The Austin Independent School District is one of four Texas school districts selected by the comptroller for a new state review of how public school systems spend taxpayer money.

Trustees had to slash an $181 million deficit at the end of the last school year, cutting more than 500 staff positions, student transportation options and campus programming.

Texas Comptroller Don Huffines announced Monday that his office will examine Austin, Barbers Hill, El Paso and Prosper ISDs as part of a review that Gov. Greg Abbott requested in August. The review will look at whether district spending complies with state law and how much money goes toward students, classrooms and teachers compared with administrative and other noninstructional expenses, the comptroller’s

office said.

Austin ISD delayed hard choices for years. Now it faces a $181M deficit.

“This review is an important step to ensure transparency, accountability, and the responsible use of public funds,” Huffines said Monday. “Our office is committed to providing a clear assessment that helps Texans understand how their education dollars are being used.”

Austin ISD did not immediately respond to a request for comment.

The review comes after Austin ISD closed 11 schools this fall

and undertook a widespread budget-cutting effort. Trustees approved this school year’s budget in June after district leaders identified $205 million in cuts.

The district’s financial woes are caused in part by long-term enrollment losses. Austin ISD

now serves fewer students than at any point in recent history, losing around

2,300 students before the 2026-27 school year. As of Sept. 18, Austin ISD had almost 65,951 students enrolled, compared with the 68,329 students it had projected, officials have said.

Abbott ordered the state review of school district spending on

Aug. 19 as lawmakers prepare to return to Austin in January. He argued that an increase in state spending on public education should come with greater scrutiny of how districts use taxpayer funding. The state budget includes $104.9 billion for K-12 education, according to Abbott’s office.

The governor asked Huffines to select “up to four ISDs of varying size and geographic location for review.” It was not clear how or why Austin ISD was chosen for the audit.

Huffines’ office said it plans to finish its report by Dec. 31, ahead of the Legislature’s next regular session in January.

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This article originally published at Texas comptroller selects Austin ISD for new state review of school district spending.