Austin ISD reduces central office staff by 20% to save $9.6M

Austin ISD officials have reduced central office staff by 20%, a move that will save $9.6 million and is the latest effort in an ongoing slog to reduce the district's $93 million deficit, according to a Wednesday announcement from Superintendent Matias Segura.

The change has "impacted" more than 170 positions with layoffs, salary reductions or other disruptions, though district officials didn't specify in the announcement or clarify in a follow-up question how many of the employees specifically had their jobs eliminated.

Segura originally announced central office cuts in a May 23 letter.

In the Wednesday announcement, Segura said the move was difficult but "necessary to align our administrative functions and reduce administrative costs while acknowledging the size of our district and our current needs."

The announcement didn’t specify the number of employees working at the central office.

Officials have cut approximately $63 million in costs this year by reducing central office positions, freezing spending and lowering reliance on contractors.

The district started the calendar year with a $110 million budget deficit but has since slashed spending to bring the overages to $93 million.

"I recognize this is a very challenging time for our community and I encourage every student, staff and family member within Austin ISD to navigate this with empathy," Segura said. "This restructuring is only one step in a series of difficult conversations and decisions that must be made to ensure our district remains stable and we can maintain our ability to offer the highest quality education."

During the 2024-25 school year, officials also slashed $29 million from the budget, which included eliminating 60 full-time positions from the central office and operations facilities. Many of those positions were vacant or were held by workers who were leaving.

The district also received an additional $41 million when Austin voters in November agreed to raise their tax rate from 85.95 centers per $100 of property valuation to 95.95 cents. About half that revenue went to staff raises.

District officials also expect to release a list of potential campuses considered for closure this fall, a process instigated at least in part by budgetary concerns.

Officials have proposed a 2025-26 budget that would include a $19.7 million deficit, but would also require adopting a 15.2% fund balance, which is the district’s "cash on hand" used to fund payroll and other necessary costs. Current district policy dictates a 20% fund balance.