AUSTIN (KXAN) — Austin Independent School District Superintendent Matias Segura on Tuesday responded to criticism of the district’s proposed tax increase, which would inject millions into the district for pay raises and savings.
The district, facing a $119 million deficit, is asking voters starting this week to approve Prop A, a tax rate increase the district says will increase property taxes by more than $400 for the average homeowner.
The rate increase would generate $171 million annually, of which $41 million will stay with Austin ISD. The district said nearly half of that will go towards staff raises they could see as early as their December paychecks.
“I need to support whatever we can do as an organization to increase compensation to give our teachers and educators a chance of being able to live in the city they serve in the community they serve,” Segura said.
However, some voters, including former Austin ISD trustees, are concerned that most of the money generated from Austin’s tax rate increase won’t stay in the area. The majority — $130 million—will have to be paid to the state and then dispersed to “property-poor” Texas school districts.
In a letter to the Austin community, 10 former AISD board trustees argue the teacher raises resulting from the tax rate increase would be “eaten up” by the property tax and new AISD employee insurance premium increases.
The letter, which was posted to multiple social media platforms, was signed onto by Kendall Pace, Yasmin Wagner, Cindy Anderson, Latisha Anderson, Kristin Ashy, Cheryl Bradley, Julie Cowan, Amber Elenz, Sam Guzman, and Lori Moya.
“Staffing numbers have remained largely static, operating expenses have continued to grow, and ‘eliminated’ central office positions, which have been touted as a cost savings measure, were almost all vacant positions,” the letter stated.
Segura said on Tuesday that the letter contained some factual inaccuracies and did not acknowledge that other districts across the state were also operating in a deficit.
“We are making difficult decisions. We are cutting budgets wherever we can. We have chosen to bring this forward, as opposed to making even deeper cuts than we’re already going to have to do,” Segura said.
The superintendent said the district plans to cut $26 million from its budget this fiscal year and another $28 million in the following fiscal year. Segura said the administration will recommend budget cuts before the Thanksgiving break.
If voters approve Prop A, the district will spend $17.8 million on salary adjustments and $20 million to offset current costs, replenish the district’s savings, and reduce the deficit, according to plans posted on the district’s website.
On Tuesday, district officials released a list of average salary increases teachers, librarians, and other staff will receive if Prop A passes. The increases range from less than 1% for new teachers to more than 8% for educators with more than 20 years of experience.
Prop A and recapture
Texas has a funding system that caps the revenue school districts can keep per student. Prop A would allow Austin ISD to keep more money per student than it currently can, but it would also increase the amount of the district’s revenue that goes to the state.
Districts, like Austin ISD, would also be able to keep more of their tax collections if the Texas legislature approved an increase in the basic allotment – something it has not done since before the pandemic.
“There is a real chance the state may do nothing regarding increasing the basic student allotment, or increasing weights, or perhaps even increasing the safety and security allotment, so I have to be prepared for that,” Segura said.
