$271.5 million budget holds taxes flat by cutting jobs

What happened

On March 26, 2026 the board adopted a 2026-2027 budget of $271,461,734, up from the $263.7 million it spent the year before, while leaving the local school tax levy at $39,291,159 for a third straight year. The budget presentation lists $16.4 million of cost increases the district says it cannot control, led by $6.4 million more for health benefits, $3.0 million more for special education and $3.0 million more for charter school tuition, and $16.0 million of savings to cover them, led by $11.0 million from eliminating 11 administrative positions and $2,480,112 from outsourcing custodial work.

Why it matters to families

East Orange raises only about one dollar in seven of its own money; $191.5 million of the budget is state aid. Holding the tax bill flat for a third year while costs rise $16.4 million means the gap is closed by cutting staff rather than by new revenue, and the budget shows classroom teaching salaries falling about 6 percent and facilities, maintenance and security spending falling 24.6 percent.

The evidence

The March 26, 2026 approved minutes record adoption of the 2026-2027 budget with total appropriations of $271,461,734, a local tax levy of $39,291,159, state revenue of $191,532,715 and use of $2,000,000 of budgeted fund balance. The budget presentation given at the same hearing itemises the $16.4 million of increases and the $16.0 million of savings initiatives and shows the levy unchanged since 2024-2025.

The source