AUSTIN, Texas – The new legislative session starts in one week. Among the major issues facing lawmakers will be education, after the legislature failed to pass a school funding measure during the last session. Against that backdrop, districts across Central Texas are finding themselves in the red, including Austin ISD. 

“In my time on the board, we have not had this much of a deficit,” said Austin ISD board president Arati Singh. 

Singh is concerned about the current $92 million budget deficit, about 10% of the overall budget. 

“It is tough. It’s not easy,” said SIngh. 

“I am definitely concerned as a school leader,” said Melissa Rodriguez, principal of Lively Middle School. 

In fact, about two-thirds of districts in Central Texas are operating in a deficit right now, and many ISD leaders point to stagnant public school funding from the state. 

“There is something historic happening here that our state is choosing not to fund public education,” said Singh. 

In 2023, Gov. Greg Abbott’s school choice voucher plan fell short, and public school funding measures that were tied to it stalled as well, like teacher pay raises, enhanced career training for students, and raising what’s known as the “basic allotment”, the per-student amount that districts get from the state. The basic allotment has been stuck at $6,160 since 2019, despite big-time inflation since then. 

“We rank near the bottom nationally in this per student funding,” said Singh. “It’s not actually based on the cost of actually educating a child.”

Singh also points to increased costs related to House Bill 3, the school safety law passed in 2023. 

On top of that, Austin ISD pays out hundreds of millions of dollars in school property tax money to the state every year in what’s known as “recapture,” a way to even out the wealth among Texas districts. Last year, AISD’s payment was $699 million, the highest in the state. That amount is based on local property values. 

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“Yeah, it is [unfair], because property values really don’t have a whole heck of a lot to do with the needs of students in a city,” said Singh. “Over half of our students are economically disadvantaged.”

So, with the $92 million shortfall in mind, a committee was formed, which spent the fall figuring out how to make it up over three years. That plan was presented to the board in December. 

“It is difficult,” said Superintendent Matias Segura at the December 12 meeting. “Everything has an impact.”

In this current school year, the proposed cuts include things like eliminating some vacant positions, changes to technology, reorganizing departments, and reducing the number of special education vendors. 

In the 2025-26 school year, the district plans to have some central office employees work from home, so it can lease space in that building, as well as changing bus routes, optimizing master schedules, and reducing portable classrooms, among other things. 

The catch? 

“We don’t know yet how much of a cost reduction each of these will yield,” said Segura. 

If the budget is not reduced by enough next year, that’s when district officials say the cuts will really start being felt at the school level. 

“I am concerned that we would maybe have to consider increasing class sizes,” said Singh. “Cutting planning periods for our staff.” 

“We have to do more with less,” said Lively Middle School Principal Melissa Rodriguez. 

Rodriguez says any cuts to the arts would be very tough. 

“Our students absolutely love participating in music, art, theater, guitar, orchestra. They are motivated by that,” said Rodriguez. “So if we take that from them, we’re really taking a big part of what they love.

Some parents and teachers are urging caution. 

“I’m confused about why you would rush to vote on a budget when we don’t yet know what will come out of the legislative session,” said Tracy Dunlap, a teacher at Maplewood Elementary School, at the November 21 AISD board meeting. 

But, as all this happens, some are opening up their pocketbooks to help. 

“People who reach out to us and say ‘I’m seeing what’s happening to public schools and I care and I want to do something to support it,’” said Michelle Wallis, executive director of the Austin Education Fund. 

“The work that we’re doing through the Austin Ed Fund feels even more critical now,” said Wallis. “We funded 66 projects across Austin to the tune of about $450,000 this year.”

Still, the district will need much more to get out of the current hole. Recent comments from Gov. Greg Abbott about the upcoming session has some people feeling optimistic. 

“We will fully fund public schools in the state of Texas. We will provide teacher pay raises,” Abbott said in November. 

Austin ISD listed recapture reform among its legislative priorities. But for Singh, boosting the basic allotment will be the real game-changer. 

“We really need the state to step up,” said Singh. 

Austin’s budget deficit would be even higher if not for $30 million in cuts that were made at the central office over the summer, including 12 layoffs, as well as $20 million from the passage of Proposition A by voters in November. 

The upcoming round of cuts is expected to be finalized by the school board in the coming weeks. 

