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$78M Budget Deficit: Austin ISD 2024-25 Budget Faces Challenges, Seeks Tax Hike

(photo: CBS Austin)

Austin ISD faces a $78 million budget deficit due to rising costs and state recapture.

Austin ISD 2024-25 Budget Faces $78 Million Deficit Amid Rising Costs

Austin ISD trustees finalized the district’s 2024-25 budget late into the night approving $954 million for operating expenses. Local taxpayers contribute $1.69 billion in revenue but $821 million goes to the state’s recapture leaving a $78 million deficit, according to the report of Audacy.

The budget shortfall is worsened by rising costs like energy and insurance. With state funding stagnant since 2019, Chief Financial Officer Ed Ramos warned of potential cuts affecting classrooms statewide without increased education funding.

READ ALSO: $51 Billion Forgiven: Biden Student Loan Forgiveness Update Before June 30 Deadline

(photo: Audacy)

Austin ISD Seeks Tax Hike to Cut Budget Deficit to $41 Million

To reduce the deficit to $41 million, the district plans savings from unfilled positions and cost cuts, pending voter approval of a potential tax increase. Trustees will decide on this in August, proposing a maximum 17-cent tax hike translating to an average $35 monthly increase for median homeowners.

Already cutting $29 million from central office staff and contracts, Austin ISD aims to stabilize operations amid financial challenges, focusing on maintaining educational quality while awaiting state and voter decisions.

READ ALSO: UK General Election 2024: Conservative £17 Billion Tax Cut Vs. Labour VAT Review And Liberal Democrat Capital Gains Overhaul

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