Austin ISD's financial challenges have intensified, with a budget deficit now totaling $110 million for the 2024-25 fiscal year. Initially estimated at $78 million, the deficit grew due to increased spending requests and reduced federal funding. In response, the district has implemented a hiring freeze, exempting only special education services, to curb expenditures. Interim CFO Katrina Montgomery insists that more cuts are necessary to avoid depleting the district's savings account. Strategies include organizational restructuring, selling properties, and enhancing student attendance to mitigate the financial pressures.
Montgomery emphasized the need for ongoing efforts to control the budget deficit: 'We can't stop here. We can't just say we made the $26 million (in cuts) and stop.'
To counteract the increasing deficit, Austin ISD is implementing a hiring freeze, with only special education services being exempt from this measure.
Katrina Montgomery outlined the driving forces behind the deficit, including 'spending requests' and 'lower-than-anticipated federal funding for the School Health and Related Services program.'
The strategy aims to reduce the deficit back to $78 million, involving cost reductions, property sales, and improved attendance rates.
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