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.

The developer behind a new resort planned at Circuit of the Americas is seeking to reduce its required public parkland contributions and other environmental enhancements around the project.

Expansion at COTA has taken place in recent years under a planned unit development, or PUD, covering over 1,000 acres in far East Austin. That city zoning designation applies to larger, more complicated mixed-use projects and can grant broad building flexibility in exchange for "superior" improvements on site. While hotel elements were envisioned in the original PUD outline passed in 2020, an expanded $925 million project from RIDA Development is now moving through city review.

The PUD states that any hotel development at COTA wouldn't be allowed to open its doors until an 11.38-acre park and soccer fields were dedicated to the city. However, developers are now seeking to revise that requirement to allow them to donate an off-site park, or a fee payment city staff have graded at a lower value.

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

City of Austin officials held a groundbreaking March 5 to kick off efforts to redevelop Burnet Road with $64 million worth of various safety and mobility improvements.

The overview: The project is slated to reach completion in three segments between mid-2027 and late 2028, bringing upgraded traffic signals, pedestrian and bike infrastructure, bus stop improvements, and more. Austin’s 2016 Mobility Bond allocated $482 million toward corridor improvements across the city, with Burnet Road being one of the nine corridors identified.

The local impact: Dozens of businesses line Burnet Road, and some owners have voiced concerns with the city’s communication about the project. 

“The reality right now makes it so any non-car-based transportation ... is dangerous," said Tom Rosen, owner of Rosen's Bagel Co. along C3. "I think most business owners will be in favor of [the project], but we would love to ... have a little bit more proactive communication.” 

Looking ahead: City officials said all business access will be maintained throughout construction, and that the project is in-line with District 7's broader vision.