Austin ISD previews $181 million budget gap; trustees consider staffing, planning-time and stipend changes

Austin Independent School District officials on May 7 presented a preliminary FY26–27 budget showing a $181 million gross deficit and sketched a package of potential reductions that would affect staffing, stipends and secondary planning time.

Katrina Montgomery, the district’s chief financial officer, told the board the district’s revenue estimate is $1.4 billion with $604 million in recapture and $1.031 billion in operating expenditures, leaving a $181 million gap. Montgomery said updated assumptions (property values and average daily attendance both projected at -3 percent) trim about $14.6 million from earlier estimates and yield a much smaller net deficit, but staff recommended the board adopt a plan to close the remaining shortfall by June 18 when the district must adopt a budget.

"This is difficult work," Superintendent Segura said. He framed the shortfall as the product of rising costs and flat state funding and emphasized that the district must present a responsible recommended budget May 21 and adopt it in June to avoid penalties and oversight.

District leaders described a multi‑pronged approach to reductions: re‑examining more than $30…