AISD $41M budget deficit. Anyone see a problem? Time to bitch about Recapture and what the state does with the money.
https://communityimpact.com/austin/south-central-austin/education/2024/06/20/a-potential-tax-increase-41m-deficit-and-no-staff-pay-raises-what-you-need-to-know-about-austin-isds-budget/
A potential tax increase, $41M deficit and no staff pay raises: What you need to know about Austin ISD's budget
Education Austin, the labor union for Austin ISD employees, rallied at the district administrative building April 25 before a board meeting, advocating for issues including pay raises. The Fiscal Year 2024-25 budget does not include funding for higher pay. (Elle Bent/Community Impact)
Austin ISD officials approved a Fiscal Year 2024-25 operating budget of $953.99 million and took on a deficit of $41.25 million June 20—with the assumption that voters will approve a tax rate increase in November.
Breaking it down
The district generated $1.69 in revenue from local tax dollars for the upcoming fiscal year. After the district loses $821.06 million to recapture—when the state takes local property tax dollars from a district to redistribute to other public school districts—AISD is operating at $953.99 million with a deficit of $78.2 million.
However, if vacancy savings and a tax rate increase occur, the deficit is reduced to $41.25 million; without these, the $78 million deficit will be the largest in the district’s history.
The new budget was drafted under the following assumptions that impact funding:
An enrollment of 73,100 students and an average daily attendance of 64,100 students
A property value growth of 6%
A proposed tax rate of $0.9287 per $100 of property value, pending voter approval
Officials made about $29 million in cuts to central office positions, overtime costs and more throughout this spring for FY 2024-25 in order to avoid a deficit as large as $89 million. Additionally, a hiring freeze for vacant central office positions began June 1.
The board also adopted a food service fund at $47.42 million and a debt service fund of $241.25 million June 20.