Singer, Schnall say state takeover could fix flaws in school funding formula

A group of Lakewood elected officials said a state takeover of their local public schools could be a “path to a permanent fix” to the district’s $100 million deficit.

But a statement from State Sen. Robert Singer (R-Lakewood), Assemblyman Avi Schnall (D-Lakewood), Mayor Ray Coles, and the township committee said the problem is not rooted in mismanagement, but rather in a school funding formula that was not designed to accommodate Lakewood’s unusual structure and demographics as an Orthodox Jewish-majority community.

“Lakewood is one of the most unique school districts not only in New Jersey, but in the entire country,” they said, noting that more than 50,000 Lakewood children attend private schools, while approximately 5,000 attend public schools — nearly 90% of whom are English Language Learners (ESL).  “No other district in the state comes close to this demographic reality, and New Jersey’s school funding formula was never designed to account for such a system.”

The officials said the state has recognized a “mismatch” in Lakewood’s “unique circumstances and statutory obligations” by providing loans to help fill a budget gap to keep the local schools solvent.

“More than a dozen state-appointed fiscal monitors have reviewed Lakewood’s finances in depth, each charged with identifying inefficiencies and opportunities for cost savings,” Singer, Schnall, Coles and the others said. “Without exception, every one of those monitors reached the same conclusion: Lakewood’s challenge is not a management issue — it is a revenue issue.”

The group said that they may welcome the state’s involvement in appointing a Superintendent and removing local control from the elected school board.

“If the State of New Jersey believes that assuming a more direct role in Lakewood’s school district will finally lead to a sustainable, long-term solution to this structural problem, we welcome that effort,” they said.  “We look forward to working collaboratively with the Department of Education and with incoming Governor Mikie Sherrill to resolve this issue once and for all.

An Order to Show Cause is expected to be filed with the State Board of Education as early as today as the first step toward a state takeover.

“Our priority has always been — and remains — the students. The students who rely on the Lakewood School District deserve stability, resources, and an education system that is properly funded and designed for their needs,” Singer, Schnall, Coles, and the other township committee members said.  “We welcome this opportunity.”