Budget

Finances at Austin ISD

Austin ISD is committed to maintaining a transparent budgeting process. The budget is driven by the AISD strategic plan, which is the product of genuine consensus‐building and embodies the vision of our community. The AISD board of trustees established a policy that requires the district to maintain a minimum of 20 percent of operating expenditures in its general fund balance, which is also a driving factor in the budgeting process.

The district is currently collecting feedback on the 2022-23 budget through the Budget Feedback Form, open until February 11.

AISD has earned the highest ratings for budget management from Moody’s Investors Service, Standard & Poor’s and Fitch Ratings. AISD also carries the highest bond and state financial accountability ratings that school districts can earn in the state of Texas.

Maintaining transparency about the AISD budget includes providing financial information to the public. On this site, you will find a host of resources, including data on district revenues, expenditures, tax rates, cost drivers and comparative data with other school districts.

Summer 2022

  • July: District receives Certified Appraisal Value from Travis County Appraisal District.
  • August: Payment submitted to TEA for Local Revenue in Excess of Entitlement (Recapture).
  • August: Administration prepares Truth-in-Taxation Publication.
  • August – September: Release Public Notice to discuss School Financial Integrity Results (FIRST Rating).
  • September: Board Approves Option to Reduce Local Revenue in Excess of Entitlement (Recapture).
  • September: Board Approval of the FY 2023-24 Budget Development Calendar.
  • September: Board Adoption of Tax Rates and Exemptions.
  • September: Public Hearing on School Financial Integrity Results (FIRST Rating).

Fall 2022

  • October: Board Approves August 2022 General Fund, Debt Service Fund & Food Service Fund Monthly Financials Investment and Tax Report.
  • October: FY2023-24 Department and Program Budgets released to build their allocations aligned with Board Priorities to meet the district's needs.
  • November: Preliminary Discussions with CAC's regarding Equity by Design framework in budgeting process (Date TBD).
  • November: Board approves 2021-22 Fiscal Year End Audit Results.
  • November: Board approves 2022 Tax Levy.
  • November: Board Approves September 2022 General Fund, Debt Service Fund & Food Service Fund Monthly Financials Investment and Tax Report.
  • November: Board Approves 1st Quarter Budget Amendment Report for General Fund, Debt Service Fund & Food Service Fund.
  • December: Preliminary Discussions with CAC's regarding Equity by Design framework in budgeting process (Date TBD).
  • December: FY2023-24 Department and Program Budgets due to the Budget department for analysis.
  • December: Board Approves October 2022 General Fund, Debt Service Fund & Food Service Fund Monthly Financials Investment and Tax Report.

Spring 2023

  • January: Preliminary Discussions with CAC's regarding Equity by Design framework in budgeting process (Date TBD).
  • January: FY2023-24 Elementary, Secondary and Special Campus School Budgets released to campuses to build their budgets aligned with Board Priorities to meet campus needs.
  • January: Board Approves November 2022 General Fund, Debt Service Fund & Food Service Fund Monthly Financials Investment and Tax Report.
  • February: Preliminary Discussions with CAC's regarding Equity by Design framework in budgeting process (Date TBD).
  • February: Presentation of 2023-25 Fiscal Forecast with Projected Revenue and Expenditures for FY2023.
  • February: Board Approves December 2022 General Fund, Debt Service Fund & Food Service Fund Monthly Financials Investment and Tax Report.
  • February: Board Approves 2nd Quarter Budget Amendment Report for General Fund, Debt Service Fund & Food Service Fund.
  • March: Preliminary Discussions with CAC's regarding Equity by Design framework in budgeting process (Date TBD).
  • March: Elementary, Secondary and Special Campus School Budgets returned to budget office for analysis.
  • March: Board Approves January 2023 General Fund, Debt Service Fund & Food Service Fund Monthly Financials Investment and Tax Report.
  • April: Preliminary Discussions with CAC's regarding Equity by Design framework in budgeting process (Date TBD).
  • April: District receives Preliminary Certified Estimate from Chief Appraiser.
  • April: Presentation of 2023-24 Preliminary General Fund, Food Service, and Debt Service Budgets.
  • April: Board Approves February 2023 General Fund, Debt Service Fund & Food Service Fund Monthly Financials Investment and Tax Report.
  • April: Board approves Consultation Agreement regarding the Compensation & Health Benefits Plans.
  • May: Presentation of 2023-24 Recommended General Fund, Food Service, and Debt Service Budgets.
  • May: Board Approves March 2023 General Fund, Debt Service Fund & Food Service Fund Monthly Financials Investment and Tax Report.
  • May: Board Approves 3rd Quarter Budget Amendment Report for General Fund, Debt Service Fund & Food Service Fund.
  • May - June: Publish newspaper notice of Public Meeting to discuss Budget and Proposed Tax Rates. Also post Proposed Recommended Budget to district website.

