On January 14, 2026, in the last days of the Murphy administration, New Jersey's education commissioner filed for full state intervention in the Lakewood school district. Commissioner Kevin Dehmer's filing set up the biggest fight over a frum town's public schools in the country.
The books
According to The Bond Buyer, at the end of fiscal 2025 the district owed $214.1 million in state aid advance loans. It collected $116 million in local taxes against a $304 million budget in 2024-25, and had $21.44 million in bonds outstanding.
It serves about 4,800 public school students. It must also bus and provide state-mandated services to roughly 50,000 private school students, almost all in yeshivas.
The case
On June 25, the district asked Administrative Law Judge Susan Scarola to throw the case out, The Lakewood Scoop reported. Board attorney Joshua Forsman argued the state hasn't met the legal test for a takeover. She reserved decision. Four months later we have found no ruling. Board president Moshe Bender has said the board doesn't believe a full takeover is warranted. Whether the state keeps pressing belongs to Gov. Mikie Sherrill's commissioner, Lily Laux, who has not said publicly.
On August 6, Assistant Commissioner Katrina McCombs upheld the judge's refusal to let Paul Tractenberg and others intervene. They wanted to argue that the state's funding formula, not local management, caused the deficit. That argument is now out of the case.
The question nobody has answered
Who pays to bus and serve Lakewood's yeshiva children: the township, the district or the state? Every busing fight this fall traces back to it.
How we reported this: based on The Lakewood Scoop, The Bond Buyer, News 12, NJ Spotlight and the commissioner's August 6 decision (OAL Docket EDU 04053-26). We will ask the Department of Education whether a ruling has issued. Tips: [email protected].