AISD Balances Its Books With What Robin Hood Left Behind

Amid a superintendent switch and a startling staff exodus, Austin ISD settled on a nearly $1.9 billion budget for its fiscal 2023 (through the next school year) on June 23 – but nearly half of that cash is owed to the state of Texas.

The recapture system, often called "Robin Hood," was instituted in 1993 after the state's wide disparities between wealthy and poor school districts had been ruled in violation of the Texas Constitution. It was not designed with a district like AISD in mind, one that includes some of the most expensive dirt in Texas but that also serves tens of thousands of high-need students from the disinvested and neglected parts of town. For years, the enormous AISD recapture payment – more than the next three districts combined – has left the district struggling to meet its basic needs, so it's been dipping into cash reserves. AISD Board of Trustees Prez Geronimo Rodriguez noted that next year's budget is balanced without going into reserves, the first one since 2017. That's crucial because the district's excellent bond rating – like a credit score for a public agency – could be threatened if the board dips into cash reserves for the 2022-23 budget.

Because property taxes have skyrocketed in the Austin area, the district's Chief Financial Officer Eduardo Ramos said the district's $846 million recapture payment is more than twice what staff had expected. He said the district is looking to ask the state for a discount in exchange for making the massive recapture payment on time. "A 10% discount would save us over $84 million and we can do a lot for employees with $84 million," Ramos said.

Even if the district gets no discount, though, it has still managed to make large investments in compensation to retain employees. The district saw a record number of resignations during the 2021-22 school year with 2,106 staff members leaving – a 22% increase over the previous school year – and to address that, next year's wages will rise across the board. At the same time, AISD will eliminate close to 600 positions including vacant positions for bus drivers, AISD police, and central office staff. Teachers will get a $1,000 base pay raise, and a 2% midpoint raise, which means the raise will be based on the median pay found in that pay grade.

That 2% raise will cost the district a total $6.3 million. Then teachers will get bonuses as well: a $2,000 retention stipend for full-time educators, $1,000 for part-time, and $500 for teachers who have been with the district for five years or longer. Ramos said AISD aims to become the highest-paying district for teachers in Central Texas by 2025. The district will also spend $8 million raising its minimum hourly wage from $13.50 to $16 and $1 million to increase minimum hourly pay for bus drivers from $17 to $21.