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Austin ISD Board Approves Deep Cuts to Close $181 Million Shortfall

The plan relies on one-time property sales and reserve draws that still leave the district facing possible borrowing and state accountability pressure.

Overview

  • Trustees approved a revised budget during a Thursday-night meeting that raises planned reductions to about $205 million after a last-minute amendment to preserve full-time librarians and passed the measure by a 7–1 vote.
  • The package eliminates roughly 558–582 positions across campuses and central office with dozens of filled jobs requiring new placements and many vacant posts removed from the payroll.
  • AISD is counting on about $60 million from selling surplus properties, moving savings from roughly 15% of the operating budget toward a target near 10–13%, and officials warned they may need a loan this fall if one-time revenues fall short.
  • District leaders say the shortfall stems from sustained declines in daily attendance and enrollment, lower property values combined with the state's recapture rules, and failed or delayed property sales that were in earlier budgets.
  • The board extended Superintendent Matias Segura’s contract through 2030 with performance incentives removed, and trustees set monthly budget reviews while warning that future shortfalls could force deeper school-level cuts or trigger state intervention for low-rated campuses.