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Austin ISD looks to cut costs by $39M as budget shortfall grows

Austin ISD is aiming to reduce its expenses over time and increase its savings, known as fund balance.

The district is planning to make $39 million in cuts this fiscal year and $125 million in reductions in FY 2026-27, according to AISD documents. The FY 2025-26 cuts come as the district works to lower a projected $49 million shortfall.

The update: AISD was initially working to lower a projected $111 million shortfall for FY 2025-26 to $19 million. The district was expected to sell two properties for $45 million, including the former Brooke Elementary, and cut $47 million through additional strategies. 

The projected shortfall has since increased to $136 million after a $26 million land sale failed to go through this fiscal year, Montgomery said. Community pushback and pending litigation has slowed AISD's plans to sell the former Rosedale School campus.

The district now plans to cut $2 million in special education contracts and make $39 million in additional reductions to lower its projected budget shortfall to $49 million in FY 2025-26.

 
On The Business Beat
Waterloo Ice House to host 50th anniversary festival March 28

Waterloo Ice House will celebrate 50 years of live music and service in the Austin area in March. 

What you need to know: The music venue and restaurant will hold a neighborhood festival at its 2222 and 360 location, with the restaurant remaining open during regular business hours, according to a news release. The event will include raffles, lawn and carnival games, live music, a face painter, tie-dye station, permanent jewelry pop-up and other family-friendly activities. 

About the business: Waterloo Ice House first opened on South Congress in March 1976 as a neighborhood gathering place, the release states. 
Its name takes inspiration from the original settlement that later became the city of Austin. In its nearly 50 years of operation, Waterloo Ice House has hosted many musicians, including Lyle Lovett, Uncle Walt’s Band and Toni Price. 

  • 11 a.m.-4 p.m., March 28
  • 6203 N. Capital of Texas Hwy., Austin

 
travis county coverage
Travis County considers expanding affordable child care offerings with designated slots, nontraditional hours

Travis County is looking to provide guaranteed child care availability for low-income families and expand child care options for parents working during nontraditional hours.

The big picture: The $75 million Raising Travis County initiative—approved by voters in November 2024—is expected to support several programs aimed at increasing affordable child care for around 9,800 children, according to previous Community Impact reporting. The county has awarded nearly $29 million in annual funding to the Workforce Solutions Capital Area nonprofit, local school districts and other community organizations, according to county documents.

The update: Travis County is planning to pay child care providers to reserve a certain number of slots for children from low-income families, said Cathy McHorse, a consultant for the Raising Travis County initiative, at a Feb. 24 Travis County Commissioners Court meeting. The model, known as contracted slots, is anticipated to increase the supply of child care for infants and toddlers ages up to 3 years old, she said.

 
metro news monday
Check out 6 trending Austin-area stories

Learn more about trending Austin area news from March 2-5. 

1. Audit: Austin 'may not be able to' justify hundreds of millions in recent consultant spending

2. Peach Cobbler Factory to open Round Rock location this month

3. New shopping center, flex campus planned for Pflugerville neighborhoods

4. Bee Cave advances shifts to The Village at Spanish Oaks

5. First Watch debuts breakfast favorites in Bastrop March 16

6. From Petbar to wine bar: Check out 18 business updates in the Cedar Park area

 
CI Texas
4.5M Texans voted in March 3 primary, shattering past turnout records

Over 2.3 million Democrats and nearly 2.2 million Republicans voted in the March 3 election, according to unofficial election results from the secretary of state. Totaling nearly 4.5 million voters, this is “the highest voter turnout for a primary in Texas history,” the secretary of state’s office said.

By the numbers: Nearly one-fourth of Texas’ 18.7 million registered voters participated in the primaries, shattering turnout rates from recent years. Less than one-fifth of registered voters cast ballots in the 2024 presidential and 2022 midterm primaries, state election records show.

Texas’ previous primary turnout record was set in 2008, when 4.2 million voters cast ballots in high-profile presidential primaries.

Zooming in: Election data shows the most people cast votes in the high-profile U.S. Senate races that topped the ticket, with the total numbers of votes steadily decreasing down the ballot in both primaries.

There is “some certainty” that voter enthusiasm will extend to the November midterm election, Republican data analyst Ross Hunt told Community Impact during early voting.

 

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