Austin Voters Approved Property Tax Hike in 2024
The 2024 ballot measure increased school taxes by 9.1 cents to help address a large district deficit.
Updated on Sept. 21, 2026 in Philanthropy
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In your area, do you support increasing property taxes to provide additional funding for public schools?
In 2024, 58 percent of Austin voters approved Proposition A to raise the local school property tax rate by 9.1 cents per $100 of value. The tax increase was intended to help the Austin Independent School District cover a $181 million budget deficit.
Why it matters
The measure sought to fund teacher and staff salaries, but the district faces significant financial strain as a result of the state-mandated recapture system. This system requires a substantial portion of local tax revenue to be sent out of the district, limiting the funds available for local operations.
The tax increase generated $171 million in total revenue, yet $130 million was sent out of the district via the state recapture system. Following this, the Austin Independent School District reported a $181 million deficit and plans to close 10 schools.
The players
Austin Independent School District
This is the primary public school system serving students in the Austin area.
Committee for Austin's Children
This political organization advocated for the passage of the 2024 property tax increase.
Vikki Goodwin
She is a political candidate who contributed funds to the campaign supporting the tax measure.
Gina Hinojosa
She is a political candidate who supported the local tax initiative through campaign donations.
The details
The Committee for Austin's Children received over $858,000 in donations to support the campaign, including $1,500 contributions from the Vikki Goodwin and Gina Hinojosa campaigns in September 2024. Despite the revenue boost, the district is slated to close 10 schools for the 2026-2027 school year.
Timeline
In 2023, the Texas legislature passed a large public school funding bill.
In 2024, voters approved the Proposition A tax increase.
In September 2024, Goodwin and Hinojosa campaigns donated to the committee.
In October 2024, Hinojosa and a Talarico-linked PAC donated to the committee.
For the 2026-2027 school year, Austin ISD will close 10 schools.
Market Landscape
The district's financial situation highlights the intense pressure placed on urban school budgets by the state-mandated recapture system. This policy forces districts to export significant revenue, significantly altering how local tax increases translate into actual operational capacity.
Residents and taxpayers in Austin saw their monthly tax bills increase as a direct result of the passed proposition. The ongoing budget deficit and school closures now pose significant uncertainty for families regarding future school assignments and service levels.
The takeaway
The gap between tax revenue collected and funds retained underscores the complexity of school finance in the state. Residents should stay informed about how state policy influences the utility of local ballot measures on their property tax bills.
Further reading
For more information on local initiatives, visit the Austin Philanthropy section.
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In your area, do you support increasing property taxes to provide additional funding for public schools?
