PHOTO VIA ORANGE COUNTY PUBLIC SCHOOLS FACEBOOK PAGE
Orange County Public Schools approved a nearly $7.9 billion budget for the 2026-27 fiscal year last week, which is an increase of about $500 million from last year, even as the district grapples with a steep enrollment decline and plans for further cuts. The budget passed after a public hearing where teachers, community members and board members raised concerns about teacher pay, class sizes, insurance costs, vouchers and how the district is managing its finances.
The approval comes after OCPS reported losing nearly 8,000 students during its 10-day enrollment count this fall, more than the district had anticipated. Superintendent Maria Vazquez said the steepest declines came among VPK and elementary school students. The district also confirmed last week it would cut an additional $8.5 million from its budget, on top of more than 240 positions eliminated over the past two years, and has since put a hiring freeze in place for some positions while it works through its annual staffing “leveling” process. Some of those positions include roles in language services, mental health support, social work, special education, and maintenance.
The Orange County Classroom Teachers Association has launched a petition demanding that OCPS reevaluate those cuts, focus on reducing administrative positions, evaluate the sale of its downtown offices, and more. According to the Association, the listed salaries of 22 principal leaders and nine cabinet-level administrators is estimated at $4.9 million, which is the equivalent of the starting salaries of more than 97 teachers.
Funding for elementary schools dropped from about $738.3 million to $696.2 million, a decrease of nearly $42 million, while middle school funding fell by about $16 million. High school funding increased by about $7 million. OCPS now has roughly 170,000 students enrolled across the district, including more than 66,000 in elementary schools and VPK, about 35,000 in middle school and roughly 58,000 in high school.
The district’s Capital Projects Fund saw the largest single increase, growing by $230.5 million to nearly $4 billion, with more than half of that money going toward renovating schools built before 2003. Amid declining enrollment, OCPS is pausing plans to open new schools for the next five years, with only two new elementary schools currently planned. Board member Alicia Farrant called opening just two schools in ten years “wild.”
Health insurance costs also emerged as a major point of tension. The district’s Internal Service Fund, which covers employee health coverage, grew by $35.2 million to about $448.3 million. OCPS says it is spending roughly $20 million a month without having finalized changes to its health insurance plan, and Vazquez said the district is running a deficit on insurance despite having “evaluated different plans” and “looked at different structures.”
To manage cash flow, OCPS also plans to authorize up to $250 million in short-term borrowing through Tax Anticipation Notes, a fiscal tool the district hasn’t used since the 2008 recession, to bridge the gap before most property tax revenue arrives. Some board members, including Maria Salamanca, said the move made them uneasy, comparing it to relying on a credit line for everyday expenses.
Orange County voters will decide in November whether to renew a special property tax expected to generate about $255.2 million for the district next year, funding officials say, is tied almost entirely to teacher pay and academic, arts and athletics programming. Board member Angie Gallo said the district is “way too reliant” on that revenue source, and Vazquez said losing it would be “catastrophic.”
Clinton McCracken, president of the Orange County Classroom Teachers Association, told the board that teachers are feeling the direct impact of the district’s financial decisions and urged officials to look for savings farther from the classroom. Anatomy and physiology teacher Asma Almani described teaching a class of 39 students and said she relies on donations to cover basic classroom needs.
