Understanding Lakewood School Funding: Property Taxes, State Aid, and the Bigger Picture

The recent exchange of letters on TLS about what would happen if Lakewood’s private-school students suddenly enrolled in the public school system raises important questions. To understand the real issues, we need to look at how our schools are funded today, how much comes from local taxpayers, how much from the state, and why Lakewood’s situation is unique.

Where Do Lakewood Property Taxes Go?

Every year, Lakewood residents pay property taxes. Almost half of those dollars—about 44%—go directly to the local school district. That means when you write your property-tax check, nearly one out of every two dollars is earmarked for education. The rest is divided among municipal services (about 31%), county services (about 18%), and smaller allocations like fire districts.

How Much Comes From the State?

New Jersey distributes school funding to each district based on a formula. For next year, Lakewood’s schools are set to receive about $29 million in state aid, a modest increase from the year before. But Lakewood’s public-school budget is projected at more than $400 million. The gap between what the state provides and what the district needs is covered mainly by local property taxes—and, increasingly, by state loans.

Why Is Lakewood Different?

Lakewood’s public schools enroll fewer than 5,000 students, yet tens of thousands of children attend private schools, mainly yeshivas. Even though these children are not in the public schools, the district is still responsible for many of their needs—transportation, special-education services, and other legally required supports. That means the school budget must cover both public-school students and services for private-school students.

This unusual situation has left the district heavily dependent on borrowing. State loans have piled up into the hundreds of millions, because the funding formula doesn’t fully account for the costs Lakewood faces.

What If All Private-School Students Enrolled Publicly?

Some argue that if every private-school child entered the public system, the district would finally receive more state funding. But the math is sobering. Educating an additional 30,000 students at public-school costs (roughly $12,000–15,000 per child) would add $360–450 million a year to the budget—essentially doubling it. Even if state aid increased, local taxpayers would almost certainly face a dramatic spike in property taxes to cover the gap.

The Real Issue: A Formula That Doesn’t Fit

At the heart of the debate is not whether every child should attend public school, but whether the state’s funding system reflects the reality of Lakewood. A district with thousands of private-school students still has significant costs, yet receives aid as if those students barely exist. This mismatch has created an unsustainable cycle: rising budgets, growing debt, and heavy pressure on property taxpayers.

Moving Forward

Lakewood’s challenge is not just about “what if” scenarios. It’s about finding a fairer way to balance the responsibility between local taxpayers and the state. The community deserves a funding formula that acknowledges both the public-school population and the real costs of serving tens of thousands of private-school students. Without that, debates will continue—but the underlying problems will remain unsolved.

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11 COMMENTS

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withheld
2 months ago

This is very misleading. The concept of enrolling all kids into Public School would obviously only be for recording purposes. This concept has been brought up in the past where all schools would become part of the Public school system for one day. All children enrolled into the Public School system while attending their Mosod that they are in. Back in the day the rabonim in Lakewood did not want to set this up due to fears of getting tangled in the fight between Satmer and Viznitz Monsey who were in intense fight over of they should or set up such a system. As everything else in town it has remained status quo ever since. No one is planning on enrolling into Public School chas veshalom. They will just go onto the state enrolment books to get fair funding.

shmendrick
Reply to  withheld
2 months ago

That would be 100% illegal. The state can’t fund mosdos in that manner. Thus the only way to do it, is to actually enroll in Public school.

Kate
Reply to  shmendrick
2 months ago

If you choose to do this you will cause more chaos and understandable anger toward your community. You can’t win by bullying. What are you teaching your children by this tactic? Enroll but not attend? It is a lie and it is intimidation.

Anonymous
Reply to  withheld
2 months ago

So in other words, you’re suggesting lying to the government on a large scale?

A Lakewood Resident
2 months ago

The Dumbest Argument Ever: A Lakewood vs. Newark Reality Check

Let’s put an end to the nonsense with some inconvenient math.

1. Property Taxes
Ocean County’s average property tax rate is 1.40%. Lakewood clocks in at 1.43%. Translation: we’re paying our fair share. No freeloading here.

2. Student Population
Lakewood: 36,647 students.
Newark: 40,220 students.
Pretty close—apples to apples.

3. Local Education Funding
Lakewood property tax revenue for education (2025): $124,611,761, which breaks down to $3,400 per student.
Newark: $225,840,768, or $5,615 per student.
So Newark gets about 65% more per student just from local taxes.

  1. State Aid (Brace Yourself)

Lakewood: $29,000,000 total = $791 per student.
Newark: $1,326,144,594 total = $32,972 per student.
Yes, you read that correctly. For every $1 Trenton sends to a Lakewood student, it sends $41 to a Newark student. If this is “fair,” then I’m the Queen of England.

5. Waste vs. Deficit
Let’s assume a reasonable cost per student is $20,000 per year.
• Newark: Overfunded by $658,492,297.20. That’s more than half a billion dollars floating around. Where exactly is it going? No one seems to know.
• Lakewood: Underfunded by $579,328,602.45, or about $15,808 per student. We’re plugging holes with band-aids while Newark lights cigars with hundred-dollar bills.

6. The Bottom Line
Lakewood taxpayers are doing their part. The state isn’t. Newark’s bathtub is overflowing while ours is bone dry. Our politicians should be embarrassed that they’ve let this imbalance continue, and someone ought to start asking hard questions about what Newark is actually doing with its extra $658 million.

Wake up, Lakewood. We’re not getting “our fair share.” We’re getting robbed in broad daylight—and smiling politely while it happens. Remember this the next time you vote.

shmendrick
Reply to  A Lakewood Resident
2 months ago

No way are there only 36-37k Frum elligible students in Lakewood. You need to count Primary through 12th grade.

Tom Petruzziello
Reply to  shmendrick
2 months ago

The last I recall , the Asbury Park Press said the public students ~4200 and private students just under 55,000. The same thing is happening in Jackson and Toms River Boards. I had emailed Avi Schnall about this disparity and he replied that he was presenting legislation to recognize this. Have not heard anything more about this. I am a resident in Lakewood in the Original Leisure Village, so my money is at stake as well

person
Reply to  A Lakewood Resident
2 months ago

You’re right that it’s not equal. But that’s because we are not enrolled in public school. The funding is for public school.

a b
2 months ago

In other towns (where obviously the majority of children are using the public school system):
How does property tax rate compare to that of Lakewood?
And how much of the schooling costs is provided by school district and how much by the state?

Shlomt4y
2 months ago

If my calculator is correct, $400M ÷ 5K students is $80K per student. It seems like math is not a hot topic in the public schools

Last edited 2 months ago by Shlomt4y
Jake
2 months ago

I attended private school here in Lakewood, it took years to get transportation with public school buses, we just filled empty seats.
Private schools here are getting buses to separate boys from girls, not the taxpayer’s problem but we pay for it.
Can my grandson enroll in a Yeshiva or another orthodox facility? I’m guessing no. Do a Yeshiva teach math, American history or English, I’m guessing no, or the children attending these schools are just dumb cause they can’t add or work with fractions or tell me the first 5 presidents, I live by three orthodox schools and have conversed with passing students.
We should have no responsibility for religious teachings.
The orthodox community is responsible for their teachings not us.