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Austin ISD projects $63 million budget shortfall as sale of Rosedale property stalls

Austin ISD is projecting a larger budget shortfall for this fiscal year after the sale of a former school property has been delayed.

The district is looking to further cut costs next fiscal year by staffing campuses to more closely reflect enrollment, which has continued to decline each school year. 

What's happening: AISD is aiming to reduce a projected $137.41 million budget shortfall to $63.26 million in FY 2025-26 through $26.41 million in cost-saving strategies, including a $16.9 million property sale.

In late January, the AISD board of trustees approved selling the former Brooke Elementary campus to Trammell Crow Corporation and High Street. The development is slated to serve as a multifamily apartment complex with market-rate and affordable units above ground-floor retail, an AISD spokesperson said.

In case you missed it: AISD's planned cost savings have been cut by $26 million due to the sale of a district property being delayed, Montgomery said. Community pushback and pending litigation has slowed a proposal to develop the former Rosedale School in a six-story apartment complex.

 
On The Transportation Beat
Austin readies for launch of teledriving technology

Austin is readying for the arrival of teledriving vehicles, or cars remotely controlled by humans, that'd join several autonomous vehicle operations as emerging mobility technologies that have become commonplace on city roadways.

The details: The city is currently in negotiations with a company seeking to bring its teleoperations to Austin in the coming months. The cars would be controlled via the cellular network and could face local oversight, unlike AVs.

City staff are actively working to establish basic operating standards for the new vehicles once they arrive. Due to competitive issues and proprietary information, the company now under consideration can't be revealed as of mid-February.

Teledriving could officially launch in town this spring or summer once an initial civic agreement with the business is finalized, likely with a smaller fleet in a small footprint like downtown. Staff are also planning to develop a new city ordinance for City Council consideration covering basic rules and guidelines for the technology.

 
Metro News Monday
Top 6 trending stories in the Austin metro

Check out the top 6 most-read stories from Feb. 9-12 in the Austin area. 

1. Unofficial voting results show Na’Cole Thompson wins race for Leander mayor

2. Round Rock officials weigh neighborhood compatibility for Skybox data center

3. True Texas BBQ brings brisket and more to Bastrop H-E-B

4. Twice the Ice changes ownership in Georgetown

5. Portion of Gilleland Creek Trail in Pflugerville to close

6. From tacos to trims: Check out 9 Liberty Hill business updates

 
CI Business
A new Allday Pizza and another Tiny Grocer: Check out these business updates in North and downtown Austin

From coffee in the morning to a Persian dinner by evening, check out these businesses that are now open, coming soon or in the news in North Austin.

Now open
Roya
A new Persian restaurant from Amir Hajimaleki—chef and owner of District Kitchen and Cocktails, Oasthouse Kitchen and Bar, Keepers Coastal Kitchen, and Daisy Lounge—is now open.

  • Opened Feb. 11
  • 7858 Shoal Creek Blvd., Austin

Coming soon
Tiny Grocer
The local specialty grocery store from Steph Steele will open its third location in East Austin, replacing what was once Longhorn Meat Market.
  • Opening in 2026
  • 2411 E. Martin Luther King Jr. Blvd., Austin

What's next
Allday Pizza
Allday Pizza is planning to open a third location in Northwest Austin, according to a filing with the Texas Department of Licensing and Regulation.
  • 3720 RR 2222, Austin

 
CI Texas
Census data: Texas continues to grow, but people are moving here at a slower rate

Texas gained more new residents last year than any other U.S. state, recently released U.S. Census Bureau data shows. Yet the Lone Star State’s overall population growth slowed significantly amid a nationwide reduction in immigration from other countries.

The big picture: Texas grew by 391,243 residents in 2025, bringing the state’s total population to 31.7 million. This includes:

  • Domestic migration: Over 67,000 people moved to Texas from other states.
  • International migration: Over 167,000 people moved to Texas from other countries.
  • Natural change: There were roughly 157,000 more births than deaths in Texas.

The state grew by 1.2% from July 1, 2024, to July 1, 2025, which is more than twice the national growth rate of 0.5% in the same period. This marks a slowdown in Texas’ growth since the COVID-19 pandemic.

Worth noting: Suburban communities outside the state’s urban population centers, such as cities and towns in Montgomery, Tarrant and Williamson counties, saw the most growth due to migration in recent years, according to data from the Texas Demographic Center.

 

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General Manager

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