Lakewood Public Schools District, in perennial fiscal distress, just got mixed news from the Murphy Administration: instead of receiving a “loan” for $93,489,390 to cover its budget hole, it will get $50 million, although Acting Education Commissioner Angelica Allen-McMillan said the district might receive more cash later in the year.

That’s according to Asbury Park Press, which notes the smaller-than-expected check “puts Lakewood into an even deeper state debt at a time when the district is facing rising costs and has been battling the state for more aid.”

The $93.5 million presumed loan is baked into the district’s 2023-2024 budget under the line item, “Department of Education Loan Against State Aid.” The total operating budget requires revenue of $264,593,526 to educate just under 5,000 in-district students, pay tuition to private special education schools for 398 students (many of whom attend the School for Children With Hidden Intelligence, which last year charged $123,246.90 a student; aides and transportation are extra), and transport about 45,000 ultra-Orthodox students to private Jewish day schools.

The budget projects private special education tuition this year costing $60,130,948, about $4 million more than last year. Transportation is a large line item at $47,810,102, with an additional $55 million to cover other expenses to private schools such as security and textbooks. Public charter school tuition is estimated at $5 million. There is $20 million in COVID federal emergency funds to help cover costs, although those grants expire in 2024.

District Spokesman Michael Inzelbuch, who as the school board attorney is paid close to $1 million a year, put a positive spin on the news:

“While the district remains committed to the need for additional revenue — as opposed to a loan — as recently recommended by the comptroller — it should be noted that this letter can be seen in a positive manner. Positive, as it is the earliest time over the last several years that the district has received notice from the department as to the need for additional revenues so we can continue to provide a thorough and efficient education. Positive, as there is a commitment to work with the district as to the ‘District’s demonstration of need’ as cited by the letter. Positive, as the letter recognizes that there may very well be ‘sums that may exceed the currently approved amount.’“

With the additional $50 million, Lakewood now owes $173 million to the state (which it will never be able to pay back). That is the highest loan balance in the state. The next highest is Lyndhurst, which owes the state less than $3 million.

Lakewood has challenged the state’s school funding formula as unworkable for its population. The DOE claimed it worked just fine, an Appellate Court said it didn’t, and Allen-McMillan is supposed to be working on a solution, although there is no deadline for her report and in August she said she had just started her response.