ORLANDO, Fla. – Orange County Public Schools leaders on Tuesday reflected on a year marked by school closures, staffing reductions and financial challenges, while warning that additional budget decisions could be necessary as student enrollment continues to decline.
Enrollment decline drives budget concerns
During the district’s annual State of the Schools address, Superintendent Maria Vazquez described the 2025-26 school year as one of significant transition for Florida’s fourth-largest school district in the state and 8th in the nation.
District officials said Orange County Public Schools lost approximately $23 million this fiscal year due to declining enrollment. The district projects enrollment will drop by another 3,000 students next school year, creating an estimated $27 million budget shortfall.
“It has been a challenging school year,” Vazquez mentioned, pointing to declining birth rates, changing housing trends and increased competition from school choice options as factors contributing to enrollment losses.
The financial pressures led the district to close seven schools and eliminate hundreds of positions during the past year.
“We support school choice, but here is what we are asking for: equal rules and equal funding,” Vazquez said during the address.
District pushes for additional funding
When it comes to the budget next year, district leaders said the additional dollars are not keeping pace with inflation and rising operational costs.
“The dollars we are scheduled to receive are not keeping up with inflation,” Vazquez said.
School officials are urging voters to renew the district’s one-mill property tax referendum when it appears on the November ballot. District leaders said the referendum accounts for roughly 10% of the district’s budget and helps fund about 2,000 teaching positions.
“It’s 10% of our budget. It’s 2,000 teaching positions. It’s huge,” Teresa Jacobs, Board Chair said.
The district is also closely monitoring proposed changes to Florida’s property tax structure and is advocating for schools to remain exempt from any measures that could reduce local education funding.
“If our tax base cuts substantially, it will have massive long-term impacts on our schools and teachers,” Vazquez said.
Without additional funding, district leaders warned they may need to make further adjustments, including changes to employee benefits trust that include health care and additional consolidations or budget reductions.
“We are going to have to make adjustments to the plan and to what employees pay. This will be hard,” Vazquez said.
Looking ahead
Despite the challenges, school leaders said they are working on initiatives designed to attract families back to the district, including new educational programs and school models aimed at meeting changing student needs.
The district is also preparing for a leadership transition as it works to address ongoing enrollment and budget concerns heading into the next school year.
[WATCH: Orange County Public Schools pitch new programs to meet changing student needs]
Vazquez said the district is developing new educational models designed to appeal to families seeking alternatives to traditional public schools. Jacobs also mentions some of the things the district has planned.
“We are developing a new model for our schools — micro schools, a flexible concept built around digital arts to meet families where they are,” Jacobs said.
The district is also opening a new gifted high school academy at Edgewater High School, welcoming some students from outside Orange County and expanding programming for homeschool families.
Officials said those efforts are already making an impact.
“Through proactive outreach, we have already brought back 1,900 students,” Vazquez said.
Despite many challenges, district leaders pointed to academic achievements, including maintaining the district’s “A” rating and improving graduation outcomes.
“We are doing phenomenal against all odds,” Vazquez said.
Leadership transition ahead
The State of the Schools address also comes as School Board Chair Teresa Jacobs prepares to conclude her tenure on the board.
Asked about the current state of the district, Jacobs expressed both pride and concern.
“I’m simultaneously worried about the future, but where we stand right now, I’m so proud,” Jacobs said.
Growth areas bring new costs
While enrollment is declining in some areas, growth continues in parts of Orange County, particularly Lake Nona and Horizon West.
District officials said two new elementary schools are under construction to accommodate increasing student populations in those communities.
However, leaders noted that construction costs have risen sharply in recent years.
“The price to build an elementary school has doubled,” Jacobs said.
Future plans
With enrollment and funding concerns continuing to shape district decisions, school leaders said efforts to attract and retain students will remain a top priority.
The district’s next chapter will unfold under new leadership as officials continue working to address financial challenges while planning for growth in rapidly developing areas of Orange County.