Following months of uncertainty, shifting budget projections and contentious debate, Austin ISD leaders have approved more than $200 million in cuts for the 2026-27 school year, reshaping everything from staffing and transportation to classroom technology and extracurricular programs. The district now has a balanced budget, but many families are still trying to understand what changed, what was spared and what comes next.

The $205 million in reductions affect more than 500 positions, teacher planning time, bus service, stipends, technology and community partnerships, though the district preserved some programs, including librarians at every campus. Even with those reductions, the district enters the new school year with financial reserves at half the level typically required by board policy, raising questions about whether additional cuts and more school closures could follow to ensure a balanced budget in future school years.

The cuts cap months of worsening financial news. What began in February as district leaders warning of a larger-than-expected budget deficit grew into one of the largest financial crises in Austin ISD’s history. Board members ultimately approved an $887 million operating budget after the projected deficit ballooned to roughly five times what district leaders had forecast a year earlier.

District leaders have said the Austin ISD will need to make up another $60 million by the 2027-28 budget, raising questions about whether more difficult decisions, including additional school closures, could lie ahead.

“I want to acknowledge the pain, the disruption, the severe strain that has been within our system in the last many months as we have gone through this process,” Superintendent Matias Segura said in June. “It is very very difficult to bring forward a budget that is balanced when there are so many pressures within public education.”

Where students and staff will notice the biggest changes

Schools not identified by the district as facing significant academic challenges will see larger class sizes in some second through fifth grade classrooms, as well as less planning time for some elementary and secondary teachers. The reductions reflect a return to the state-mandated minimum of one planning period per day, a change that translates to fewer teacher positions at affected campuses.

All Austin ISD campuses will receive updated staff allocations based on enrollment, including adjustments to campus support roles. The district lost more than 3,000 students over the past school year. Some smaller campuses without significant academic challenges will have part-time assistant principals.

The district will also end its 1:1 student device program, and some software programs will be discontinued.

These schools will now follow a more standard transportation policy, which provides bus service only for students who live more than two miles from the school:

• Elementaries: Andrews, Blackshear/Oak Springs, Campbell, Harris, Jordan, Sanchez, Norman-Sims, Odom, Pecan Springs, Montessori and Zavala
• Middle schools: Burnet, Dobie, Gus Garcia, Martin, Sadler Means and Webb
• High schools: Crockett, Eastside, Northeast and Travis

The district will also discontinue districtwide transportation for Campbell Elementary School, Eastside ECHS, Gus Garcia YMLA, Sadler Means YWLA, the Montessori program at Riley Elementary and the Alternative Learning Center.

Transportation will continue to be provided along hazardous routes. Secondary schools will also transition to a “hub model,” meaning some buses will pick up and drop off students at neighborhood elementary schools. Middle and high school late-activity buses will be eliminated.

The budget also reduced funding for University Interscholastic League events, fine arts events and some athletics, including water polo, which originally was proposed for elimination. Partnerships with organizations such as Communities in Schools will also be scaled down.

Which programs and positions were preserved

Not every proposed cut made it into the final budget. Trustees restored or protected several programs during the process.

Ken Zarifis, president of employee union Education Austin, said keeping stipends for employees who work directly with students and preserving at least one librarian at every campus were among the biggest victories. Stipends for staff working directly with students, including those supporting bilingual and special education services, were maintained under a new tiered system. However, the district changed substitute incentive pay and reduced its contribution to employee health benefits.

“Even librarians were saved and we are really positive about that,” Zarifis said. “There were some things that were real wins.”

Every school will also continue to have a counselor. Schools under or at risk of state intervention, or those facing significant academic challenges, are not expected to see changes to teacher planning time or class sizes. They will also receive priority for partnerships such as Communities in Schools, UT Project MALES and Literacy First AmeriCorps.

More tough decisions could still be ahead

According to Zarifis, an estimated 300 of the 500 affected positions were already vacant. The district is working to place employees whose positions were eliminated into other jobs. Zarifis said he doesn’t know how many employees have been reassigned, and some have chosen to leave despite being offered another position.

Austin ISD maintains all certified teachers are guaranteed an alternative placement, and the district will try to find qualifying roles for affected uncertified employees, though its budget site notes: “There may be some difficult instances where a match cannot be found, resulting in a separation from the district.”

The district also plans to sell four properties to generate a one-time cash infusion of $60 million. Dawson and Sunset Valley elementary schools have already been recommended for sale. The proposed sale of the former Rosedale School remains in limbo following community pushback. That delayed sale, Segura has said, contributed to this year’s deficit. District leaders are expected to announce additional details this fall.

Even after balancing this year’s budget, the district estimates it will need to find $60 million to balance the 2027-28 budget. Austin ISD plans to save $31 million through staff restructuring, attrition and enrollment-based staffing adjustments by December.

Austin ISD will also begin a phased boundary realignment process this fall, starting with campuses affected by 2025 school closures before expanding in 2027 into a districtwide rezoning effort that ultimately could include more school closures.