After obligating itself to pay nearly $100 million in bond money on schools Austin ISD plans to close, district records show, district leaders say they are trying to unwind as much as $72 million of those renovation contracts.
The district is moving to halt future spending by pausing work and terminating construction contracts tied to the closures, a step leaders argue could significantly reduce the final price tag. But the district has not yet exited “many” of those contracts and has not released them publicly.
The district has spent $24 million in renovations thus far on schools soon to be shuttered, and committed another $72 million in would-be improvements, for a total of more than $96 million, according to the most recent 2022 bond financial report from November.
However, Michael Mann, Austin ISD’s executive director of construction, said in a statement the district is working to terminate contracts that account for much of the remaining commitments and estimated the final amount of bond dollars spent on closing schools could be closer to $41 million.
Austin Current requested copies of the contracts under the Texas Public Information Act but that request remains pending.
Austin ISD notified vendors in October they were stopping work at schools that will close under the district’s consolidation plan and have now started the process of terminating the contracts.
The commitments represent materials and work the district has agreed to pay, but if that work has not been completed or materials have not been bought, the district would not have to pay that amount, said Mann. He added the contracts, which are not publicly available, allow the district to cancel work without vendor approval and Austin ISD “in general” does not owe any additional money to close them out.
Some contracts may be modified instead of canceled, the district said. The district expects to complete all contract changes by the end of summer.
The district’s current estimate of total bond dollars spent includes funds already used plus $5.5 million for safety, security and HVAC improvements; $6 million in invoices not yet paid or received; and $2 million for a swing space at Woolridge Elementary; and an estimated $9.1 million at Oak Springs Elementary and Martin Middle School to leave the sites safe and secure.
Final amounts will be updated on the project’s financial report once the contracts are terminated or amended.
Rachel White, associate professor of education, leadership and policy at the University of Texas at Austin’s College of Education, said she understands why taxpayers are questioning investments in schools now set to close and what district leaders knew about those schools in 2022. However, she said districts must still weigh needs for student safety and learning against long-term planning.
Even if a school is projected to close in two or three years, White said, students deserve a safe learning environment with air conditioning for when the Texas heat soars and without hazards like leaks and mold. Those needs do not disappear simply because a campus may be short lived, she said.
“I know some people may think we spent all of that money and now it’s lost, but I don’t think that that’s necessarily the case,” said White. “The investments made, maybe in some ways, were really supportive and helpful for teacher retention and student learning, even if it was just for a year or two.”
Meanwhile, questions about bond spending continue to pile up. Parents from Bryker Woods Elementary, a school previously targeted for closure, questioned $3 million bond-funded improvements during last Thursday’s board meeting as the campus’ long-term future remains uncertain. The project included HVAC and electrical repairs, a leaf guard, window improvements and security upgrades.
In public testimony before the board, Libby Chennell urged board members to commit to keeping Bryker Woods open, saying the improvements appeared to be long-term investments, not a response to short-term needs. She said the issue now centers on trust, warning that public skepticism about government spending could shape public support for future bond elections.
“Decisions like this reinforce the concern that AISD is not being a careful steward of public dollars,” Chennell said. “Bond dollars aren’t money from the past, they are borrowed dollars that we are still paying back with interest. How you treat that right now really matters.”
