Sign up for Chalkbeat Newark’s free newsletter to get the latest news about the city’s public school system delivered to your inbox.Six years after New Jersey handed control of Newark Public Schools back to the community, a group of 20 Republican lawmakers is pressing federal and state officials for more oversight of how the district handles money.The state’s largest school district is under scrutiny after it announced plans last month to enter into a $498 million, 30-year lease agreement to open a new elementary school in the city’s East Ward, Newark’s most densely populated neighborhood, where more than half of schools are overcrowded, according to a Chalkbeat analysis. But the Republicans — none of whom represent Newark — are raising questions about the proposal, as well as what they allege is Newark’s mismanagement of federal pandemic relief funds. In an April 2 letter to the state education department, comptroller, and local finance board, Republicans slammed the district for what they claim are “epic fiscal failures and taxpayer waste” and urged officials to reject the district’s proposed lease and ensure the district “stop wasting taxpayer dollars.” District officials have said the proposed lease would help add seats in the East Ward, as the state lacks funding to move forward on new school projects already identified in Newark. In a separate letter to the U.S. Department of Education on March 31, a state senator and two Assembly members asked Secretary Linda McMahon to conduct an “immediate federal review” into how the district spent $287 million in pandemic relief.In a statement to Chalkbeat on Tuesday, Ellen Keast, a spokesperson for the U.S Department of Education, said the federal department is taking the legislators’ concerns seriously. “Misuse of taxpayer funds became widespread under the previous administration, which is why addressing it is a top priority,” Keast said.Paul Brubaker, Newark Public Schools’ communications director, did not respond to a request for comment.Michael Yaple, spokesperson for the New Jersey Department of Education, said the department received the letter from lawmakers and is reviewing Newark’s lease proposal. Yaple could not say when the state education department would decide on the proposal. The Republicans’ calls echo recent efforts across the country to bring back state takeovers of school districts, a practice New Jersey has long used in cases of fiscal mismanagement or academic failures. Critics have said the practice frequently targets districts with large shares of students of color.But Republicans are now raising the same issues cited when the state originally seized control of the district in 1995: mismanagement, lavish spending, and poor student outcomes. GOP Assemblywoman Dawn Fantasia, who represents parts of Morris, Sussex, and Warren counties west of Newark, recently cosponsored a bill that would appoint state monitors to school districts that receive 70% or more of aid from the state. Typically, more than 80% of Newark’s funding support comes from state aid.“Newark has pockets of excellence. I don’t doubt that at all, and they should be very proud of some of the gains that they have made,” said Fantasia, who signed both letters and has alleged on Fox News and social media that Newark has mismanaged money. “That does not excuse egregious, ridiculous spending and behavior on nonsense for adults.” The scrutiny comes as Superintendent Roger León tries to consolidate the gains Newark has made since the state officially ended its 25-year takeover of the district in 2020. At that time, León said he was worried about the school system’s recovery, not from the pandemic, but from the state’s control. During a Fox News show last week, León was asked to respond to Fantasia’s concerns about Newark’s spending not resulting in better student outcomes. He said he had “absolutely no idea” what Fantasia was talking about. Instead, León touted the district’s 90% graduation rate and its 10.4% chronic absenteeism rate.Under León, the district has also opened ten new schools and increased its enrollment. That trend has been fueled in part by a surge in English language learners and students with disabilities who require more money to educate. For the next school year, the district said its costs are rising and closed a $122.9 million budget gap by reallocating funds, drawing from its budgeted fund balance, and cutting 30 teaching positions.The district in March approved a $1.67 billion budget for next school year and expects to receive a record $1.38 billion in state aid.“I don’t think we have a money problem in these large districts,” Fantasia said. “It’s how those dollars are allocated, what the deliverables are, and what student outcomes are.”Democratic Gov. Mikie Sherrill’s office referred questions about Newark’s lease proposal and investigation into its finances to the state education department. Her proposed fiscal 2027 budget would add funding for new roles there to help districts facing budget deficits.Newark, the state’s biggest school district, receives the largest share of state aid, which the School Funding Reform Act distributes to districts based on student population, property valuations, and the income of residents, according to Danielle Farrie, research director for the Education Law Center.Proposed school lease provokes New Jersey Republicans’ anger At the center of the Republican complaints is the lease proposal for the new site of the Riverfront Elementary School in Newark’s East Ward. Students in the neighborhood learn in school buildings that are on average a century old. But the Schools Development Authority –– the state agency that builds new schools for Newark and 30 other high-poverty districts –– has rebuilt only two new school buildings since 2006, and nine total for the district overall. Hawkins Street School is located in the East Ward of Newark, New Jersey and was originally built in 1887.The Republican letter to the state notes that the Riverfront School deal is more than the roughly $284 million cost of Perth Amboy High School, the most expensive school built by the SDA in New Jersey. The district already holds a lease worth over $300 million for the Newark School of Architecture and Interior Design, also in the East Ward. The links between Mayor Ras Baraka and the proposed Riverfront School’s developer, 56 Freeman Street LLC, have also increased scrutiny of the district. District officials have defended the lease deal by pointing out delays in projects run by the SDA, which estimates it needs $7 billion to fund construction projects in the 31 high poverty districts alone. Republican lawmakers counter that by saying the nine new schools built for Newark since 2006 are “nearly one every other year.”The Republican letter also cites a 2024 state audit that required the public school system to return $33,650 in state aid that officials spent on an outdoor party for central office staff and their families. The district has not told Chalkbeat if it returned the money. The state’s education department investigation determined that the spending violated laws on how school boards can spend taxpayer dollars since the event lacked educational or professional development value. Nearly 70% of students in grades 3-9 fell short of literacy standards on state tests in 2025, and roughly 80% did not meet math standards. The district has improved scores by about two percentage points every year since 2022, and because of the improvements, the state designated Newark as a high-performing district this school year. But Republican lawmakers argue Newark’s spending is still out of sync with its academic results. Jessie Gómez is a reporter for Chalkbeat Newark, covering public education in the city. Contact Jessie at jgomez@chalkbeat.org.