University of Texas at Austin President Jay Hartzell announced Tuesday he has accepted an offer to lead Southern Methodist University, a private university in Dallas. His last day at UT will be May 31, according to the University of Texas System.

“I am very grateful to Chairman Kevin Eltife and the UT System Board of Regents for the incredible opportunity they provided me to serve UT Austin in this role,” Hartzell wrote in an email announcing his resignation to the UT community.

Eltife and UT System Chancellor J.B. Milliken congratulated Hartzell on the new role.

“We have worked closely with UT Austin during Jay Hartzell’s five years as president, and we will continue to do so in the months ahead to ensure a smooth transition,” they said in a statement.

Hartzell has served as the president of UT Austin since 2020, when the UT System’s Board of Regents voted unanimously to name him to the job. He replaced Greg Fenves, who served as president for five years before leaving for Emory University in Atlanta.

The SMU Board of Trustees voted unanimously to offer Hartzell the position following a national search. Chair David B. Miller praised Hartzell as a respected leader in higher education.

“His leadership at UT Austin and commitment to advancing programs across diverse disciplines, including humanities, social sciences, arts, education, business, law, student life, and intercollegiate athletics, make him an excellent choice as SMU’s eleventh president,” Miller said in a statement. “He also understands the vital role Texas and its universities play in the nation’s vibrant economy.”

In his email, Hartzell said by accepting the job he was following the advice he gives students: “Follow your passions, take some chances, stretch outside your comfort zone, and think of how you would like to make an impact.”

Hartzell noted that under his leadership UT Austin achieved new highs when it comes to applications, enrollment and graduation rates. Just last year, he announced UT Austin would tighten requirements for automatic admission for Texas high school students in response to the growing number of applicants. The number of applications for freshman admission for the fall 2025 term increased by more than 24% over the previous year.

During Hartzell’s tenure, UT Austin also launched new academic programs, more resources for student housing, began the renovation of the Tower and joined the Southeastern Conference.

His time as president was also marked by challenges and controversy as he led the university through a state-mandated ban on diversity, equity and inclusion programs as well as pro-Palestinian protests last spring.

UT Austin laid off dozens of employees who used to work on DEI programs after Senate Bill 17 took effect last January. Some students and faculty raised concerns the flagship institution was going beyond the scope of SB 17 and eliminating offices and programs that didn’t violate the law. Republican lawmakers indicated during a hearing in November that they plan to expand DEI restrictions at public colleges and universities during the legislative session that begins next week.

Hartzell received both praise and criticism for his response to pro-Palestinian protests on campus last year, which resulted in more than 130 arrests. His decision to call in state police was hailed by Republican leaders, but blasted by some faculty and students.

Hartzell, who previously served as dean of the McCombs School of Business, said he is grateful for his nearly three decades at UT Austin.

“I will be eternally grateful for my 29 years at UT as a student, faculty member, and administrator,” he said. “My wife, Kara, and I will always be Longhorns — as alumni, parents, passionate supporters, and fans — even when we are no longer on the faculty or staff.”

Hartzell announced the decision to leave UT Austin a day after the university promoted Rachel Davis Mersey to executive vice president and provost. She has held the key position on an interim basis since Aug. 27.

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University of Texas at Austin President Jay Hartzell is leaving the UT System’s flagship school to become the next president of Southern Methodist University, he announced Tuesday.

Hartzell said in a press release that this was an opportunity “I could not pass up.”

“I look forward to building upon the university’s remarkable momentum and leading SMU into its next era,” he said.

SMU’s current president, R. Gerald Turner, will transition this summer to the role of president emeritus. He has led the university for three decades.

Hartzell’s formal installation as president of SMU is tentatively scheduled for next fall.

It was immediately unclear who will lead UT-Austin in the interim or when the university will have a new president.

Hartzell has been president of UT-Austin since 2020. He previously served as dean of the McCombs School of Business and has been a UT-Austin faculty member since 2001.

Last year, his request for armed state troopers to respond to pro-Palestinian protests on campus received a vote of no confidence from faculty and praise from the GOP.

This is a developing story; check back for details.

Disclosure: Southern Methodist University, University of Texas at Austin, University of Texas at Austin – McCombs School of Business and University of Texas at Austin – Texas Enterprise – McCombs School of Business have been financial supporters of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune’s journalism. Find a complete list of them here.