Summer 2023

  • June: Board Approves April 2023 General Fund, Debt Service Fund & Food Service Fund Monthly Financials Investment and Tax Report.
  • June: Board Approves FY2023 Final Budget Amendment Report for General Fund, Debt Service Fund & Food Service Fund.
  • June: Board holds Public Hearing on proposed budget and tax rates. Presentation of 2023-24 Recommended for Adoption General Fund, Food Service, and Debt Service Budgets
  • June: Board Adopts 2023-24 General Fund, Food Service and Debt Service Budgets
  • June: District posts Adopted Budget on website and maintains for three years.

Future Dates and Times for Community Meetings will be Added once Scheduled. 


How is the Austin ISD budget funded?

The majority of our funding comes from local property taxes along with state and federal funding. The Texas Legislature creates the rules for school state funding with calculations based on the following major factors:

  • The relationship between average daily attendance (ADA) and our property tax collections.
  • Additional funding for various student populations such as State Compensatory Education (At-Risk, Economically Disadvantaged, etc) or students receiving Special Education services.

 

What opportunities are there for the community to provide input on the budget?

AISD will host a series of budget community conversations in January. Community members can also get involved in their Campus Advisory Council (CAC), which works with principals to provide input on campus budgets. This process for campuses begins in January and campus budgets are due to the budget office in March. Feedback can also be submitted through the Budget Feedback Form.

 

When will the budget be final?

The preliminary budget will be presented to the Board of Trustees in April. Nothing will be decided until the board votes to approve the proposed budget on June 23, 2022. 

 

 What are the AISD Board priorities for the 2022-23 fiscal year?

The Board of Trustees’ priorities are:

  • teacher and employee well-being,
  • student well-being and achievement,
  • equity and needs of students, 
  • which must all be rooted in a culture of respect,
  • and grounded by fiscal stewardship

 

Why is Austin ISD facing a budget deficit?

We anticipate that AISD expenses will go up due to the costs associated with our COVID-19 response and its future effects.  Being a property rich district, a lower than expected enrollment would increase the amount of money sent to the state for recapture. Also, the projected ADA levels are lower than anticipated, resulting in a decrease of funding the district receives from the state. Additionally, we increased payroll expenses due to staff retention. Accounting for these factors, the adopted budget carries a $43.6 million deficit.

 

What is AISD’s expected budget shortfall for the 2022-23 school year?

Current projections anticipate a deficit of $62 million.

 

Why does AISD continue to face budget shortfalls?

The budget challenges are directly tied to the outdated recapture funding formula.  Funds are directly tied to enrollment, rising health care costs, energy and technology costs, and cost of living increases.

 

Doesn’t the district have savings to cover our budget shortfall?

We are fortunate to work with our board to keep our financial reserves strong. We are also fortunate to have staff who remain flexible and demonstrate their daily willingness to serve our students and community as a whole. Because of our strong reserves, we are able to weather unpredictable situations, like the COVID-19 pandemic and Winter Storm Uri. However, with factors like the declining enrollment, decreases in State Aid, and recapture, utilizing the district's fund balance is no longer an option.

