The State of NJ offered Lakewood school district a $28 million dollar loan to plug the budget for the upcoming year. Currently according to reports Lakewood owes the state $47 million from previous loans.
Officials were hoping for a grant that wont have to be paid back. APP reports the state wrote in a letter that Lakewood district leaders did not turn over documents backing their request and can not offer a $28 million grant.
Officials were hoping for a grant that wont have to be paid back. APP reports the state wrote in a letter that Lakewood district leaders did not turn over documents backing their request and can not offer a $28 million grant.
Board attorney Inzelbuch said he was not aware that he state could not access the information according to APP.
The BOE will meet on Wednesday and decide on accepting the loan which will obviously have to be repaid by Lakewood taxpayers
Someone here is lying the question is who. If the State requested documents and they were not turned over, the entire board and Inzelbuch should resign immediately due to incompetence or worse.
ReplyDeleteOn the one hand,it would seem odd that the State is withholding funds due to lack of documents. The State appointed monitor created a budget for the school district that had a $28 million dollar deficit, if he didn't have access to documents, than how was he able to create that budget. Additionally, we haven't heard anything about the State being willing to cover the deficit prior to now. If they were, you would think that this information would have gotten out. Additionally, if the state saw the need for a grant, but wanted documentation, why wouldn't they offer a grant contingent on receiving said documentation?
On the other hand. Inzelbuch is on record saying that the district needed a grant and long term solution and that a loan was not acceptable. Yet, in the APP article, they stated he was "appreciative" of the state loan. Why would he be appreciative of the state loan that he previously found unacceptable? He also stated that he would immediately sue the state (and/or resign) for not providing a sufficient education if they rejected a grant, I haven't heard anything about a law suit being filed, why not?
Could it be because he knows that he and the board did not turn over documents that the state required?(If so, why were these documents not turned over). Or is it that all his talk about a "long term solution" for Lakewood was just posturing, and all he really cares about is his short term pay check?
Do people realize that if this loan goes through, each homeowner in Lakewood will be on the hook for over $6k in loans to the State, and the liability will only increase in the years to come? Do people realize that if Murphy lifts the 2% tax cap, the township will raise taxes immediately to cover these loans and future deficits? We can easily be looking at a 30% tax increase in that situation. How many people can afford a 30% tax cap? How many will run to TR and Jackson? This would completely destroy the property values in Lakewood, as well as most peoples equity in their homes. A disaster is looming, and something stinks to high heavens, the question is, where is the odor emanating from?
You are reading too much into this. The State obviously realizes that there is,a 28 million deficit .Like inzelbuch said they are not in the habit of just lending people 28 million dollars for no reason .The monitor told them that . However they don't want to just start giving Lakewood free money as that will start,a precedent here and in other districts. So they say it is a loan because they have not been able to analyze the budget . I don't think they have asked for specific documents that they have not been given . They just never sent a bunch of accountants down to analyze it so they can truthfully claim thst they haven't got a full picture .But obviously by the fact that they are loaning the money ,they are relying on their own monitor that the district has a,28 million dollar shortfall .If the district were to turn down the loan ,then the district would be accused of not caring about the children . So the state gives the money ,but plays politics and forces the district to accept a loan .
DeleteAnonymous, your post makes no sense. A loan is very different from a grant, it is not just semantics. Additionally, the State has had their monitor in Lakewood for tears and part of their job is to analyze budgets. As far as setting a precedent, that also makes no sense, as the situation in Lakewood is unique, not to mention that there are other districts where the State has provided special funding for.
DeleteIf the,state doesn't believe there,really is a shortfall ,they would not be loaning the money , so that also doesn't make sense .
DeleteThe State does believe there is a shortfall, but they don't want to pay for it. Or, they are willing to pay for it, but a grant requires more documentation than a loan.
DeleteIts all politics .They are fully aware that there is no possibility of there being enough funds to pay back this loan. If they really expected it to be paid back ,they would not loan it in the first place .
DeleteI don't know what your objective is, but a loan is not a grant. Murphy lifts the property tax cap, and then the state collects their loan.
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