New Jersey Files Petition To Take Over Lakewood Schools After Years of Financial Troubles
The state wants to seize control of the Lakewood Township School District. This comes after more than ten years of money problems and operational failures.

New Jersey filed an Order to Show Cause on Wednesday. The state wants to seize control of the Lakewood Township School District. This comes after more than ten years of money problems and operational failures. The state Department of Education said the action would suspend local control. It would strip the elected school board of most power if the State Board of Education approves.
"For more than a decade, the New Jersey Department of Education has been working with the Lakewood Township School District to address ongoing fiscal and operational concerns that impact students, staff, parents, and the entire Lakewood community," said state Department of Education Commissioner Kevin Dehme in a statement, per NJ.com. "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."
The action comes after a September ruling by the Appellate Division of the New Jersey Superior Court. Judges found that students "suffer from an ongoing constitutional deprivation." They pointed to a "consistent pattern of neglect and misfeasance" by school leaders despite repeated state intervention efforts over the years.
If approved, the takeover would be the first time the state has seized full control of a suburban school system. New Jersey has taken over districts in Jersey City, Paterson, Newark, and Camden amid concerns about mismanagement. Student outcomes were poor. Newark regained full local control in 2020 after 25 years under state oversight.
The township is a mostly Orthodox Jewish community. Nearly 50,000 school-aged children live there, but only about 6,000 attend public schools. About 84% attend private religious schools.
State law requires the system to provide busing to most private school students. It also funds private school tuition for many special education students. The district spends more than half its annual budget on transportation and special education costs. That's over $78 million, according to court records.
Officials said concerns about finances, leadership, and special education services date back to at least 2009. The system has borrowed about $220 million from the state since 2014. It still owes roughly $173 million. Last year, officials asked for a $19 million emergency loan from the state to help cover teacher salaries for the rest of the school year.
Local officials now have the chance to respond to the Order to Show Cause. The State Board of Education will decide whether to move ahead with full state intervention.