 

Can the district use ESSER funds to offset the budget shortfall?

Yes, AISD may offset expenditures with ESSER funds as long as the activity is allowed under the ESSER statute. We must justify and align the use of funds to the intent of the ESSER statute, which is to prevent, prepare for, or respond to the COVID-19 pandemic, including its impact on the social, emotional, mental health, and academic needs of students.  The ESSER II budget includes $42.9 of relief in a 2-year period and ESSER III includes $83.1M of relief in a 3-year period.

The amount that is offset within a given year will alleviate the General Fund from the budgeted expenditures and have an overall increase to the fund balance, or in our case, a decrease to the amount of the budgeted shortfall. 

 

How much of the AISD budget is staff?

Excluding recapture, 86% of AISD’s General Fund budget is allocated toward payroll related costs.

 

How much money does AISD pay to the state under recapture?

For the 2021-22 school year, we anticipate sending $709.4 million of local property tax revenue to the state. That represents 44.9% of our total general fund expenditures. From FY2001 to FY2021, Austin ISD will have paid the state of Texas more than $5.0 billion in recapture payments.

 

How much money does AISD receive from property taxes?

In 2020-2021 of the $1.38 billion in local property taxes collected by AISD over half of those dollars, or $710.6 million is sent back to the state due to recapture.

 

How can AISD have budget challenges when school funding comes from local property tax revenue and local property tax bills have been rising each year?

While Austin has experienced significant economic growth, AISD does not get to keep the majority of the property tax revenue that comes with that growth. This is because of a state law called recapture, which requires school districts considered property wealthy— like Austin— to send money to the state. The state then redistributes to school districts that are considered property poor. 

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¿Cómo se financia el presupuesto del Austin ISD?

La mayoría de nuestra financiación proviene de los impuestos locales a la propiedad junto con la financiación estatal y federal. La Legislatura de Texas crea las reglas para la financiación estatal a las escuelas con cálculos basados en los siguientes factores principales:

  • La relación entre la asistencia diaria promedio (ADA, por sus siglas en inglés) y nuestras recaudaciones del impuesto a la propiedad.
  • Financiación adicional para diversas poblaciones de estudiantes tales como la Educación compensatoria estatal (en riesgo, económicamente perjudicados, etc.) o estudiantes que reciben servicios de Educación especial.

 

¿Qué oportunidades hay para que la comunidad aporte sus opiniones sobre el presupuesto?

R: El AISD organizará una serie de conversaciones comunitarias sobre el presupuesto en enero. Los miembros de la comunidad también pueden participar en sus Consejos Consultivos Escolares (CAC, por sus siglas en inglés), que trabajan con los directores para proporcionar opiniones sobre los presupuestos del plantel. Este proceso para los planteles comienza en enero y los presupuestos del plantel se deben presentar en la oficina de presupuestos en marzo. Las opiniones también se pueden enviar a través del Formulario de opiniones sobre el presupuesto.

 

¿Cuándo será definitivo el presupuesto?

R: El presupuesto preliminar se presentará a la Mesa directiva en abril. Nada se decidirá hasta que la mesa directiva vote para aprobar el presupuesto propuesto el 23 de junio de 2022.  

 

¿Cuáles son las prioridades de la Mesa directiva del AISD para el año fiscal 2022-23?

R: Las prioridades de la Mesa directiva son:

  • el bienestar del maestro y el empleado,
  • el bienestar y el logro del estudiante,
  • la equidad y las necesidades de los estudiantes, 
  • las cuales deben estar todas basadas en una cultura del respeto,
  • y cimentadas en la administración fiscal

 

¿Por qué el Austin ISD enfrenta un déficit presupuestario?

Anticipamos que los gastos del AISD aumentarán debido a los costos asociados con la respuesta al COVID-19 y sus futuros efectos. Siendo un distrito rico en propiedades, una inscripción inferior a la esperada aumentará la cantidad de dinero enviado al estado para la recuperación. También, los niveles de ADA proyectados son inferiores a los anticipados, dando como resultado una disminución en la financiación que recibe el distrito del estado. Además, aumentamos los gastos del pago de la nómina debido a la retención del personal. Debido a estos factores, el presupuesto adoptado conlleva un déficit de $43.6 millones.

