AUSTIN, Texas — Austin Independent School District leadership on Friday said the district projects a $181 million budget deficit for the upcoming school year after declines in property values, lower enrollment, and rising costs reduced expected revenue and increased financial pressure.
Superintendent Matias Segura said in a video update that the district expected lower property values and stable enrollment when it adopted its 2025–2026 budget, but final figures showed steeper declines.
Segura said property values fell more than projected and enrollment dropped by more than 3,000 students. He said those changes, along with higher costs and delayed real estate revenue, widened the district’s deficit.
Chief Financial Officer Katrina Montgomery said the district now expects to end the current school year with a $49 million deficit, about $30 million higher than earlier projections, even after $54 million in cost reductions.
Montgomery said the district’s original budget included a $19.7 million deficit and assumed about $45 million in revenue from property sales, including the former Rosedale and Brooke campuses. She said the Rosedale sale will not close this fiscal year.
District officials said they are considering additional measures to address the shortfall, including staffing adjustments, changes to teacher planning time, reductions in administrative and support staff ratios, cuts to employee stipends, and a 15 percent reduction in non-staff budgets. They also said they are evaluating program reductions and new revenue sources, including facility naming rights and private partnerships.
The district has previously implemented cost-saving measures, including central office restructuring, a hiring freeze, and spending controls. In November 2025, the school board approved the closure of 10 campuses, which officials said would generate about $21 million in savings, with most of the funds redirected to required school improvement efforts.
Segura said the district will align spending with available resources. He said the upcoming decisions will affect staffing and programs across the district.
