Scathing state report rips Lakewood schools' backroom decision-making

LAKEWOOD – A scathing review from the state Department of Education claims 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.”

“Staff reported not feeling respected and fear retaliation from the administration if they speak out in a critical way,” the report from former State Education Commissioner Kimberly Markus said, in part. “Instances of unresponsiveness or unclear communication from the district contribute to a perception of inadequate support.”

The report, portions of which were obtained by the Asbury Park Press, was released March 1 to both parties in the Alcantara case, a 10-year-old lawsuit filed on behalf of parents against the Department of Education seeking to improve state aid to the district.

More: Lakewood Schools' auditor says poor state aid makes finances 'tricky'

Markus was appointed last year to conduct the district review by then-Education Commissioner Angelica Allen-McMillan after Allen-McMillan received a court order to formulate a plan to improve state aid to Lakewood.

Allen-McMillan, who has since left the post, announced that Markus’ review would help her office create a new state aid plan, which is due by April 1.

Among the report’s findings:

• Board meeting practices do not align with practices of comparable districts or follow recommendations from the New Jersey School Boards Association.

• Board meetings lacked policy discussions and use there are “outdated and/or ill-informed” policies.

• Board involvement with budget development was minimal with “no observed board meetings that discussed financial issues or presented detailed information regarding budgets.”

• There appears to be “no urgency or accountability for the district’s financial situation by leadership.”

The financial situation relates to the district’s ongoing annual deficits and rising state loan debt, which recently reached more than $173 million with a $50 million loan approved last fall.

Lakewood Schools also suffer from a lack of state aid that prompted the lawsuit and was reinforced by a three-judge appeals court last year that demanded a new state aid plan.

Markus’ report took issue with Board Attorney Michael Inzelbuch, who often directs the board meetings and serves as district spokesman.

“The Lakewood Board of Education attorney plays a far more active role than the typical board attorney in district business,” Markus wrote. “The Board Attorney stated that his role is not only board attorney, but he also provides the district a service like a communications director. Lakewood's legal expenses per pupil are significantly higher than comparison districts.”

Inzelbuch’s salary, which averages more than $800,000, has come under scrutiny in the past, including from Gov. Phil Murphy, who called it “eye-popping” in 2021.

Inzelbuch and Superintendent Laura Winters did not respond to requests for comment.

More: Will education commissioner resignation delay new Lakewood schools funding plan?

Markus’ report later cited communication gaps in central office activities while noting district management was not based on a strategic plan.

“Without a strategic plan, the district relies on a series of annual goals that lack accountability as they do not have metrics that can determine how successful the district is in meeting their goals,” she stated.

Markus added that “large-scale district planning appears to occur behind closed doors.”

One example she cited was when the district changed the configuration of several elementary and middle schools this year with little input or proper explanation.

“The grade configuration consisted of moving hundreds of students and staff with little notice or explanation as to why the decision was made,” the report said. “There was no discussion at board meetings or opportunity to provide public input.”

On the staffing front, Markus wrote that the district struggles to fill all vacancies each year, citing a lack of competitive salaries with neighboring districts.

“Ultimately, this document is designed to catalyze positive change,” the report said. “Fostering an environment where every student can thrive and achieve their fullest potential, supported by robust governance, dynamic curriculum, sound financial management, and reliable transportation.”

The Alcantara lawsuit was initially filed in 2014 by former Lakewood High School teacher and attorney Arthur Lang and Paul Tractenberg, founder of the Rutgers University Education Law Center.

More: Judges set deadline for state to provide Lakewood with more school aid

The complaint claims that Lakewood was not properly funded by the state because the statewide school funding formula does not take into account the district’s costs associated with transporting nearly 50,000 nonpublic school students and focuses only on the nearly 6,000 public school students.

That suit led to an appeals court ruling in March 2023 that found Lakewood public schools do not receive adequate state funding to meet their needs.

Lang criticized Markus’ report, saying it makes no mention of the impact of inadequate state aid, instead focusing on the district’s management style.

“All they did was say they are not running the district correctly, the court said that they had to address funding,” Lang said. “They took the position that everything has to be blamed on the district.”

More recently, an internal review by State Auditor David Kaschak determined that the Lakewood School District suffered from “severe fiscal distress” and would benefit from additional aid. He also suggested the state create a new funding category for the district.

The appeals court last fall set an April 1 deadline for a new funding plan from the education commissioner, which remains in place even though Allen-McMillan left her post.

Acting Education Commissioner Kevin Dehmer took over for Allen-McMillan in February and has declined comment on the Alcantara case.

Joe Strupp is an award-winning journalist with 30 years’ experience who covers education and several local communities for APP.com and the Asbury Park Press. He is also the author of three 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 at @joestrupp

This article originally appeared on Asbury Park Press: Lakewood NJ district report details 'culture of low expectations'