 

¿Cuál es el déficit presupuestario esperado del AISD para el año escolar 2022-23?

R: Las proyecciones actuales anticipan un déficit de $62 millones.

 

¿Por qué el AISD continúa enfrentando déficit presupuestarios?

R: Los desafíos presupuestarios están directamente atados a la fórmula de financiación de recuperación desactualizada. Los fondos están directamente atados a la inscripción, a los costos del cuidado de la salud en aumento, los costos de la energía y la tecnología y los aumentos del costo de la vida. 

 

¿No tiene el distrito ahorros para cubrir nuestro déficit presupuestario?

Tenemos la fortuna de trabajar con nuestra mesa directiva para mantener fuertes nuestras reservas financieras. También somos afortunados de tener personal que permanece flexible y demuestra su disposición diariamente para prestar servicio a nuestros estudiantes y a la comunidad en su totalidad. Debido a nuestras fuertes reservas, somos capaces de soportar situaciones imprevisibles, como la pandemia del COVID-19 y la tormenta invernal Uri. Sin embargo, con factores como la disminución en las inscripciones, las disminuciones en la ayuda estatal y la recuperación, el uso del saldo de los fondos del distrito ya no es una opción.

 

¿Puede el distrito usar los fondos ESSER para compensar el déficit presupuestario?

R: Sí, el AISD podría compensar los gastos con los fondos ESSER siempre y cuando la actividad sea permitida por el estatuto del ESSER. Debemos justificar y alinear el uso de los fondos con el objetivo del estatuto del ESSER, que es prevenir, prepararse o responder a la pandemia de COVID-19, incluyendo su impacto sobre las necesidades sociales, emocionales, de salud mental y académicas de los estudiantes.  El presupuesto del ESSER II incluye una ayuda de $42.9 en un periodo de 2 años y el ESSER III incluye una ayuda de $83.1 millones en un periodo de 3 años.

El monto que se compensa dentro de un año dado aliviará al Fondo general de los gastos presupuestados y tendrá un aumento general del saldo de los fondos, en nuestro caso, una disminución en el monto del déficit presupuestado.  

 

¿Cuánto del presupuesto del AISD corresponde al personal?

R: Excluyendo la recuperación, el 86% del presupuesto del Fondo general del AISD está asignado a los costos relacionados con el pago de la nómina. 

 

 

¿Cuánto dinero paga el AISD al estado en concepto de recuperación?

Pare el año escolar 2021-22, anticipamos enviar al estado $709.4 millones de ingresos por el impuesto a la propiedad local. Eso representa el 44.9% de nuestros gastos totales del fondo general. Desde año fiscal 2001 al año fiscal 2021, el Austin ISD habrá pagado al estado de Texas más de $5.0 millardos en pagos de recuperación.

 

¿Cuánto dinero recibe el AISD de los impuestos a la propiedad?

R:   En 2020-2021 de los $1.38 millardos de impuestos a la propiedad local recaudados por el AISD más de la mitad de esos dólares, o $710.6 millones, fue enviada de vuelta al estado debido a la recuperación.

 

¿Cómo puede el AISD tener desafíos presupuestarios cuando la financiación escolar proviene de los ingresos por el impuesto a la propiedad local y los cobros del impuesto a la propiedad local han aumentado cada año?

Mientras que Austin ha experimentado un crecimiento económico significativo, el AISD no logra retener la mayoría de los ingresos por el impuesto a la propiedad que provienen de ese crecimiento. Esto se debe a una ley estatal llamada recuperación, que requiere que los distritos escolares considerados ricos en propiedades — como Austin— envíen dinero al estado. El estado entonces redistribuye hacia los distritos escolares que son considerados pobres en propiedades.