Austin School District Votes on Tax Increase to Bolster Budget

Austin school district voters will decide on Nov. 5 whether to approve a property tax rate increase of 9.1 cents, generating $41 million in additional revenue amidst statewide budget cuts and deficits.

• Proposed Tax Rate: 95.05 cents per $100 of property valuation (up from 85.95 cents).
• Additional Annual Cost: $420 for average-value homeowners.
• Funding Allocation: $17.3 million for staff compensation, $3 million for instructional coaches, and deficit reduction.

If approved, the district could reduce its $119 million deficit to $78 million. The district ended the 2023-24 school year with a $52 million deficit.

State Recapture Program Frustration

Some board members expressed concerns about Texas' recapture program, which would take about 75 cents of every dollar collected from the tax increase, leaving Austin schools with only 25%. The program redistributes funds from property-rich districts to property-poorer ones.

Compensation Package

The $17.3 million compensation package focuses on:

• Pay increases for experienced teachers.
• Raises for almost all instructional, noninstructional support staff, and auxiliary staff.
• Pay boosts for about two-thirds of the school district police.

Budget Cuts and Next Steps

Regardless of the vote outcome, the district anticipates needing to cut at least $78 million from the budget over the next two years. Superintendent Matias Segura warns of tough decisions ahead.

Voting Dates:

• Early voting begins Oct. 21.
• Election Day is Nov. 5.