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Dear Austin ISD Families, Staff and Community,

Last week, the Board of Trustees approved our 2026-27 budget with an $887 million operating budget, which included an amendment to preserve librarians at all schools.

The last few months have been incredibly difficult for our entire Austin ISD community. Still, our focus has been entirely on balancing our budget while ensuring our students receive what they need to be successful. Navigating a $181 million budget deficit has forced us to make decisions we wish we didn’t have to. There is no avoiding the fact that these changes hurt.

Through challenging conversations, hard decisions and restructuring districtwide, we identified $205 million in reductions for the upcoming school year.

There is no doubt that our staff and families will feel the districtwide reductions, which have taken place at the campus and central support staff level. Reductions include the following measures:

• Designated positions in Central Office staff will experience a 2% decrease in annual salary, the average equivalent to 5 duty days.
• Stipends districtwide were adjusted to ensure any stipends were tied directly to work to support students and families.
• At schools with fewer academic challenges, some teacher’s planning periods will be reduced to the state minimum (one per day), and grades 2–5 will see modest class-size increases.
• Campus support roles will also scale back based on enrollment. While every school will retain a counselor, smaller campuses may transition to part-time assistant principals.
• The district will move away from a universal 1:1 student-to-device technology model to minimize student screen time and prioritize rich, interactive instruction. Through the academic visioning process, guidelines for providing device access based on specific student needs and developmental appropriateness will be developed.
• Partner-provided student support services will be scaled back to concentrate on our highest-need campuses.
• A number of transportation changes will be implemented including:
  • Discontinued districtwide bus routes for several choice schools & the Alternative Learning Center
  • Transportation hubs for secondary schools
  • Discontinued late activity buses at secondary
  • A return to standard 2-mile policy for all schools

While these reductions directly affect more than 500 current positions in the district, district leaders have worked to support staff and keep as many people employed within the district as possible. Certified campus staff under contract were offered placements in alignment with their certification area.

As we close out the 2025-26 school year budget, we’re expecting our fund balance to sit at 10% — half of what is typically expected to help weather any unexpected costs. To begin repairing this safety net, we identified an additional $19 million in expanded reductions for the 2026–27 budget, which will bring our reserves back up to 13% by the end of the fiscal year. Our ultimate goal remains a return to a healthy 20% reserve.

While our district navigates these painful transitions, please know we are deeply committed to doing this work in a human-centered, compassionate way. None of these decisions were made lightly, and we recognize the stress and anxiety they cause our community.

Austin ISD is not alone in this struggle. School districts across Texas are feeling the severe strain of underfunded deficit budgets. As the legislative session approaches in January 2027, we are fully committed to stepping up, raising our voices and fiercely advocating for the state funding our students and staff deserve.

Thank you for your grace, your resilience and your unwavering love for public education and the children of Austin ISD.

Sincerely,

Matias Segura, PE, MBA
Superintendent

Dear Austin ISD Staff and Families,

In Austin ISD, we’re committed to growing the next generation of Austin in a way that’s true to our values. To uphold that commitment, amid growing financial pressures, we must discuss deeper budget reductions than previous years.

When we passed the 2025–26 budget, we moved forward with a fiscally conservative plan. However, several factors have since shifted: Austin property values declined more than expected, enrollment dipped—largely due to the current climate around immigration—and we’ve faced rising operating costs alongside delayed real estate sales. We have now reached a point where these challenges have created a gap that we can no longer bridge with minor adjustments.

We now expect to end the current year with a $49 million deficit, and as we look toward the 2026–27 school year, we are facing a projected shortfall of $181 million.

At its core, this gap exists because Austin ISD prioritizes essential programs and services that the state does not fund. While we believe these offerings are integral to a holistic student experience, the current state funding model simply does not match the reality of these costs.

To protect the long-term stability of our district, we must consider deeper reductions. While we have already restructured the Central Office and implemented a hiring freeze to prioritize current staff, we must now look at campus-level changes.

In November, the Board of Trustees voted to close 10 campuses for the 2026–27 school year, a move estimated to save $21 million. We plan to reinvest $17 million of those savings into school improvement work, providing staff stipends and academic supports for campuses on state-required intervention plans. It is important to note that these are costs the district would have to pay regardless of school closures; using these savings simply allows us to cover those mandatory requirements without deeper cuts elsewhere.

As we consider further reductions, our guiding principle remains clear: we will evaluate every potential cut based on its impact on student learning and our ability to provide an enriching student experience. With that in mind, we want to be transparent about some of the areas we will need to consider for potential reductions:

• Discussion of campus staffing levels, including master schedules and planning periods.

• Revisions to ratios for campus administrative and support positions.

• Evaluation of employee stipends.

• 15% cuts to non-staffing budgets across all campuses and departments.

• Possible reductions or elimination of programs.

We are not only looking at cuts, we are also thinking creatively about new revenue. This includes exploring facility naming rights, billboard advertising and philanthropic partnerships to support our Fine Arts and Athletics programs.

We Need Your Voice
These conversations are deeply personal because they affect the people and programs that make Austin ISD special. Your input is essential to this process. As we consider these difficult choices, we are listening for feedback on how to implement changes in the least disruptive way possible.

We know that a “one-size-fits-all” approach may not work for every school. That is why we are looking to our families and staff to tell us what they see as the most impactful parts of the student experience and which programs truly drive exceptional outcomes for our children.

I invite you to join us at one of our upcoming community conversations to learn more and share your perspective:

• Virtual Session: Saturday, April 25 | 11 a.m.–12 p.m.

• In-Person (Austin High School): Tuesday, April 28 | 6–7 p.m.

• Virtual Session: Saturday, May 9 | 11 a.m.–12 p.m.

The preliminary budget will be presented on April 23, with a final Board vote scheduled for June 18.

I recognize the anxiety and uncertainty this news may cause. Please know that every decision we make is focused on ensuring that Austin ISD remains a place where students can thrive, even in the face of financial adversity. I know we can get through this together to create strong schools for a stronger Austin.

Sincerely,

Matias Segura, PE, MBA
Superintendent

Dear Austin ISD Family,

Today, the Texas Education Agency released the 2024 and 2025 state accountability results and while we’re seeing promising growth districtwide, it’s clear there’s still work to be done.

Here’s what we’re seeing from the data from 2024 and 2025:

• 67 campuses showed overall growth,
• 34 campuses improved their rating,
• The number of campuses rated “A” jumped from 16 to 22,
• 11 campuses went from a “D” or “F” to a “C,” and
• The number of “D” or “F” rated campuses steadily declined for the last three years with 49 schools in 2023, 48 in 2024 and 41 in 2025.

These improvements reflect the dedication of our students, the tireless commitment of our teachers and staff and the unwavering support from our families.

While our overall accountability results show encouraging improvement, several campuses have received consecutive unacceptable ratings, underscoring the urgency of our efforts.

Although we have not yet received official guidance from the state on formal turnaround plan requirements, we have had early insight into these results since late spring. This has allowed us to plan with our teams, work closely with campus leaders to strengthen instruction and collaborate with community partners, because we can only do this work if we do it together.

We are committed to doing the hard work together because the moment is right for accelerated growth across our district. Student success takes many forms and is measured in more ways than one. We are a vibrant, loving and innovative community that cares deeply about the success of our students. Together, we are making our Austin ISD stronger.

Sincerely,

Matias Segura, PE, MBA
Superintendent
Austin ISD