Facing budget deficit, Austin ISD board approves tax rate election

AUSTIN (KXAN) -- On Monday, the Austin Independent School District Board of Trustees approved a voter-authorized tax rate election (VATRE) to help reduce the district's multi-million dollar deficit going into the 2024-25 school year.

According to Austin ISD, the district has a $119 million deficit. The district estimates that if voters approve the tax rate increase, the shortfall will be reduced to $78 million before budget cuts. The money, according to district officials, would be used to increase salaries for teachers and staff.

Several trustees pointed to the Texas legislature's failure to raise the basic allotment, the base amount of money the state gives districts per student, as the reason Austin ISD and many other school districts are looking to put a tax rate increase on the ballot. State lawmakers have not raised the basic allotment since 2019, amid inflation reducing school districts' buying power.

"We have a state that is trying to starve public schools," Trustee Lynn Boswell said.

Trustee Kevin Foster was the only school board member to vote against putting the tax rate increase on the ballot. He abstained from an earlier vote to set a higher tax rate. Foster said he was voting no because much of the anticipated revenue is expected to go to the state.

"We are voting to add to the state's coffers for things that don't serve us, and what we get in exchange is 25 cents on the dollar, which doesn't make a dent in the deficit," Foster said.

The district stands to raise $171 million through VATRE, but $130 million that money is expected to be recaptured by the state and redistributed to other school districts. The district would then be left with about $44 million to apply to its deficit.

School board President Arati Singh said it would equate to $550 more per student.

"It is a difficult ask for our community, but I am convinced it is the right ask for our community," Trustee Lynn Boswell said.

The tax rate would increase by $0.091, which means an additional 9.1 cents per $100 of a property’s taxable value. The rate would go from $0.8595 to $0.9505. District officials said the average homeowner will pay $412 more, or $34 more a month, if the rate increase is approved.

Learn more here with AISD's tax rate calculator.

Nabil Remadna and Grace Reader contributed to this report.