New Jersey Officials Deny Lakewood’s $6 Million Attorney Renewal Amid Mounting Financial Troubles
New Jersey’s Department of Education took a closer look at the Lakewood Board’s spending habits. On February 25, a detailed report from the Office of Fiscal Accountability and Compliance (OFAC) criticized Inzelbuch’s arrangement for not being competitively bid—something usually done to ensure taxpayers get the best deal. The lack of transparency in billing added fuel to the fire.
As Lakewood faces a deepening budget crisis, the state-appointed fiscal monitor rejected Inzelbuch’s reappointment for the upcoming 2025-2026 school year. The monitor cited two major reasons:
- Lakewood’s worsening financial situation.
- Incomplete paperwork regarding Inzelbuch’s contract renewal.
Lakewood’s Mounting Debt: The Bigger Problem
Lakewood’s financial issues run deeper than one attorney’s salary. Though the district officially serves around 4,460 public school students, it is legally required to provide transportation and special education for over 42,000 private yeshiva students. This unique challenge has pushed the district into serious debt.
To date, Lakewood owes $173 million in state loans. Worse, they’ve applied for another $65 million loan, which could push their total debt to $238 million. Many critics argue that paying nearly $1 million in legal fees a year while asking the state for more loans is both irresponsible and unfair.
What Does Lakewood’s Board Say?
During a tense Board of Education meeting on March 13, Board President Moshe Bender defended the contract. He stated that Inzelbuch’s payments are backed by itemized invoices and comply with legal standards. Bender also pointed out that when Lakewood’s unique private school obligations are factored in, their legal costs fall below the state average.
However, the state report disagreed, focusing only on public school data and calling out the lack of open bidding and accountability.
The Board now plans to file a formal petition challenging the state’s decision.
Community Reaction: Parents and Students Speak Out
For many parents, educators, and students, this issue hits close to home. They feel public school students are being neglected while administrators funnel funds into high legal fees.
Maria Torres, a Lakewood High School senior, summed it up:
“We’re borrowing millions just to keep the lights on, and this guy’s making a fortune.”
Her family is even part of a lawsuit against the state, demanding fairer funding.
On social media, particularly on X (formerly Twitter), many users cheered the state’s intervention. Some called Lakewood “a perpetual source of scams,” while others saw the move as a rare win for financial accountability.
Inzelbuch’s Defense: What Does He Say?
Michael Inzelbuch isn’t backing down. He argues that his leadership has helped the district weather multiple storms, including:
- COVID-19 challenges
- Teacher strikes
- Labor disputes
In a recent statement, he said:
“The legal process I established has proven successful while lowering overall costs.”
But with Lakewood’s debt climbing, public school programs being cut, and test scores suffering, many residents question whether the district is truly benefiting from his services.
Why This Matters: Broader Issues at Stake
This isn’t just about one lawyer’s paycheck. It’s about:
- Fiscal responsibility: Should a struggling district pay almost $1 million a year to one attorney?
- Transparency: Why was there no competitive bidding process?
- Educational equity: Are public school students, especially low-income and Hispanic children in Lakewood, being left behind?
- Systemic reform: Despite a 2023 court ruling stating that the state’s funding formula for Lakewood is unconstitutional, meaningful changes haven’t been made.
What’s Next for Lakewood?
The Lakewood Board plans to challenge the state’s decision legally. Meanwhile, the district’s financial woes continue, with the possibility of more loans and cuts on the horizon.
This story serves as a wake-up call—not just for Lakewood, but for all districts facing financial stress. It’s a reminder that public funds must be managed wisely, with the needs of students coming first.
Final Thoughts
The state’s intervention has opened up a much-needed conversation about priorities, accountability, and how public education dollars should be spent. Whether Lakewood’s leadership will change course remains to be seen, but parents and students are making their voices loud and clear.
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