Lakewood School District Opposes State Takeover Amid Controversy

The Lakewood Township School District in New Jersey is mounting a strong defense against a proposed state takeover, arguing that the intervention is unjustified and not in the best interest of the community. This announcement follows an official declaration from outgoing state Education Commissioner Kevin Dehmer, who stated earlier this month that the state would begin the takeover process due to longstanding financial and operational challenges within the district.

According to state officials, the district’s issues have led to inadequate educational opportunities for students. In response, the Lakewood Board of Education issued a statement asserting its commitment to “defend the integrity” of the district, claiming that it is not mismanaged. Instead, the board attributed its difficulties to a “failed state funding formula,” which they argue does not adequately account for the district’s unique demographics and enrollment realities.

Background and Implications of the Takeover

If the takeover proceeds, Lakewood would become the first suburban district in New Jersey to experience full state intervention, a move that has previously occurred in urban districts such as Jersey City, Paterson, Newark, and Camden. The district, which is home to a predominantly Orthodox Jewish community and nearly 50,000 school-age children, has seen less than 5,000 of these students attend public schools, with approximately 90% enrolled in private religious institutions.

State law mandates that Lakewood’s school district provide transportation for students attending nonpublic schools if they live more than two miles from their elementary or middle schools, or 2.5 miles from their high schools. The financial burden of providing this transportation, coupled with funding for private school tuition for numerous special education students, has severely impacted the district’s budget. Last year, Lakewood allocated over $78 million—more than half of its annual budget—toward transportation and special education costs, while similar expenditures in nearby districts represented only 4% to 7% of their budgets.

In September, a state appellate court ruled that Lakewood’s public school students are experiencing an ongoing constitutional deprivation. The court highlighted a “consistent pattern of neglect and misfeasance” by various elected and appointed leaders within the district, particularly regarding governance, finance, and special education.

Next Steps in the State Intervention Process

The New Jersey Department of Education has initiated the formal process for a state takeover by submitting an Order to Show Cause, which compels the Lakewood school board to either accept the takeover or justify why the intervention should not proceed. The state Board of Education will ultimately decide whether to assume control of the district.

State Senate Education Committee Chairman Vin Gopal expressed support for the takeover, citing concerns regarding the compensation of former school board attorney Michael Inzelbuch, who reportedly received more than $6 million from the district over the last seven years. Gopal stated, “It’s very well documented that they had a former school board attorney that was making a lot of money there. I think it just opens a lot of doors to a lot of questions.”

Although the initial steps for the takeover were initiated under former Governor Phil Murphy, it will now be the responsibility of newly elected Governor Mikie Sherrill to continue the process. If approved, the new education commissioner—expected to be Lily Laux, Sherrill’s nominee—could appoint a new superintendent and leadership team for the district. Under a state takeover, the current school board would lose its decision-making authority and transition to an advisory role.

The outcome of this situation holds significant implications for the future of education within Lakewood, as the community grapples with the state’s intervention and its potential impact on local governance and educational quality.