LAKEWOOD – In its strongest objection yet to the New Jersey Department of Education’s oversight, the Lakewood school board has authorized two lawsuits against the state.
Those suits are for alleged “false findings” in a 2024 state review and for failing to provide additional funds for special education services.
In other action, the board reappointed former state monitor Robert Finger. He had been blocked from returning just two months ago, but the board hired him to a new consultant post that will pay him $110 per hour, up to $20,000, of taxpayer money.
“Mr. Finger … is needed to provide ongoing support to the District, Board of Education and its Counsel,” the board stated in a resolution it unanimously approved to appoint Finger. “His expert advice will be critical during the preparation of the 2025-26 budget and loan request, so as to ensure a thorough and efficient budget has been developed.”
Current state monitor Louise Davis, who had helped block Finger’s reappointment to a similar post in October, did not immediately move to do so again, saying she’d take the board action “under advisement” for possible future reversal.
More: Lakewood Schools state loan delayed amid state monitor shuffle
Board Administrator Kevin Campbell later said Finger’s appointment was being reviewed by the state but would take effect unless otherwise directed by the state or Davis.
The actions were among a slew of resolutions approved at the annual board reorganization meeting where board members Moshe Bender and Heriberto Rodriquez were sworn into new terms. Bender was also unanimously re-elected board president.
Among the key votes was approval of a resolution authorizing the board attorney to “pursue legal action” against the Department of Education and several state officials on two fronts.
State critical of Lakewood Schools operation
First, the board targeted former Education Commissioner Kimberly Markus, who authored a state review of the district in March 2024 that board members claim included “alleged inaccuracies and misinformation.”
The resolution claims that the report “harmed the district’s reputation, operation, and ability to serve its students and staff effectively.”
Markus’ review claimed that Lakewood Schools suffer from “a culture of low expectations” and “high levels of distrust,” and that important decisions are often made “behind closed doors.”
The report was released last March to both parties in the Alcantara case, a 10-year-old lawsuit filed on behalf of Lakewood parents against the Department of Education seeking to improve state aid to the district.
Markus had been appointed by the state to review the district and offer findings to the Education Commissioner’s Office as it assessed the lawsuit’s claims of inadequate state aid.
More: Lakewood Schools state monitor suddenly resigns; 2nd monitor in months to quit
In April 2024, the Department of Education issued a follow-up report, based in part on Markus’ findings, that said Lakewood Schools did not need more state funding and, instead, should improve management and fiscal responsibility.
“The pervasive errors and questionable practices in Lakewood’s record-keeping result in the inefficient use of funds,” the report, signed by Assistant Education Commissioner Cary Booker, said.
The latest board resolution states that the board would seek “litigation to protect the district’s interests and reputation” but offered no more details on what exactly a lawsuit would seek in damages or recovery.
Another similar resolution authorized the general counsel to pursue potential litigation against the state for failing to provide funding for improved special education services.
The school board reappointment of Finger, who had served from December 2023 until his abrupt resignation in August 2024, is the latest move in a game of musical chairs for its state monitors, who are appointed by the Department of Education and paid more than $200,000 per year by the district.
Since July, the district has had three different state monitors and was due to see a fourth sometime next month, according to the Department of Education.
But Davis on Wednesday said there are no plans for another state monitor to be appointed.
State loan request still up in the air
Meanwhile, Lakewood School officials are waiting to learn if they will receive a $104 million state loan that was originally requested in April. State officials said an answer is likely to come after a state audit in February.
But several board members on Wednesday said the wait had been too long.
“We need the state to clarify for us if we are allowed to use these funds,” said Board Member Moshe Raitzik. “Otherwise we will be in severe deficit and we will not be able to cover our payrolls. That would be a severe problem. We are literally hanging at the precipice of a cliff.”
Board members are also concerned with Davis serving in the monitor post, with at least two members who requested anonymity saying she was overstepping her bounds.
“Is the monitor allowed to create the budget, legally?” Rodriguez asked during the meeting. Davis said she was not sure but that she was advised she “would help with the budget.”
More: Lakewood school board battling state over monitor rehire
State monitors are appointed by the Department of Education and required under state policy for any district that borrows state education funds. They must remain in until the money is paid back.
The current monitor situation began in July when former State Monitor Kelvin Smith was appointed by the Department of Education. At the time of Smith’s appointment, Finger, who had been serving as state monitor since December 2023, was still under contract through an agreement set to end in December 2024.
Finger resigned at the end of August, has offered no public reason and declined to comment on his status. A public records request from the Asbury Park Press for his resignation letter was denied.
In October, the state appointed Davis, whose contract runs through October 2025.
In November, Smith resigned effective at the end of 2024 even though his contract ran through August 2025. He said only that he wanted to “take a break from work and enjoy my retirement for a while.”
The board responded days later by seeking to reappoint Finger to a new $40,000 consultant position.
But Smith and Davis blocked that reappointment, with Smith saying at the time that “the Department of Education has somewhat of a problem with the amount and the individual who is going to be involved with this.” Smith did not elaborate on the details at the time or when contacted later.
The pending $104 million state loan, which would bring the district’s state debt to $277 million, was first requested in April when the board approved the current 2024-2025 school year budget of $309 million. The budget includes the $104 million loan as part of its proposed revenue.
Joe Strupp is an award-winning journalist with 35 years’ experience who covers Lakewood and several local communities for APP.com and the Asbury Park Press. He is also the author of four books, including Killing Journalism on the state of the news media, and an adjunct media professor at Rutgers University and Fairleigh Dickinson University. Reach him at jstrupp@gannettnj.com and at 732-413-3840. Follow him on Twitter and TruthSocial at @joestrupp
This article originally appeared on Asbury Park Press: Lakewood school board plans to sue New Jersey, hires banned consultant