The Murphy administration plans to seek a state takeover of Lakewood's financially distressed public school district by filing an Order to Show Cause, which would empower a state-appointed monitor to assume sweeping authority and strip the locally elected board of control.

New Jersey has filed an Order to Show Cause to begin a state takeover of Lakewood Township School District due to long-standing academic, financial, and operational problems.

The administration is pursuing a takeover that could remove the local elected board and install a state-appointed Superintendent with broad powers.

Critics say the district’s governance prioritizes private-school transportation over classroom instruction, contributing to the public school enrollment and funding gaps.

Finances have been strained for years, including about $220 million borrowed from the state since 2014, with roughly $173 million still outstanding, and a $19 million emergency loan was sought last year to cover teacher salaries.

Governor-elect Sherrill has shown support for state monitors in fiscally distressed districts, signaling potential broader use of this tool.

If approved, the takeover would strip local control and could shield the incoming Sherrill administration from needing to make the decision directly.

The district spends a substantial portion of its budget—over $78 million annually—on transportation and special education due to mandatory busing for private school students and funding for private school tuition for some students.

A 2014 state investigation flagged lax oversight of special-education contractors and potential conflicts of interest; then-Governor Christie chose limited intervention rather than a full takeover.

Lakewood’s fiscal strain is tied to its unique local context: more than 40,000 students attend private schools in the township, while only about 5,000 attend public schools, creating funding and resource imbalances.

Lakewood is one of New Jersey’s fastest-growing municipalities, with roughly 50,000 school-age children—about 6,000 in public schools and around 84% in private religious schools.

State Education Commissioner Kevin Dehne says intervention is necessary to provide oversight and course correction for Lakewood’s students, staff, and community.