The Austin Community College District (ACC) Board of Trustees unanimously approved the College’s fiscal year 2027 (FY27) operating budget during its regular meeting on Monday, July 6, 2026.

The $583 million balanced budget includes increases to employee compensation, maintains student tuition and mandatory fees for the 13th consecutive year, preserves the College’s $23-per-hour minimum wage, and funds continued enrollment growth and campus improvements.

“Our responsibility as a Board is to ensure the College remains financially strong today while positioning it for tomorrow,” said ACC Board of Trustees Chair Sean Hassan. “This balanced budget reflects careful planning, responsible stewardship of taxpayer dollars, and our continued commitment to investing in the people and programs that make ACC such an important resource for Central Texas. I am so proud of the work the Board continues to do to support the College, while honoring our commitment to taxpayers.”

The FY27 budget takes effect September 1, 2026.

Planning Conservatively for a Changing Financial Landscape

College leaders presented a balanced budget despite several anticipated revenue challenges affecting community colleges across Texas.

ACC is preparing for its first projected decline in property tax revenue in 17 years as property values level off and state legislation changes local tax collections. The College also continues to monitor implementation of the state’s revised community college funding model while awaiting final performance funding allocations.

Rather than relying on optimistic revenue assumptions, the budget reflects a conservative approach that positions the College to remain financially stable regardless of changing economic conditions.

Investing in Employees

The FY27 budget includes a comprehensive employee compensation package designed to recognize employees while balancing the College’s long-term financial sustainability.

“The budget would tell us not to do this. For the first time in years, we’re navigating declining property values and significant revenue pressures that have required difficult decisions,” said ACC Chancellor Dr. Russell Lowery-Hart. “I’m proud of the work our leadership team has done to put ACC in a position where we can continue investing in our employees. At many colleges facing challenges like this, the easy answer would be to say no to raises. We know our greatest investment is our people because they’re the ones changing students’ lives every day.”

Following feedback from trustees and employee associations during earlier budget discussions, College administration increased the proposed compensation adjustments to include both an annual salary increase for employees and an additional one-time, lump-sum stipend.

The package that was approved includes:

  • A 2% annual salary increase for eligible employees
  • A one-time lump-sum payment equivalent to 2% of average employee pay (see chart below)
  • Continued investment in ACC’s $23-per-hour minimum wage, the highest among public-sector employers in Texas
  • Continued payment of the employee portion of health insurance despite an approximately 7.5% increase in ERS premium rates

Lump-Sum Payment
The one-time lump-sum payment is equivalent to 2% of average ACC employee pay, and will be distributed in August.

Employee TypeLump-Sum Payment
Full-Time Faculty & Staff$1,700
Adjunct Faculty With 15+ Lecture Equivalent Hours (LEH)$750
All Other Employees (Hourly employees and adjuncts with less than 15 LEH in FY26)$400

The full-time faculty and staff rate assumes 100% full-time equivalency (FTE). For employees with less than 100% FTE, the payment will be prorated accordingly. For example, a 75% FTE staff would receive $1,275.

Hourly employees must have worked the last 6 months and at least 250 hours. Hourly employees that are grant funded (e.g. Federal Workstudy) are excluded.

Adjunct faculty must have taught in the spring or summer semester.

Other Expenses

The Board also maintained tuition and mandatory fee rates for the 13th consecutive year, continuing ACC’s commitment to affordability for students across Central Texas.

To preserve campuses and learning environments across the district, the budget dedicates $10.4 million toward repair and renewal projects, including:

  • $6.9 million for building systems maintenance
  • $1 million for furniture replacement
  • $2.5 million for contingency projects and programmatic renovations

These investments help ensure ACC facilities continue to support students, employees, and the communities the College serves.

Watch the recording of the budget adoption HERE. Recordings are usually available by the Thursday following the meeting.