News Story

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