Austin ISD leaders now project a $49 million deficit by the end of the school year, more than double the shortfall board members approved just months ago, intensifying pressure on the district as it struggles with falling enrollment and rising costs.
Superintendent Matias Segura presented the revised forecast during Thursday night’s board meeting, attributing the worsening outlook to lower student enrollment, high operational costs, declining property values and weaker-than-expected revenue from property sales. The update comes months after trustees voted to close 10 schools and implemented a hiring freeze of central office positions to rein in expenses.
District administrators said the $49 million estimate assumes the district can cut $39 million in spending by June. However, if those reductions do not materialize, the deficit could grow. This $39 million target is also tied to the district’s requirement to keep a minimum fund balance…