AISD Ponders a Budget Fix

Like just about every other governmental agency, the Austin Independent School District is facing a bleak budget cycle. Now Superintendent Meria Car­star­phen has implemented an administrative hiring freeze and is asking the board of trustees to consider the extraordinary step of declaring financial exigency, allowing her to make major structural reforms to stanch the budget bleeding.

Current calculations show that the district needs an extra $15.7 million in fiscal year 2010: $8.6 million for priority first-year projects in the new strategic plan and $7.1 million to cover a predicted tax shortfall. In 2008, voters approved a property tax increase of 3.9 cents per $100 valuation. At the time, the board of trustees was criticized by Education Austin President Louis Malfaro for not proposing a larger increase to give more long-term stability. Now, with property values sinking, the district is left with a structural deficit. AISD Chief Finan­cial Officer Nicole Conley-Abram said, "Basically, our expenditures are outpacing our predicted revenues, so in order to eliminate the structural deficit, we have to pare down our expenditures."

While the 2010 fiscal year budget is still in its predrafting stage, Carstarphen has suggested that the board declare financial exigency. Under the Texas Education Code, this is an emergency state that allows districts to terminate contracts early. Carstarphen suggested that this time exigency is about taking a structural approach to running the district. She said: "We're so used to accumulating the debt and unleashing huge program reductions as our budgeting style. To me, those things just show a lack of foresight."

Echoing that sentiment, AISD board of trustees President Mark Williams said: "Everyone wants to plan, everyone wants to have a balanced budget, and everyone says they want us to reach all these goals, but no one's willing to say, 'What's it going to take to do that?' What she's done is accelerated the conversation."

The board is scheduled to discuss the budget at its Feb. 8 work session, and Carstarphen expects her request to be discussed then. If the trustees decide to move forward, a vote could take place as early as their Feb. 22 regular meeting. However, board Vice President Vince Torres said he was "surprised" by Carstarphen's request and will wait for more detailed staff presentations on the budget before considering such a radical step.