Austin ISD Announces Hiring Freeze Amid Rising Budget Deficit

AUSTIN, Texas — Austin Independent School District (ISD) will implement a districtwide hiring freeze beginning March 1 as it confronts a ballooning financial deficit. The freeze comes as officials struggle to manage a budget shortfall that has escalated beyond initial expectations since last June.

The projected deficit, initially estimated at $78 million, has reportedly increased significantly despite the district enacting $26 million in spending reductions. Austin ISD’s Interim Chief Financial Officer Katrina Montgomery revealed the concerning figures during a school board meeting on Thursday.

“We can’t stop here. We can’t just say we made the $26 million [in cuts] and stop,” said Montgomery. She emphasized the need for continued budgetary reforms to ensure the district’s savings do not dwindle further.

Factors contributing to the growing deficit include increased spending requests in areas such as special education, instructional materials, and facility repairs, alongside lower than expected federal funding. Notably, the district requested $16 million for special education contracts alone.

Montgomery outlined the district’s objective of cutting an additional $32 million and hopes to reduce the deficit back to $78 million within the current fiscal year. In addition to the hiring freeze, the district is considering departmental reorganizations, property sales, and strategies to boost student attendance, which directly impacts state funding.

Montgomery acknowledged the challenges posed by a tumultuous political landscape that affects public education, with potential changes in funding and policies from state legislators and federal authorities. She remarked, “We have parents who are possibly keeping their kids at home because of their fearful state,” highlighting community concerns.

The district’s financial challenges have been compounded by inflation and unmet safety funding mandates imposed by state lawmakers in 2023. Although Austin ISD has received $2.5 million from the state for school safety needs, actual costs exceed $23 million.

In response to the ongoing funding debate, both the Texas House and Senate have put forth proposals for an increased $400 million budget for school security to help alleviate the shortfall.

Austin ISD is not alone in its fiscal woes; other Central Texas districts like Eanes and Leander ISD are also grappling with significant budget deficits. Eanes ISD is planning cuts to address its projected deficits, which include the potential closure of schools. Similarly, Leander ISD anticipates a $34.4 million shortfall, with plans to cut over 200 school-based positions following the end of the current school year.