Austin ISD CFO warns of roughly $49 million adjusted deficit; proposes short‑term savings and hiring controls

CFO Katrina Montgomery gave a budget update that foregrounded a fund‑balance target of 15% and a projected total fund balance of about $182 million, with roughly $140 million unassigned. She said the district’s adopted FY25–26 budget assumed a $19 million deficit but current adjustments show an estimated $49 million deficit driven by a $54 million revenue decrease, a $56 million recapture decrease and a $28 million change because one planned property monetization is now expected to yield $17 million instead of two properties totaling $45 million.

Montgomery described a slate of strategies to reduce the gap through June 2026: approximately $34 million in stronger spending controls from March–June, a $12 million hiring freeze, and other reductions and revenue adjustments that together are intended to narrow a remaining shortfall (the presentation noted about $16 million still requiring strategy). She also said a technical correction from the Texas Education Agency is estimated to add about $4 million in funding for the current year.

Trustees asked for clearer monthly and interim statements to track how projections evolve, and several trustees urged more conservative enrollment assumptions for next year. Staff said they will provide clearer, single-sentence summaries of the district’s position for future meetings and will continue monthly closings to improve accuracy.

No policy action was taken at the presentation; trustees directed staff to continue reporting and to provide more detailed, disaggregated budget materials at follow-up briefings and the scheduled bond deep dive.