AUSTIN (KXAN) — On Thursday night, Austin ISD trustees unanimously approved a $1.2 billion budget for next year, but the district is still facing a large deficit.
“Without an increase in funding for public education, without an increase to the basic allotment not only will you see additional reductions that will impact the classroom you will see that state-wide,” said Austin ISD CFO Ed Ramos.
Ramos said with the district facing a deficit for the next school year, they had to make cuts. But the district also wants to make sure students get the best education.
“It has put us in a tough position as a district,” Ramos said. “We have limited dollars we have to work with, but we still have to provide a service to our students.”
AISD could ask voters to approve a property tax rate increase in November to reduce the deficit, but that’s not the fix-all solution.
“Even with the voter-authorized tax rate election, if that were to pass, that does not take us out of the red,” Ramos said.
Ramos says if voters approve a property tax rate increase, the deficit would be $41 million.
If voters choose not to authorize the tax rate increase, there would be a $78 million shortfall, according to Ramos.
“We are going to be watching the 2025 legislative session very carefully,” Ramos said.
Many districts have blamed their financial struggles on the state and the lack of funding they receive.
“We have a school funding emergency in this state,” said Texas State Rep. James Talarico.
Talarico has been fighting to increase teacher pay and public school funding for years and says schools should not be struggling.
“Our local property taxpayers shouldn’t have to foot the bill for the growing needs in our city, the state of Texas,” said Talarico. “State government needs to step up and do its fair share.”
How would the tax rate increase impact voters if approved?
“Looking at an average household in the Austin area which, would be about a $563,000 home, that would be a monthly average increase in taxes of about 35 dollars,” said Ramos.
AISD says because of these financial struggles they are also looking at increasing class sizes and will continue to have discussions on areas they can cut in the future.
The board will officially vote on the tax rate election in August, then voters will have the final say.