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.

A drop in the local birth rate is being felt at the district level, according to Round Rock ISD demographers.

What's happening: In recent years, the number of students enrolled in the district declined from a peak of 50,953 in the 2019-20 school year to 45,952 students in the 2025-26 school year.

The details: Rocky Gardner, a representative of demographic firm Zonda Education, shared projections showing the district’s enrollment could further decline to 40,199 students by the 2035-36 school year. Gardner said that generally, people are having fewer children, which has a direct impact on the state’s attendance-based funding model.

The impact: This is a trend observed across the country, RRISD Chief of Schools Natalie Nichols said ahead of the 2026-27 school year, and not indicative of parent dissatisfaction with public education.

Facing additional budget constraints, the district is planning programmatic efficiencies if this enrollment decline bears out.

Four candidates are running for Texas lieutenant governor—the second-in-command to the governor—in the Nov. 3 election.

What's happening: Libertarian Anthony Cristo, Democrat Vikki Goodwin and Green Party candidate Kevin McCormick are challenging Republican incumbent Dan Patrick, who is seeking a fourth term.

The lieutenant governor leads the Texas Senate and can exercise the powers of the governor if the governor dies, resigns, is removed from office or is absent from the state, according to the Texas State Historical Association.

How we got here: Patrick won his Republican primary race in March, while Goodwin advanced to the general election after beating another Democrat in a May primary runoff, Community Impact reported. Cristo and McCormick were selected as their parties' respective candidates during nominating conventions in April.

Looking ahead: Early voting in the midterm election runs from Oct. 19-30, and Election Day is Nov. 3.

Check out stories trending in the Austin area Aug. 31-Sept. 3. 

1. Georgetown to reduce speed limit on Ronald Reagan Boulevard

2. Rooftop padel club planned at downtown Austin Convention Center garage

3. New East Austin supportive housing offers exit from homelessness

4. Round Rock residents to see higher water, wastewater, sewer bills

5. Bee Cave rejects permit for VVater research lab

6. Hays County secures over $39 million for railroad overpass at Centerpoint Road