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 is facing a significant budget gap for the 2025–2026 school year. Several categories of revenue have decreased, while mandated costs (like health benefits and out-of-district special education tuition) have increased substantially. The result is a shortfall of approximately $8 million, even after raising the local tax levy by the full 2.3% allowed under state law.
❓ 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?
Not fully known where this cut is coming from. It's possible that fewer Medicaid-eligible students or services billed or gaps in documentation could have contributed to the reduction.
❓ 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 $465K in 2025–26 but had less remaining than in prior years.
The BOE acknowledged they will exhaust their banked cap (page 9) in 2025–26.
❓ 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.
- Remaining fund balance must comply with NJ's 2% reserve rule, likely leaving just ~$4M in reserves.
📖 Civic Engagement FAQ
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
Who makes the decisions on how the school budget is used?
- 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