Frequently Asked Questions
West Orange schools face a projected $14–15M structural deficit for FY27. The biggest reason is a state funding formula that thinks our town is wealthier than it is, so it keeps cutting our state aid. Here are the questions we hear most.
Why is the school budget in trouble?
The state uses a formula (SFRA) to decide how much aid each district gets. That formula looks at the total income and property values of everyone in town and decides how much we should pay locally. For West Orange, that number keeps going up — 5–15% per year. But state law only lets us raise taxes by 2%. So the state expects more, sends less aid, and the gap grows every year.
On top of that, costs the district can't control — health insurance (+10%), special education (+8.9%), transportation — keep going up. The FY26 budget already cut 57 staff positions. Without changes, FY27 projected cuts include a minimum of 70 additional positions.
Can't we just raise taxes to cover the gap?
Yes we can explore options, but we can't entirely cover the gap with taxes. The current BOE is very sensitive to increasing the tax levy much past 2.5%. State law caps tax increases at 2% per year. The district has already used up its "banked cap" (saved taxing room from prior years). It did receive some waiver eligibility this year but banked most of it. There is one tool — the health care cost levy adjustment — that could generate additional revenue, but the district has underutilized it. We're pushing for that to change.
A voter referendum is theoretically possible, but requires county superintendent approval — a process that favors wealthy districts that don't receive state aid. West Orange is unlikely to get approved while we still receive equalization aid.
Why does the state think West Orange is wealthy?
The formula uses aggregate income — total income of all residents, not median income — which can overstate a community's ability to pay. A handful of high earners pull the number up, making the whole town look richer than most families actually are. We're not sure if switching to median income would help, but we're working on it.
Home values rising faster than incomes makes it worse. The formula sees higher property values and says "this town can afford more" — but homeowners don't have more money just because their house is worth more on paper.
Is the Board of Education doing everything it can?
The BOE faces a genuinely difficult situation — the state formula is the primary driver, and that's not something the district controls. But there are areas where we believe the BOE can and should do more:
- The health care cost levy adjustment (18A:7F-3d) allows additional revenue for health benefit increases. The district has used only a fraction of what's available.
- Cost benchmarking against peer districts on staffing ratios, salaries, and per-pupil spending should be public and transparent.
- Community involvement in setting budget priorities — when there's a $14–15M gap, the community should have a voice in the tradeoffs, not just hear about them after the fact.
- State-level advocacy — the BOE should be leading the charge for formula reform, not leaving it to parent groups.
We support the BOE, but we also believe accountability and transparency are how trust gets built.
What about Pre-K — is that making the problem worse?
No. West Orange receives about $9.4M in state Preschool Expansion Aid. The district contributes roughly $926K in local funds — less than 10% of the program cost. Cutting Pre-K wouldn't save the district money; it would mean forfeiting $9.4M in state funding.
As Board President Brian Rock put it: "We're paying $1 to get $10 worth of services for our students."
Is state aid going up or down for FY27?
FY27 is actually a partial recovery. K-12 state aid is $34.5M (up $1.95M from FY26), and equalization aid increased by $3.0M. That's good news — but it doesn't fix the problem.
Equalization aid is still $4.8M less than the FY24 peak. One better year doesn't reverse a structural trend. Without formula reform, aid will continue to erode as the formula's measure of our "wealth" keeps growing.
Note: FY27 K-12 aid ($34.5M) excludes PreK aid (~$9.4M). FY26 total aid including PreK was ~$42.5M — these aren't directly comparable.
What can I do to help?
- Contact your state legislators — Senator McKeon, Assemblywoman Bagolie, and Assemblywoman Collazos-Gill represent West Orange. Tell them the funding formula needs to change. We have templates ready.
- Join WOPE — stay informed, get involved, and add your voice to a growing coalition of parents across all 13 schools.
- Attend BOE meetings — show up, ask questions, and make sure the board knows the community is watching and engaged.
- Spread the word — share woparents.org with other parents. The more voices, the harder we are to ignore.
Where does the money come from?
The FY26 school budget is about $208M. Here's where it comes from:
- Local property taxes: ~76% ($155.8M)
- State aid: ~16% ($32.6M K-12 in FY26)
- Other (federal, grants, reserves): ~8%
West Orange taxpayers cover over three-quarters of the school budget. That share has been growing every year as the state sends less.
Is this just a West Orange problem?
No. Districts across New Jersey face the same formula-driven deficits. This isn't about one town's management; it's a structural flaw in how the state distributes school funding. WOPE is connecting with other districts to build a statewide coalition for reform.
What is the Local Fair Share and why does it matter?
The Local Fair Share (LFS) is the amount the state says your town should be able to raise through local property taxes to fund its schools. It's calculated using a formula that looks at the total property values and total income of everyone in town.
The problem for West Orange: LFS has grown 36% in just three years (from $103.5M in FY23 to $140.5M in FY26). But the 2% annual tax levy cap means the district can only increase its actual tax collection by about 6% over that same period. The gap between what the state says we should pay and what we're legally allowed to raise grows every year.
Equalization aid — the state money that's supposed to close the gap — is calculated as the difference between the 'adequacy budget' (what it costs to educate our students) and the LFS. When LFS grows faster than the adequacy budget, equalization aid shrinks. That's exactly what's been happening to West Orange.