Assemblyman Alex Sauickie called the Local Finance Board’s decision to approve Newark Public Schools’ proposed $498,397,000 lease for a school ‘reckless and irresponsible’ considering that a recent audit of the district revealed millions in questionable spending, financial mismanagement, and matters referred for criminal review.
“The state auditor just exposed millions in waste, excess state aid, missed savings, and questionable spending in Newark, with certain matters referred for criminal investigation. And now, less than two weeks later, the state is approving another half-billion-dollar commitment? It’s completely reckless and irresponsible,” Sauickie (R-Ocean) said.
The Local Finance Board, which is part of the New Jersey Department of Community Affairs, approved a nearly $500 million, 30-year school lease by a vote of 4-2 at its meeting on Thursday.
“The Local Finance Board’s job is to protect taxpayers, not rubber-stamp enormous commitments from districts with documented financial oversight failures,” Sauickie said. “Members even admitted that the costs were exorbitant for a building that the district won’t even own, and the clause that allows Newark to extend the lease after 30 years is incomprehensible. But most approved it anyway.”
On Wednesday, Sauickie wrote to the Department of Community Affairs Commissioner Jacquelyn Suarez and the Local Finance Board Chair Michael Rogers, urging them to table the lease agreement pending an independent examination of its financial terms, procurement process, participating entities, and potential conflicts of interest.
“We don’t know what the state auditor found that warranted a criminal investigation. For all we know, this lease could be among the matters requiring scrutiny. I’m not alleging that it is, but why would the state take that chance without further review?” Sauickie said.
NJ Spotlight News reported that the developer who won the contract to lease the building is a donor to Newark Mayor Ras Baraka’s 2025 campaign for governor. The school is expected to be completed by spring 2029. The first year of the lease agreement is projected to cost more than $11 million.
“Newark has already received approximately $1.4 billion in state education aid this year and has now secured another half-billion dollars. How is that fair to taxpayers and students everywhere else in New Jersey?” Sauickie said. “School districts across Ocean, Monmouth, Burlington, Middlesex, Morris, Hunterdon, and Bergen counties have been forced to eliminate programs, cut teachers, reduce sports and even close schools because Trenton claims there isn’t enough money.”
Sauickie said he is considering other ways to prevent the taxpayer waste in Newark, including challenging the lease.
