The basics:
- NJDOE files Order to Show Cause, first step toward full state intervention
- Move follows appellate ruling citing constitutional violations
- State superintendent to assume control for up to three years
- Action comes days before Gov. Murphy leaves office
As the Murphy administration nears its conclusion, the New Jersey Department of Education has initiated a state takeover of Lakewood Township School District.
NJDOE filed an Order to Show Cause Jan. 14, the first formal step toward full state intervention in the district. The move follows years of persistent deficiencies and longstanding fiscal issues. According to the state, that history has hindered students’ access to a thorough and efficient education.
A September 2025 appellate court ruling in Alcantara v. Allen-McMillan (Alcantara II) found that Lakewood students “suffer from an ongoing constitutional deprivation.” The ruling pointed to “a consistent pattern of neglect and misfeasance” by district leaders across governance, finance, curriculum, transportation and special education.
Notably, the takeover comes just days before Murphy’s second and final term ends, when Gov.-elect Mikie Sherrill gets sworn in Jan. 20.
NJDOE Commissioner Kevin Dehmer stressed that, despite years of state assistance – including tens of millions in aid, logistical and administrative support as well as the placement of state monitors – significant deficiencies remain, necessitating intervention.
‘Obligated to intervene’
Under the state takeover plan, a newly appointed state district superintendent will assume full authority over district operations for an initial term of up to three years.
This superintendent will have the power to restructure the district’s leadership. That includes abolishing the chief school administrator role, reorganizing executive staff, and terminating contracts for auditors and attorneys.
Read more
- The Full State Intervention plan can be found here.
- The Order to Show Cause is available here.
In addition, NJDOE will appoint highly skilled professionals. The HSPs will oversee governance, legal compliance, special education, transportation, fiscal management and services for nonpublic school students. These professionals will directly monitor district operations, guide improvement plans, and ensure compliance with state and federal laws. The state and the district will share costs.
Lakewood Township‘s Board of Education will remain in place as an advisory body. However, the commissioner may appoint up to three additional members to strengthen oversight. The Lakewood Township School District will also be required to develop an improvement plan in cooperation with the Department. The agenda will outline steps to address deficiencies within six months of intervention.
“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 Dehmer. “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.”
Revenue vs. oversight
Local leaders in Lakewood issued a joint statement acknowledging the unique challenges the district faces. Participants include Sen. Bob Singer, R-30th District; Assemblyman Avi Schnall, D-30th District; Mayor Raymond Coles, a Democrat; and the Township Committee.
They noted that Lakewood is home to a large private school population of more than 50,000 children. Meanwhile, roughly 5,000 public school students – nearly 90% of whom are English Language Learners – attend the district.
The officials emphasized the structural deficit of more than $100 million annually is a result of funding formulas that do not reflect Lakewood’s distinctive demographics and obligations, rather than mismanagement. They highlighted the State’s long history of loans and fiscal monitoring, all of which concluded that the core issue is revenue, not oversight.
Our priority has always been — and remains — the students.
– Joint statement from Lakewood leaders
“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 statement said. “We look forward to working collaboratively with the Department of Education and with incoming Gov. Mikie Sherrill to resolve this issue once and for all.
“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. We welcome this opportunity.”
Please stay with NJBIZ for the very latest on this developing story.
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