Texas comptroller opens review of Austin ISD administrative spending

October 7, 2026

The Texas comptroller has opened a performance review into Austin ISD's use of taxpayer dollars during the 2025-26 school year. Comptroller Don Huffines picked Austin ISD as one of four districts to examine, excluding districts already under state takeover. The other districts named are Barbers Hill ISD, El Paso ISD and Prosper ISD.

Governor Greg Abbott asked for the review in August so legislators would have information ahead of the January session, and the comptroller plans to deliver a final report by December 31. The stated aim is to verify that the state’s K-12 funding, about $104.9 billion, is directed toward students and teachers rather than increasing administrative overhead.

Advocates and district officials say the review will add work for local staffs. Chandra Villanueva, director of budget and policy at Every Texan, said selected districts will need to reassign employees to respond to the investigation, which creates an administrative burden. She also noted that state funding rules have grown more complex, and complying with Texas Education Agency requirements often requires administrative staff.

Austin ISD has been grappling with a widening budget gap. The district’s projected deficit for 2025-26 rose from $19.5 million when the budget was adopted in June 2025 to $105 million by this past June. District leaders have cited lower student attendance, unsuccessful property sales, and higher academic-related spending as contributors to the shortfall.

To address the budget for 2026-27, AISD cut $205 million, including eliminating some vacant positions and trimming transportation services. Officials later warned the district could lose another estimated $14 million in revenue after enrollment came in lower than projected. District leaders have said enrollment has declined over the past decade and that administrative costs have also fallen.

The review has drawn political questions. State Senator Sarah Eckhardt, who is running against Huffines for comptroller, questioned the decision to exclude districts under state takeover and raised concerns about whether the review will be conducted impartially. The Texas House Democratic Caucus also questioned the criteria used to select districts, and asked why charter schools and takeover districts were not included.

Austin ISD has faced multiple separate state inquiries in recent months. In February the attorney general opened an investigation after students staged a national walkout, and in March the attorney general noted a complaint related to Senate Bill 8 compliance. The Texas Education Agency has also begun an inquiry into the district’s annual Pride Week. Results from these reviews have not been released.