FAQ & Terminology
This guide is designed to help our community understand key aspects of the West Orange Public Schools budget, how decisions are made, and how to get involved. We've also included plain-language explanations of important terms and current budget changes, with sources linked for verification.
🔍 What's Going On?
West Orange Public Schools faced an initial projected gap of approximately $11.5 million for the 2025–2026 school year. After applying a 2.3% levy increase and implementing approximately reductions (including staff reductions/layoffs and program cuts), the budget was balanced for the 25/26 school year. However, the fiscal challenges will remain for the foreseeable future. Several categories of revenue have decreased, while mandated costs (like health benefits and out-of-district special education tuition) have increased substantially and increasing revenue will remain a significant challenge.
❓ Frequently Asked Questions
Why is West Orange spending over $900,000 on Pre-K? Can we afford that right now?
West Orange receives substantial state funding to support its universal preschool program. For the 2025–26 school year, the district is allocated approximately $9.43 million in Preschool Expansion Aid from the New Jersey Department of Education.
However, the state funding requires a town contribution. The district has budgeted an additional $926,000 for that purpose.
At the May 5 Board of Education meeting, Board President Brian Rock emphasized:
We're paying $1 to get $10 worth of services for our students. And that's a great return on investment. I don't know how else to say that other than this is the single greatest investment that we have made, and I'm proud of that.
In essence, while the district contributes local funds, the majority of the program is state-funded, and discontinuing it would mean forfeiting significant state aid while still being responsible for early childhood education mandates.
Can the community help fund the school budget through donations or a nonprofit?
Yes, the community can support the school district through donations or by establishing a nonprofit organization. However, there are important considerations and limitations to be aware of:
🚫 Limitations on Funding Core Staffing
According to the New Jersey Department of Education's regulations (N.J.A.C. 6A:23A), school districts are expected to maintain fiscal accountability and cannot rely on private donations or PTA funds to cover core staffing expenses, such as salaries for full-time teachers or essential support staff.
The New Jersey PTA also advises against using PTA funds to subsidize public school staffing, emphasizing that such practices can lead to inequities and undermine the responsibility of the state to adequately fund public education.
✅ Appropriate Uses of Community Funds
Community contributions could effectively be used used for things like the following:
- Enrichment programs and extracurricular activities
- Technology enhancements
- Arts and STEM initiatives
- Specific facility improvements and beautification projects
🏫 Examples from Other Districts
Districts like Montclair have established organizations such as the Montclair Fund for Educational Excellence (MFEE) to support their schools. MFEE raises funds for programs that enhance educational experiences without replacing core public funding.
If West Orange chooses to pursue this route, forming a district-wide nonprofit in collaboration with school officials can help ensure that funds are used effectively and equitably to support the district's goals.
Who makes the decisions on how the school budget is used?
Budget authority ultimately resides with the Board of Education, but is largely developed by the Superintendent and Business Administrator:
- Board of Education (BOE): Sets policy, approves the budget.
- Superintendent: Manages operations, proposes the budget.
- Business Administrator: Prepares financials, ensures compliance.
How many students and staff are in the district?
What percentage of the school budget comes from state vs. local funding?
Total Budget (2025–2026): ~$208.4M
- Local Property Taxes: $158.95M (~76.3%)
- State Aid: $32.58M (~15.6%)
- Other (federal, grants, reserves): ~8.1%
Source: 2025–26 Budget Presentation
Why did West Orange's state funding decrease?
- NJ's S2 formula reallocates aid based on district wealth and need.
- West Orange's rising property values/income mean less aid.
- Aid is shifting to districts considered underfunded by the S2 formula.
- Despite enrollment growth and special education costs, aid is dropping.
- In 2025–26, state equalization aid fell by about $1M, and West Orange just missed eligibility for health and enrollment-based cap waivers — further straining flexibility.
What is the process for getting on the ballot as a school board member?
To run for a local school board seat in NJ, you must meet these requirements:
- Be a U.S. citizen and at least 18 years old
- Be a registered voter in the district
- Have one year of residency in the school district
- Be able to read and write
- Have no interest in any contract with, or claim against the Board
- Not hold office as mayor or member of the municipal government body
To get on the ballot:
- Submit a petition with 25 valid signatures by July 28, 2025
- Elections are held in November and are nonpartisan
📚 Key Terms & Concepts
Extraordinary Aid / Nonpublic Transportation Aid (-$850,000)
Who provides this?
The New Jersey Department of Education (NJDOE)
What is it?
- Extraordinary Aid reimburses school districts for extremely high special education costs (e.g., $40,000+/year per student).
- Nonpublic Transportation Aid reimburses the district for transporting students to private/parochial schools.
Why was it reduced?
- Based on the number of eligible students and expenses.
- Subject to availability and changes in state allocations.
SEMI (Special Education Medicaid Initiative) Revenue (-$250,000)
Who provides this?
The federal government via NJ Medicaid, administered through NJDOE.
What is it?
- Reimburses districts for health-related services provided to Medicaid-eligible special education students.
- Districts only keep 35% of the federal SEMI reimbursement; the other 65% goes to the state.
Why was it reduced?
West Orange may have had lower billing, fewer eligible students, or other unknown issues. Several other districts have noted similar SEMI revenue drops in 2025–26, suggesting a statewide trend rather than a district-specific issue.
Banked Cap / Adjustments (-$703,000)
What is it?
- Banked Cap is unused tax increase capacity from previous years.
- Districts can carry it forward for up to 3 years to exceed the 2% tax levy cap without voter approval.
Why was it reduced?
The district used $465,254 in 2025–26, exhausting prior-year taxing authority. No further banked cap will be available in 2026–27 unless unused taxing authority accrues again.
The district did not apply for cap waivers but may qualify in future years depending on enrollment and cost trends.
Budgeted Fund Balance (-$1.2 million)
What is it?
The district's leftover funds from previous years (a surplus) used to balance the upcoming year's budget.
Why was it reduced?
- Less surplus was available to apply this year.
- Based on the User-Friendly Budget, the remaining unassigned fund balance is expected to stay at or slightly above the 2% minimum threshold (~$4.1M) as required by state law.
What is "Adequacy" and the Local Fair Share?
- The state uses a formula to determine what each district "should" spend to provide a "thorough and efficient" education, called the adequacy budget.
- It also calculates what a district's local fair share is — how much the town is expected to raise through property taxes.
- If a district doesn't raise enough locally, its aid may decrease under the S2 formula.