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West Orange Schools Face $15M Budget Gap, Potential Layoffs and Tax Increase Proposed

West Orange

By: Richard L. Smith 

 

A NJ school district could be forced to lay off dozens of staff members and raise taxes as officials work to close a growing budget shortfall in West Orange.

The West Orange Public Schools is projecting a deficit between $14 million and $15 million heading into the 2026–2027 school year, according to information presented by district officials in late March.

 

To address the gap, the district has proposed eliminating at least 70 full-time positions. 

 

The plan also includes consolidating courses, increasing class sizes, and restructuring parts of the middle school schedule as administrators attempt to reduce costs while maintaining operations.

 

District leadership indicated that cost-saving efforts are already underway, including academic restructuring and staffing adjustments. 

 

However, officials say those measures alone will not be enough to fully balance the budget.
 

The proposal also calls for a 2.5% tax increase, which would raise the average annual property tax bill by approximately $294 for homeowners, based on an assessed property value of $614,976.

 

School officials point to rising expenses as a major driver of the deficit, particularly health benefits, which are expected to increase by nearly 18%. 

 

Administrators noted that the district has been dealing with similar financial pressures for several years, and even with the proposed reductions, the budget remains unbalanced.

 

The situation in West Orange reflects a broader trend across New Jersey, where multiple districts are facing difficult financial decisions, including layoffs, tax hikes, and potential school closures. 

 

Some local leaders have also raised concerns about the state’s school funding formula as a contributing factor.

 

The district is expected to continue reviewing its options as it works toward adopting a final budget.