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.