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The Austin Independent School District school board is meeting tonight and will discuss the district’s 2026-2027 budget, which could end up with a deficit of $181 million.

Here’s what you need to know about the deficit before the meeting gets underway:

Low Enrollment Numbers Are Partly To Blame

The Austin school district has seen a somewhat steady decline in enrollment numbers over the last 10 to 15 years, Keri Heath, an education reporter at the Austin American-Statesman, explained during a recent discussion with City Cast Austin.

Public school districts in Texas are funded based on how many students they have enrolled. That means they get more money per student from the state if enrollment numbers are higher.

This year alone, AISD lost 3,000 students. The dropping numbers can be attributed to a number of factors: The cost of living in Austin, immigration issues, and more choices being available for students, Heath said.

“We all know it's very expensive to live in Austin and has been for quite a while,” she said. “And if you are raising kids and want an affordable place to live, Austin may not be right.”

School districts surrounding AISD, like Hays and Bastrop, have seen enrollment numbers increase in recent years as people move out of Austin for more affordable housing options. Charter school enrollment has also increased in the last 10 years, as families are looking for more autonomy for what their student does in school.

New immigration policies have also led to families taking their kids out of AISD.

“You’re seeing this in districts all across the country where people are leaving, either by choice or by force, to go somewhere else,” Heath said.

Recapture Doesn’t Help

Additionally, the state’s recapture program is likely hurting AISD. The recapture program takes tax dollars from districts with high property values like AISD, and redistributes the money to districts with lower property values.

Austin pays more into the recapture program than any other district in the state. In 2024, voters approved a tax rate increase for the district that generated $171 million — $130 million of which went to the state’s program to fund other districts.

Proposed Budget Cuts Include Staff Layoffs

District officials must approve the budget for the upcoming school year in June, and some proposed changes include:

• Cutting some librarians from each campus
• Reducing planning periods for secondary teachers
• Reducing arts programming for elementary students

Layoffs are also likely to happen.

“Because nothing has been decided, and there's a lot of uncertainty, I think people are quite nervous,” Heath said.

Want to hear more on the issues AISD is facing? Listen to our episode with Keri! 👇