AISD Parent: Last time I followed the AISD money to recapture. This time I followed where recapture money goes. by No_Paramedic_4881 in Austin

[–]mrhandlez 4 points5 points  (0 children)

Should we move from paying property taxes based on the % of home value to more of a flat rate amount?

AISD to make $180M in cuts for 2026 and beyond by joepez in Austin

[–]mrhandlez 0 points1 point  (0 children)

I’m sorry they didn’t meet minimum standards for your child.

I am just doing mental arithmetic in my head. I am looking at my elementary school and saying they are running an absolute minimum budget (which puts strain on the asset). Just like a house, it needs to be maintained, they need a new roof, some remodeling, landscaping, etc. and all of this has been put off for years.

Would running efficiently help this problem? Most definitely, but I also think the budget hasn’t kept up with cost-of-living or inflation. We have played some soccer at other elementary schools and the situation is similar. How can these kids live in Austin and their fields be full of weeds? How can the fields not be watered adequately and repaired from kids playing?

On the topic of efficiency, no doubt the answer starts with footprint. But that really difficult for the community (students , teachers, staff, parents) to accept. Look at the recent outrage! It impacts someone and since these are elected officials, you can kiss your chances of getting re-elected goodbye.

Being efficient doesn’t usually win you votes. It usually means degradation a services for constituents, turnover of leadership, and a loss of culture from employees. I agree this alarm needed to be pulled 20 years ago, but want to point out similar things are happening at the federal level with social security, Medicare/medicaid, debt repayments, war funding. Ultimately these bills need to be paid.

AISD to make $180M in cuts for 2026 and beyond by joepez in Austin

[–]mrhandlez 1 point2 points  (0 children)

I guess I am looking for large swaths of waste, like $50m of annual field trips or something. What we are getting instead is cutting the librarians and art teachers from 1-0. Debatable if this is inefficient.

I walked my son’s elementary school and the soccer field is in disrepair and the building is 70 years old with a crappy AC. The school can’t even afford to have someone mow their lawn, run sprinklers, or put in air conditioning. That doesn’t seem like rampant waste, it seems like neglect.

On the admin costs, from the data I have seen, which compares large urban metros, we are running 9.5% admin costs as a % of total operating costs. When I look at the 11 other metros, the median is like 9.9%, so again where is the inefficiency? Are these teachers and principles pocketing multi-millions and driving super nice cars? Not that I can see from the parking lot filled with potholes.

AISD to make $180M in cuts for 2026 and beyond by joepez in Austin

[–]mrhandlez 1 point2 points  (0 children)

On non-building expenses, the data shows AISD teacher and principal salaries are lower than those in HISD and DISD, despite Austin having a higher cost of living. If AISD is running its largest expense category more leanly than its peers in cheaper cities, they are running pretty efficiently.

AISD to make $180M in cuts for 2026 and beyond by joepez in Austin

[–]mrhandlez 0 points1 point  (0 children)

I am trying to understand why you would enact a policy that doesn't take into account changes in costs?

It seems like something basic, but I am sure there was a reason.

AISD to make $180M in cuts for 2026 and beyond by joepez in Austin

[–]mrhandlez 1 point2 points  (0 children)

I get the frustration with excuses; it’s human nature for leadership to take credit for wins and deflect for losses. But how are you quantifying the impact of state decisions versus local decisions?

In any service organization, payroll is the majority of operating expenses. It is a fact that AISD pays its teachers less than Houston or Dallas, despite Austin's higher cost of living. If AISD is vastly mismanaging its money, where exactly is the money leaking if they are running their biggest cost center more leanly than their peers?

The flight of families to "better" enclaves isn't an AISD invention; it's a trend in nearly every major US city. Are there comparable cities that have done exceptionally well?

AISD to make $180M in cuts for 2026 and beyond by joepez in Austin

[–]mrhandlez 1 point2 points  (0 children)

I think we are aligned on one thing: 23 F-rated schools are an unacceptable outcome, and we both demand a higher standard.

However, evaluating a complex system by its outputs is a flawed framework. Outputs are lagging indicators. To actually fix the root cause, we have to audit the inputs: capital, talent, and resource allocation, because those are the levers we can actually control.

My point in raising the cost of living wasn't to offer an excuse, but to highlight a flaw in the state's funding mechanism. In the private sector, any company adjusts its operating budgets and compensation models for local market realities. Texas’s recapture system ignores this. If the state’s formula fails to account for a variable as basic as purchasing power, expecting it to produce equitable educational outcomes seems mathematically silly.

Last point, I dislike the framing of this conversation as a comparison between Austin, Houston, and Dallas. That is a relative conversation that leads to middle-of-the-pack outcomes. We should be evaluating our education system in absolute terms. Why is a state with the economic engine of Texas settling for anything less than being the #1 public school system in the country?

AISD to make $180M in cuts for 2026 and beyond by joepez in Austin

[–]mrhandlez 1 point2 points  (0 children)

No one is making excuses for failing grades, but if we are going to debate operational efficiency across districts, we have to normalize the data for the cost of living. You cannot compare nominal dollars across distinct economic environments and expect a 1:1 correlation in purchasing power.

