Declining enrollment deepens financial challenges for Orange County schools

Published June 16, 2026 10:41 PM EDT

Orange County Public Schools is facing growing financial pressure as declining enrollment and rising operating costs strain the district's budget, school officials said.

The district lost more than 5,600 students during the past fiscal year, resulting in a reduction of more than $23 million in state funding. 

Why the enrollment decline?

Local perspective:

School leaders attributed the enrollment decline to lower birth rates, housing challenges, immigration policy changes and the expansion of Florida's school voucher program.

As a result, seven schools are scheduled to close before the upcoming academic year.

CLICK TO DOWNLOAD THE FOX LOCAL APP

District officials said rising health care expenses pose one of the most significant financial challenges. As a self-insured employer, Orange County Public Schools estimates it would need an additional $145 million next school year to maintain current health care coverage levels.

Officials also cited increasing costs for utilities, insurance, transportation, technology and classroom supplies, while revenue growth has failed to keep pace.

SIGN-UP FOR FOX 35'S BREAKING NEWS, DAILY NEWS NEWSLETTERS

Without additional funding, district leaders warned that employee benefits, teacher raises and student programs could face reductions.

What's next:

School officials are also urging voters to renew a one-mill property tax referendum on the November ballot. The measure, which has been in place for 15 years, supports approximately 2,000 teaching positions and helps fund employee raises, according to the district.

District leaders said the referendum will play a key role in maintaining educational programs and staffing levels as enrollment and funding challenges continue.

The Source: This story was written based on information shared by Orange County Public Schools.

Orange County SchoolsOrange County NewsEducation