Education
BY ELLE BENT
Austin ISD o cials approved a scal year 2024-25 operating budget of $953.99 million and took on a de cit of $41.25 million June 20—as long as the board votes to place a tax rate increase on the November ballot. Without an increase in the tax rate to $0.9287 per $100 of property value and other savings, the de cit reaches about $78.2 million—the largest ever for AISD. Before recapture—when the state takes property tax dollars from a district—the general fund totals $1.78 billion. The operating budget is left at $953.99 million after paying $821.06 million in recapture. Austin ISD eyes tax increase to ease de cit
How we got here
"AISD did not put the [district] here; the state not supporting public education by way of funding has really exacerbated this problem that we have. My hope is that our legislators are paying
In mid-April, AISD sta discovered property value growth and average daily attendance rates were lower than they expected, bringing the pre- dicted $60 million shortfall to $89 million before cuts, resulting in less revenue for the district. O cials made about $29 million in cuts to central o ce positions and other costs this spring for FY 2024-25 to o set the de cit. AISD o cials are pointing to multiple issues with public education funding that impact the budget, including: • House Bill 3, passed during the 88th legislature session, mandating an armed security guard at every campus, incurring more costs to the AISD Police Department • A loss of $7.8 million promised in Medicaid reimbursements for special education students due to the ndings of a federal audit
attention to the pain that school districts are going through right now." MATIAS SEGURA, AUSTIN ISD SUPERINTENDENT
• The basic student allotment—the amount school districts receive from the state based on student enrollment and attendance—not increasing since 2019 despite ination • Slow property value growth due to Senate Bill 2, a property tax relief plan passed during the 88th legislative session
Budget spending
Going forward
General fund: $1.78B Debt service fund: $241.25M Food service fund: $47.42M
would receive a one-time incentive payment of $500, as opposed to a pay increase. “Our community has the ability to make a decision on taxes, their dollars can support our schools,” Education Austin president Ken Zari s said. “Every stone needs to be turned before cuts are made at schools.” District o cials will discuss possible revenue streams and vote on placing a VATRE on the ballot at a future board meeting.
District o cials will likely ask the community to vote on a tax rate increase in a Voter Approved Tax Rati cation Election, or VATRE, in November. If approved, o cials predict a VATRE would generate about $42 million in additional revenue. This would be about an increase of $35 a month to homeowners. Members of Education Austin, the district labor union, expressed support of a VATRE at a June 6 board meeting. Without it, full-time employees
Total: $2.06B
The district will pay $821.06 million, or 48% from the general fund to recapture. This leaves an operating budget of $953.99 million.
SOURCE: AUSTIN ISD COMMUNITY IMPACT
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SOUTHWEST AUSTIN DRIPPING SPRINGS EDITION
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