Good morning,
With Austin City Council's marathon session now concluded, the focus shifts to implementation of major housing policy changes and the urgent timeline facing Austin ISD. Today brings new deadlines for civic engagement as both the city and school district advance critical decisions that will shape Austin's future. Here's what you need to know.
TL:DR
Council approved expanding Homestead Preservation Districts yesterday, doubling tax increment funding for affordable housing.
Austin ISD moves forward with closure plans for 12 schools after three consecutive state failures, with public input deadline approaching.
The November 4 property tax election will determine funding for $110 million in city services.
I-35 cap project costs have ballooned to $1.4 billion, with city commitment deadline in March.
Yesterday's Results: Council Approves Major Affordable Housing Expansion
Austin City Council approved two transformative affordable housing measures yesterday that will significantly expand the city's primary anti-displacement tool. Council voted to extend the existing Homestead Preservation District in East Austin for 10 years while doubling its tax increment funding from 20% to 40%. Simultaneously, they directed staff to study creating new districts in North Central and Southeast Austin targeting areas "highly impacted by gentrification."
Under state law, these districts capture property tax revenue from increasing property values and dedicate it exclusively to affordable housing development and preservation. To qualify, areas must have fewer than 75,000 residents, poverty rates at least double the city average, and median incomes below 80% of the area median family income—approximately $54,000 in Austin.
Source: Austin City Council Resolution No. 20250911-046 and Resolution No. 20250911-047, September 11, 2025
How This Affects You
Property owners in new districts: When your property value increases, a portion of the additional tax revenue will fund affordable housing rather than general city services. This creates a direct link between neighborhood investment and anti-displacement efforts.
Renters and homebuyers: New districts could preserve existing affordable apartments and create new income-restricted housing options in gentrifying areas like St. Johns, Montopolis, and Dove Springs.
All residents: Check if your area qualifies by reviewing census tract data at austintexas.gov/hpd when staff reports return in December. Attend the December Council meeting to comment on proposed boundaries.
The Rundown
School Crisis Accelerates: 12 AISD Campuses Face Closure Vote
Austin ISD's financial and academic crisis reached a critical juncture this week as the district confirmed closure and consolidation plans for 12 schools that received three consecutive "F" ratings from the Texas Education Agency. The affected schools serve approximately 3,200 students combined and represent 10% of the district's elementary and middle school campuses.
The closures are driven by both academic accountability requirements and a $20 million structural deficit—equivalent to 1.1% of AISD's $1.86 billion annual budget. This deficit has grown as the district simultaneously faces declining enrollment (down 8,000 students since 2020) while sending $940.5 million annually to the state through the "recapture" system.
Most critically, three schools (Webb, Dobie, and Burnet middle schools) have received four consecutive failing ratings. A fifth consecutive failure would trigger mandatory state intervention that could replace the entire elected school board with state-appointed managers.
Source: Austin ISD Superintendent Letter, September 4, 2025; Texas Education Agency Accountability Ratings 2025
How This Affects You:
Parents of affected students: Verify your school's status at txschools.gov using your campus name
All AISD families: State takeover would affect district-wide policies, not just failing schools
Attend October 9 information session to review specific closure plans and timeline
Submit written feedback to [email protected] through November 8
November Property Tax Election: $110 Million Decision
Austin voters face a critical choice on November 4 regarding a 5-cent property tax increase that would raise the city's rate to 57.4 cents per $100 of assessed value—the highest in the city's history. The increase would generate $110 million annually, representing a 16.9% jump in property tax revenue.
For context, this increase alone ($302.64 annually for typical homeowners) exceeds last year's total city tax increase of $188.02. When combined with utility rate increases, the total annual impact reaches $417.24 per household—equivalent to $34.77 monthly. This represents the largest single-year increase in city-related costs in recent Austin history.
The election was triggered because the proposed rate exceeds the state-mandated voter approval threshold by exactly 5 cents. Without voter approval, the city faces significant service cuts to balance the budget.
Source: City of Austin Ordinance No. 20250813-001; Travis County Elections Division
How This Affects You:
Check your voter registration status at travisvotes.com by October 7 (registration deadline)
Review the complete ballot language and fiscal impact statement at austintexas.gov/budget
Early voting begins October 21 at locations listed at travisvotes.com
By the Numbers
$940.5 million That's the amount Austin ISD sends to the state annually through "recapture"—the system requiring property-wealthy districts to share local tax revenue with property-poor districts. This represents 50.5% of AISD's $1.86 billion budget, making Austin one of the largest contributors to state school funding while simultaneously facing its own budget crisis.
Source: AISD FY 2025-26 Budget
The Civic Calendar
Oct 7th: Voter Registration Deadline for the November 4 municipal election.
Oct 9th: AISD Board information session on the proposed school closure and consolidation plans. Open to public attendance and comment.
Oct 21st - Nov 1st: Early voting period for the municipal election. Open to all registered voters.
Nov 4th: Municipal Election Day. Voters will decide on the proposed property tax increase.
Nov 9th: AISD Board Special Meeting to hold a final vote on school closures. Open to public attendance and comment.
— The CivicIn7 Team
