With just days remaining before leaving office, the Murphy administration is moving to place the troubled Lakewood, NJ public school district under state control, a sweeping intervention that would remove authority from the elected local school board and place the system under a state-appointed Superintendent with broad governing powers, according to a report in the New Jersey Globe.
State officials point to long-standing financial instability as the driving force behind the action, citing persistent budget shortfalls, soaring transportation and special-education expenses, and a cycle of state financial assistance that the district has been unable to pay back. They argue that the district’s underlying financial structure has deteriorated to the point where the existing leadership framework can no longer function.
Lakewood’s political makeup contrasts sharply with the statewide picture. In the 2024 general election, Republican Jack Ciattarelli won roughly 90% of the vote in the township, carrying it by nearly 33,000 votes. That overwhelming local support, however, did little to affect Governor-elect Mikie Sherrill’s decisive fourteen-point victory across New Jersey.
The formal process is expected to begin today, when New Jersey Commissioner of Education Kevin Dehmer is anticipated to file an Order to Show Cause. With only six days remaining in Governor Phil Murphy’s term, the timing appears designed to spare Sherrill from having to initiate the takeover herself once she assumes office.
Lakewood’s educational landscape is unique within the state. More than 40,000 students attend over 180 private schools, the vast majority of them frum institutions, while the public school system serves approximately 5,000 students. No other district in New Jersey comes close to that imbalance, as the statewide average for private-school enrollment is about 14%.
The local Board of Education allocates more funding to transporting private-school students than it does to instruction within public school classrooms. Critics argue that this arrangement has left public school students—largely from communities of color—at a disadvantage, pointing to overcrowded classrooms and weaker academic performance as symptoms of a system misaligned with their needs.
For more than ten years, Lakewood’s district has posted annual deficits running into the millions. Each year, continued operation depends on repeated state “loan” bailouts, many of which officials acknowledge are unlikely ever to be repaid.
Opponents of the current structure describe the district as effectively insolvent, contending that there is no viable long-term solution under existing governance and that the financial model is destined to fail under the burden of legally mandated private-school transportation.
Compounding the problem, Lakewood places a significant number of special-education students in private programs, including many outside the district and at substantial expense. A state investigation conducted in 2014 flagged concerns over weak oversight of special-education contractors, questionable approval practices for private providers, and possible conflicts of interest. At that time, Governor Chris Christie opted against a state takeover.
Governor-elect Sherrill has previously expressed support for state oversight measures, including the appointment of a state monitor in Montclair, her hometown, where officials are dealing with severe fiscal challenges.
New Jersey has a history of state takeovers of school districts. Camden was placed under state control in 2013 during Christie’s administration, while Newark and Paterson underwent similar interventions in the 1990s, and Jersey City did so in 1989. In each case, restoring full local governance took more than a decade.
Should the Murphy administration’s effort succeed, Lakewood could be headed for a similarly extended period of state supervision.
{Matzav.com}