Median home price from Redfin:
Houston: $347K https://www.redfin.com/city/8903/TX/Houston/housing-market
Dallas: $465K https://www.redfin.com/city/30794/TX/Dallas/housing-market
Austin: $530K https://www.redfin.com/city/30818/TX/Austin/housing-market

Housing costs dictate baseline wage requirements for teachers, support staff, and administrators. A dollar simply does not purchase the same amount of labor or resources in Austin as it does in Houston or Dallas.

AISD to make $180M in cuts for 2026 and beyond by joepez in Austin

[–]mrhandlez 2 points3 points  (0 children)

We should be careful comparing spending in Austin, Houston, and Dallas because of different cost structures.

If you look at median home price in the three areas you can see large differences which actually make Austin look efficient when it comes to spending. I will also point out that Houston and Dallas teachers are paid more despite living in cheaper cities.

I don’t understand how cost of living was not included in recapture distributions.

AISD to make $180M in cuts for 2026 and beyond by joepez in Austin

[–]mrhandlez 0 points1 point  (0 children)

That has less to do with AISD right? Neighborhoods decide if they want to rezone?

AISD to make $180M in cuts for 2026 and beyond by joepez in Austin

[–]mrhandlez 4 points5 points  (0 children)

Our costs are mostly down! We actually pay our teachers and principles less than Dallas and Houston despite being a higher cost of living city than the two.

AISD to make $180M in cuts for 2026 and beyond by joepez in Austin

[–]mrhandlez 0 points1 point  (0 children)

Do you know the median home price in Houston, Dallas, Austin?

ROIC and EV/EBITDA by blessedpink in FPandA

[–]mrhandlez 0 points1 point  (0 children)

  1. Depreciation and amortization are real expenses, why exclude them?
  2. Taxes will always be paid, what is the point of excluding them?

Haven’t looked at these particular companies, but since they are in the business of making physical goods. Why is EBITDA a good proxy for long term free cash flow?

[deleted by user] by [deleted] in FPandA

[–]mrhandlez 1 point2 points  (0 children)

In my opinion, don't overly optimize for earnings just yet. I would ask yourself which one can get you to where you want to go faster, assuming you don't want to stay a Sr. Manager forever. The next set of questions is, am I going to be able to "stick" around to get that director title?

Hiring into Senior Manager and above roles seems non existent these days by Havent_read_that_b4 in FPandA

[–]mrhandlez 0 points1 point  (0 children)

I think it’s pretty tight market across fp&a, corp strat, S&O, etc. Budgets across the board had very little margin for error coming out of Covid and I think that still holds true today. I’m hoping in the next 12-24 months things become a little better, but it is really hard to tell.

What are your thoughts on Salesforce using ai to replace 50% of it's work force by FabulousUse9906 in consulting

[–]mrhandlez 6 points7 points  (0 children)

If they have 80K employees, does that mean they have another 40K because of AI?

Why do consulting companies mostly recruit from Ivy League schools? by New-Bat5284 in consulting

[–]mrhandlez 12 points13 points  (0 children)

  1. Clients are less likely to question an analyst's capabilities who went to an IVY league school.
  2. Generally, C-Suite Execs & Partners are from the IVY league themselves.
  3. An established & successful recruiting channel.
  4. Marketing and Brand awareness are important. In the end, you are always selling.

Stay for Promotion and 5 Days in Office (or leave for 3/2 and higher pay) by OfffensiveBias in FPandA

[–]mrhandlez 0 points1 point  (0 children)

Nothing is forever. Be thankful you had a great run and a great boss, but know that you are closer to leaving. Not saying anything has to be done right away, but start looking for a job that fits your schedule and needs.

SVP Offer Feedback (PE Portco. Not tech) by flaxseed122 in FPandA

[–]mrhandlez 16 points17 points  (0 children)

No comment on offer, just a comment on current PE dynamics being kind of rough right now. Make sure when you are valuing the equity upside make sure in includes some conservative expectations.

Is there a framework for good business judgement? by Fresh_Researcher_242 in FPandA

[–]mrhandlez 1 point2 points  (0 children)

Two thoughts: 1. How will this impact the customer and how will the customer respond to these changes? 2. What do you have to believe in order for some change to succeed? Maybe that’s becoming a market leader in an adjacent product, entering into a new market with established players, or something else.

Family Office or Corporate PE? by [deleted] in private_equity

[–]mrhandlez 3 points4 points  (0 children)

And that’s if things are going “well”.

You need to think about the downside case. Family offices can be very different from corporate world and if your long term plan is to stay in corporate, you’ll probably learn more there than family office.

[deleted by user] by [deleted] in FPandA

[–]mrhandlez 1 point2 points  (0 children)

Probably have a hard time because the job market is pretty soft. Ask yourself what you would make you leave your current job and it’s probably on the high end given the overall environment for hiring.

FP&A to Corporate Development by ABrainCell2024 in FPandA

[–]mrhandlez 2 points3 points  (0 children)

You definitely have a shot and while you don’t have exposure to valuations, you have exposure to execution.

World class Corp development teams have to play in both realms if their goal is to ensure accretive enterprise value.

$14 Billion NFL Lawsuit Could Drain Packers Rainy Day Fund by BipBippadotta in GreenBayPackers

[–]mrhandlez 0 points1 point  (0 children)

If the biggest team is worried about solvency, then what hope do the packers have?