District 2 Council Member Vanessa Fuentes is seen at a City Council meeting at City Hall in Austin, Texas, on Jan. 22, 2026. Kaylee Greenlee for AUSTIN CURRENT
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As Central Texas school districts shutter campuses amid falling enrollment and deepening financial strain, the City of Austin is stepping in to explore repurposing the land for public benefit, such as affordable housing.

The effort comes as Austin ISD weighs selling or leasing campuses to chip away at a deficit that, without intervention, is projected to reach up to $181 million by next school year, raising the stakes for how publicly owned land could be used at a time of overlapping fiscal pressure and housing demand.

The district voted to close 10 schools in November, six of which have been identified for potential repurposing of all or some of the land and are undergoing a community-driven process to determine the future of that land. Austin city council members in March directed City Manager T.C. Broadnax to begin conversations with Austin ISD and other area districts operating in part under the city’s jurisdiction about potential land redevelopment partnerships or property purchases as enrollment dips force school closures. The directive came as the council moved to formalize how the city works with Austin ISD to decide the use or sale of jointly-owned parkland.

Across Central Texas, the pattern is accelerating. Nearby suburban districts once driven by development, including Leander, Pflugerville, and Eanes ISDs, as well as charter schools such as KIPP Public Schools, have shuttered or are planning to close campuses.

Meanwhile, as Austin ISD prepares to close schools and consider the sale of valuable land to plug a growing budget deficit, another City Council resolution directed the creation of a process for the city to handle parkland jointly owned by the district and city across multiple campuses, including playgrounds and open space used by the public.

Council members asked Broadnax to work with local school districts and public entities such as CapMetro, Central Health, Austin Community College, other institutions of higher education, and Travis County to develop a land policy by the summer that determines when and how the City of Austin could engage with the groups to buy or seek redevelopment partnerships for available land. The city could seek a bond later this year to help finance potential purchases.

Council Member Vanessa Fuentes, who led the resolution, said two schools within her district, Widen Elementary and Bedichek Middle School, are slated for closure and she was motivated by the community push to have a say on Widen’s future use. She said it is not the first time the city has worked with other public entities and views the move as the city playing a role of convener. She said the timing creates an opportunity for coordinated planning across agencies facing similar financial constraints.

Widen Elementary has been tentatively identified as a surplus campus by Austin ISD and community feedback on its future, along with four other buildings and the surplus land at Bedichek Middle School, ended last week.

“There are many school districts that are closing schools right now because of the state legislature and the defunding of our public schools,” Fuentes said. “What I want to see from the City of Austin is that the City of Austin is a good partner in helping ensure that a school like Widen is able to remain for the public good.”

Austin ISD said in a statement it has been in conversation with various City of Austin partners, including council offices, the Austin Parks and Recreation Department, and nonprofit organizations, regarding potential future uses of repurposed properties. The district said it remains committed to a transparent, consistent process and future uses of district property would go through a formal request for proposals process and be evaluated using established criteria, which include community benefit, alongside financial and long-term district needs.

“While community-serving uses are an important part of that evaluation, decisions must also ensure the district can continue to fulfill its core mission of educating students across Austin ISD,” the district’s statement said. “The district is open to continued collaboration with the City as this process evolves and looks forward to further conversations.”

Fuentes said districts and various organizations are undergoing planning processes for the future use of facilities and land at a similar time, creating an opportunity for the city to align efforts to maximize public benefit. Examples include partnerships with Austin Community College as it develops a campus in Del Valle or working with Central Health as affordable housing is planned to determine where future clinics could be of most benefit. As for Widen, Fuentes said the community had good suggestions, such as a senior center or a place for intergenerational programming.

Other potential uses for soon-to-be available land could include affordable or workforce housing, healthcare and public health services, food pantries, homelessness services, libraries, vocational training, childcare facilities, cultural centers, or retail.

Broadnax is tasked with updating the council on the policy, which will consider community feedback, sustainability, operational efficiency and financial viability, by June 1. Other factors include historic or cultural significance, environmental impact, potential negative effects and development restrictions. The policy is also set to prioritize redevelopment of transit-adjacent real estate for pedestrian-friendly, mixed-use communities that increase the use of public transit and foster economic opportunities.

The city manager’s office said in an emailed response Monday there were no available updates on the process and “the city is looking forward to working with Austin Independent School District – and other entities – to identify opportunities for collaboration and partnership.”

“What might make sense for one area, one neighborhood, might look completely different in a different area in a different neighborhood,” Fuentes said. “We really want to make sure that we have that flexibility and acknowledge that each neighborhood is unique and different and carve out a process that is well aligned with community interests.”

Acacia Coronado is Austin Current's education reporter. She is a Texas native and has previously written for The Associated Press, The Texas Tribune and The Wall Street Journal, among others.