New Jersey moves to seize control of Lakewood schools as $100M deficit explodes

🔴 New Jersey is moving toward a rare takeover of a non-urban school district.

🔴 Courtesy busing costs for private school students have driven massive deficits.

🔴 Local officials say they blame the school funding formula, not mismanagement.

LAKEWOOD — This unique Ocean County school district is the latest to face the "nuclear" option of a state takeover amid a red budget and worsening finances.

A takeover means the state Department of Education will appoint a new superintendent to replace Laura Winters, who has hinted she will fight the effort. The state will also have control of the school board and the district's budget and finances.

Lakewood joins the ranks of four other districts — Newark, Paterson, Jersey City and Camden — that have been superseded by the state Education Department. And uniquely, Lakewood is the first non-urban school district to face a state takeover.

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Education Department Commissioner Kevin Dehmer said the state has tried to help the district with its finances for over a decade.

"For all of those impacted, most especially the students of Lakewood, we are obligated to intervene in this situation and provide the district with the necessary oversight to course correct," Dehmer said.

Lakewood’s unusual school population strains district finances

The Lakewood Township School District is one of the most unique school districts in the country.

In the 2024-2025 school year, Lakewood's eight public schools supported around 4,600 students.

By comparison, more than 50,000 children in Lakewood attend private schools, which are overwhelmingly Orthodox Jewish; the township has over 100 private schools, according to the National Center for Education Statistics.

Courtesy busing costs for private schools fuel massive deficits

That puts a strain on district finances; state law requires districts to provide transportation, known as courtesy busing, to many public and private school students.

The New Jersey Globe reports that in 2023, Lakewood provided courtesy busing to 11,400 students, and school funds cover those costs. The Asbury Park Press reports that in the 2024-2025 school year, the district spent $33 million on busing for private school students.

Officials blame state funding formula, not mismanagement

In response to the state takeover, a joint statement was issued by several local officials, including Sen. Robert Singer, R-Ocean; Assemblyman Avi Schnall, D-Ocean; Democratic Lakewood Mayor Raymond Coles; and the Lakewood Township Committee.

They said that more than a dozen state-appointed fiscal monitors have analyzed the district's finances, and each one found that Lakewood has a revenue problem, not a mismanagement problem.

The district has an annual deficit of $100 million because the state's school funding formula doesn't account for its unique situation, the statement said.

"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," the officials said.

But attorney Paul Tractenberg, who has represented Lakewood schools pro bono, said in an email to NJ Spotlight News that he didn't understand why the state took so long to choose the "nuclear" option. He also said it's uncertain whether the takeover will actually help the district's students.

“Why would anyone expect that a generic statewide school funding formula would work for a unique district? If the funding is inadequate under state control, there’s only one party to blame, and it won’t be the local school district," said Tractenberg.

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