Katrina Montgomery, told trustees Feb. 12 that the district must pursue multiyear fiscal discipline as it plans for FY2026-27, citing declining targeted revenues and long-term recapture payments to the state.
Montgomery said recapture payments since 2001 total about $8 billion and noted federal and state funding streams such as SHARS (school health and related services) have dropped from previous years; the SHARS estimate for FY25-26 is presented at $2 million, far lower than prior inflows. She described a package of reduction strategies already in motion: a hiring freeze started in January, central-office refinements, potential property monetization or leasing, tighter procurement (P-card limits and preapproval), vacancy savings, and operational changes including bus-camera revenue.
On enrollment, staff explained the budget was originally built on 72,303 students, a snapshot showed 69,207 and the enrollment team projects 69,550 for next year. To create conservative buffers the finance team will build the non-staffing portion of FY27 on a lower projection of 66,768 while allowing schools to staff to the higher projection; trustees asked for written follow-up on revenue mix and percent of state funding after recapture.
Trustees pressed administration for details on retained savings from prior central reductions, explained definitions of "need-based" staffing and how reductions might affect resources at campus level. Montgomery and the superintendent committed to additional written detail and follow-up documents for trustees.
Next steps: administration will submit requested follow-up on state revenue share, hold-harmless implications, staffing details and property monetization strategies to trustees in writing.