About

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

Dear Austin ISD Family,

This year has been incredibly difficult with multiple waves of policy changes or updates that affect our work. And now, due to the federal government’s extended review of grants, we’re facing a significant loss in federal funding that will impact how we deliver some of the programs we deeply value.

On June 30, we learned that some federally funded grants (Title I-C, II-A, III-A, IV-A, and IV-B), which typically disperse on July 1, are on hold with no timeline or indication of when or if they will become available. This amounts to more than $9 million in funding for Austin ISD.

• The hold affects federal formula and discretionary grant programs under the Elementary and Secondary Education Act (ESEA), including support for instructional quality, student achievement and equitable access to education.
• Given our ongoing budget deficit and decreasing fund balance, we currently do not have alternative funding for these programs or staff and will need to have discussions about how we move forward without these funds.

These programs, which include multilingual support and after-school programs, among others, help Austin ISD build engaging and affirming learning environments where all students can thrive academically, socially and emotionally. And while our values and commitment to our students remain unchanged, this new fiscal reality means we will have to change how we operate in some areas.

We believe every student deserves a high-quality education that affirms their identity, supports their mental health and prepares them to succeed in a global society. We believe in the power of bilingualism and biliteracy. We believe in the importance of social-emotional development and caring relationships in every classroom. These beliefs are not negotiable.

However, the way we deliver these services will need to evolve. We will be evaluating how to make the most of our remaining resources, which may mean restructuring some programs, consolidating efforts or scaling back in areas where we can no longer sustain the same level of support. These are not decisions we take lightly, and they will not be made without careful planning.

We also know that behind every program are students, families and educators who have come to rely on these services. That’s why we are committed to approaching this transition collaboratively with transparency and compassion.

In the coming weeks, we will share more specific information about the changes ahead. In the meantime, I want to thank you for your continued partnership and for trusting us with your child’s education. These are difficult times, but I believe in the strength of this community. We have weathered challenges before, and I am confident that, together, we will navigate this one with purpose and creativity.

Sincerely,

Matias Segura, PE, MBA
Superintendent

After significant cost reductions districtwide throughout the year, the Austin ISD Board of Trustees approved the 2025–26 budget with a $19.7 million deficit, — a steep reduction from the prior year adopted deficit.

The details: This budget includes $ 1.63 billion in revenue, including $715.5 million in recapture and $939 million in operating expenses.

• The new budget assumes $55 million in new revenue sources, including land sales and an estimated $9 million in new state funding from House Bill 2.
• The latest cost-cutting measures included a more than 20% reduction in the central office staff, totaling $9.6 million in savings.
• School improvement support is also included with an additional $8 million in funding.

Background: The road to this budget has been long and challenging. In June 2024, the board adopted a budget with a multi-million dollar deficit. A month later, projected property tax revenues came in lower than expected, increasing the shortfall by another $14 million– bringing the total to $92 million deficit.

• By January of 2025, the projected deficit had grown to $110 million, due to additional funding for Special Education and other services, as well as the loss of SHARS revenue.
• In March 2025, Austin ISD was able to reduce the deficit by an additional $9 million by implementing a hiring freeze and optimizing expenditure management strategies.
• We’re closing the year with a projected $90 million deficit that will be absorbed through our fund balance, or savings account.

On that note: With multi-year deficit budgets, our fund balance will now be below the 20% minimum required by board policy. To ensure a sustainable way to get back to 20%, the board also approved the updated fund balance policy to allow for a minimum fund balance of 15% for the 2025-26 school year and restore it to 20% by June 2028.

Looking Ahead: Austin ISD plans to bring an amended budget to the board in September once more is known about the rules tied to House Bill 2, which includes pay increases for campus-based staff. District leaders will work with Education Austin to finalize the compensation plan.

• Stay tuned as we continue working toward a balanced budget.