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AISD's financial rating slips as deficit lands at $105M

Austin ISD's budget deficit for the 2025-26 school year landed at $105 million, and the district's financial rating dropped to a B for the first time since at least 2017, Superintendent Matias Segura and Chief Financial Officer Katrina Montgomery told the board Aug. 27.

By the numbers: The shortfall grew throughout the year, per district data: $19 million at adoption, $121 million after a mid-year amendment and $105 million in the final unaudited number, $86 million higher than first approved. That drop pulled the district's fund balance down to 8.8% for 2025-26, well below the 15.21% target set at adoption, per district data.

The district's Financial Integrity Rating, a state financial-health score separate from academic grades, fell from a 95/100 last year to an 88 this year. The drop came down to a single pass-fail measure comparing staffing levels to enrollment declines, Montgomery said.

 
Local Eats
El Alma serves up Mexican comfort cuisine to Austin locals

For the last 15 years, El Alma has served Mexican comfort dishes to Austinites at its Barton Springs Road location. In the last three years, the restaurant has expanded to serve its familiar flavors to its South Austin audience, helmed by chef Alma Alcocer. 

“This is the type of place where I would expect everybody can find something that makes them feel happy,” Alcocer said.

The context: Alcocer said she knew she wanted to be a chef since she was a child. After going to culinary school and working in Austin’s dining scene, she draws inspiration from the food she grew up eating and her background as a professionally trained chef.

From the oven: At El Alma, patrons can find enchiladas, rellenos, tacos and salads on the menu. The duck relleno is made with braised and shredded duck, raisins and almonds stuffed in a poblano and served with chipotle tomato salsa, crema, escabeche onions and jasmine rice. 

  • 1025 Barton Springs Road, Austin; 4521 West Gate Blvd., Austin

 
TRANSPORTATION TUESDAY
Check out 6 transportation updates from across the Austin metro

Several transportation projects across the Austin metro are moving forward, with new construction, funding and schedule updates.

The details: Hays County secured more than $39 million in federal funding for a planned $49 million Centerpoint Road overpass over the Union Pacific Railroad crossing. The project is in the right-of-way acquisition and final design stages.

In Pflugerville, construction on Parkway Drive is expected to begin in mid-September following City Council’s approval of a $3.1 million construction contract. Work is scheduled through July 2027.

The MoPac South expansion in Austin is now estimated to cost $1.3 billion, an increase of more than $400 million. The project would add express lanes and shared-use paths between Cesar Chavez Street and Slaughter Lane.

Meanwhile, Round Rock’s Red Bud Lane North widening remains on schedule despite weather delays. Construction also continues on Cedar Park’s Toro Grande Boulevard improvements. In Buda, final asphalt paving has begun on Middle Creek Drive following substantial completion in August.

 
In Your Area
Mitzi's Scoop Crew brings pet waste removal to Lake Travis - Westlake area

Mitzi’s Scoop Crew, a San Marcos-based company specializing in pet waste removal, expanded its services to the Lake Travis - Westlake area in July.

Overview: The business, owned by Nathan and Erin GoodLife, offers pet waste removal services to help keep yards clean and prevent waste from reaching local water sources.

Mitzi’s Scoop Crew offers weekly, one-time or subscription-based cleanups using recycled, compostable trash bags. The company also offers eco-friendly and pet-safe deodorizing spray to eliminate odors and protect grass as well as sanitary disinfectant to eliminate bacteria.

What else: Mitzi’s Scoop Crew is named after the family’s dog, a 2-year old French schnauzer mix.

In July, the company expanded its territory to include Lakeway, The Hills, Bee Cave, Barton Creek, Bear Creek, Belterra and Sunset Valley. The recent expansion adds to services already provided in San Marcos, South Austin, New Braunfels, Buda, Kyle and Lockhart.

 
Statewide News
Q&A: Get to know the candidates running for Texas attorney general

For the first time in over a decade, there is no incumbent in the Texas attorney general's race as Republican Ken Paxton runs for U.S. Senate.

Democrat Nathan Johnson, a state senator from Dallas; Republican Mayes Middleton, a state senator from Galveston; and Libertarian Tom Oxford, an attorney from Nederland, are running to replace him this November. Community Impact asked the candidates for their perspectives on Texas' open records laws, state litigation and other topics.

How we got here: Johnson and Middleton each won their primary runoff elections in May, Community Impact reported, while Oxford was selected as the Texas Libertarian Party's candidate during an April nominating convention.

Looking ahead: Early voting in eight statewide races and dozens of local elections runs from Oct. 19-30. Election Day is Nov. 3.

 

Your local team

Sierra Martin
Editor

 

Heather Demere
General Manager

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