Orange County school leaders outline 3% districtwide cuts and warn of insurance shortfalls

Orange County Public Schools on April 28 laid out division-by-division reductions intended to meet a districtwide 3% savings target while warning that some funds and staffing decisions are still in flux.

Superintendent Dr. Vasquez told the board that the presentation would show ‘‘the 3% cuts that took place at the district level’’ but warned the counts may change with retirements and position reclassifications. Chief Financial Officer Doreen Cogolino summarized the broader fiscal landscape and said the 3% target equated to roughly $8.3 million, but the division totals shown in presentation slides amount to about $11.5 million in general-fund reductions because several divisions cut more than the minimum target.

The board heard detailed breakdowns from deputies and chiefs: the chief academic office reported $3.4 million in general-fund savings and elimination of 64 positions; the chief schools office eliminated 10 positions, yielding about $1.1 million in savings (split between $653,942 from general funds and $436,926 from grants); the exceptional student education office cut two positions and about $121,053; strategy and infrastructure reported about $2.2 million in general-fund reductions and eliminated 54 positions; operations eliminated 16 positions and reported about $2.8 million in reductions. Division leaders emphasized that some eliminated roles were vacant and that remaining staff would absorb duties to maintain core services.

Cogolino also walked the board through broader budget pressures. She said state budget uncertainty — the Legislature had not adopted a final FY2027 budget — complicates planning and that declining enrollment in traditional schools is reducing recurring revenue. She flagged several categorical funding differences between the House and Senate proposals and noted the district’s fiscal exposure from an ongoing Orange County property-appraiser litigation, which she said could reduce revenue by an estimated $6.5 million to $13 million annually until resolved.

The employee benefits trust was a prominent concern. Cogolino characterized the trust as ‘‘structurally unsound’’ and said continued reliance on large general-fund transfers is not sustainable. She told the board that claims exceed revenue (citing claims in the roughly $340 million range versus revenue near $230 million) and that the district will need a combination of plan design changes, higher employee premiums, and increased board contributions to restore solvency.

Board members pressed for more detail. ‘‘Do we have a total amount from all the departments?’’ Member Gallo asked; Cogolino replied the slides sum to roughly $11.5 million. Members asked which eliminated positions were vacant and which were staffed; presenters said they would provide a breakdown and stated that over half of eliminated positions were vacant. Board members also asked for a multi-year view of EdTech spending and emphasized that devices and EdTech programs are funded differently (devices from capital/lease funds; EdTech programs from operating funds).

Transportation and services for students covered by the McKinney-Vento homeless-student program were discussed at length. Staff described use of third-party contractors when district drivers are unavailable for ESE or McKinney-Vento required runs and said the district is exploring smaller non-CDL vehicles to reduce costs and pilot alternatives.

Chair Jacobs closed the budget segment by asking staff to return follow-up information, including a single reconciled total for cuts and more granular lists of eliminated positions and program reductions. No formal action or vote was taken at the work session.

Ending: The board will receive follow-up documentation by email and continue budget-priorities deliberations; staff signaled additional information on position vacancies, program reductions, and proposed insurance plan design changes will be provided before future meetings.