LAKEWOOD — Surprisingly, one of two state observers recently appointed to examine the financial situation of Lakewood schools as part of a review of state loans has resigned.

The move marks the second time in less than three months that a state comptroller has resigned in Lakewood and comes as the school board seeks another multimillion-dollar state loan.

Kelvin Smith, who was appointed by the Department of Education in July 2024 and signed a contract to serve until August 2025, submitted a letter of resignation to the state on Tuesday, citing a decision to “take a break in his work and to enjoy my retirement for a while”. while.”

Smith, a former Willingboro school administrator, is one of two state monitors named this year. The other is Louise Davis, a former Little Falls school principal, who was hired last month and whose contract runs through October 2025.

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A state spokesperson had said recently that the two men were hired to “review the school district’s cash flow” and help determine whether Lakewood deserved a requested $104 million state loan. The district still owes about $173 million from previous loans dating back to 2014.

State officials did not immediately respond to a request for comment on Smith’s resignation.

The appointments of Smith and Davis had sparked opposition from several members of the Lakewood Board of Education, who wanted to retain former state monitor Robert Finger, who was hired in December 2023 and tapped to serve through December 2024.

Finger resigned at the end of August and gave no reason for his departure. The school board had sought to reappoint Finger to a new $40,000 consulting position on Nov. 13, but Smith and Davis blocked the appointment.

State monitors are appointed by the Department of Education, but paid by the district. Smith and Davis’ contracts each pay them $125 an hour, for a maximum of $208,000 a year.

When Smith and Davis blocked Finger’s reappointment, Smith said, “The Department of Education has some problem with the amount and who is going to be involved in this.” »

But Smith did not elaborate on details at the time and did not respond to requests for comment Wednesday about his departure or the future of the district. Davis also could not be reached for comment.

Superintendent Laura Winters, board attorney and spokesperson Michael Inzelbuch and Deputy Business Administrator Kevin Campbell also did not respond to requests for comment Wednesday.

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Some board members spoke in favor of Finger earlier this month when his nomination stalled, saying he was better equipped to help the district deal with ongoing financial problems.

“We think he would be valuable to the district because he’s been with us before,” board member Moshe Raitzik told Smith and Davis at the meeting. “He’s been there before… We feel like he knows the district very well. The ins and outs and knows how to get things done in the district’s favor.

How Lakewood Schools Got Here

The current situation began in July when Smith was hired by the Department of Education as a state monitor for Lakewood schools at a salary of $125 an hour for up to 32 hours a week.

At the time of Smith’s appointment, Finger, who had served as state comptroller since December 2023, was still under contract under an agreement that was set to end in December 2024.

In October, the state nominated Davis, on par with Smith. His contract runs until October 2025.

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Since his first appointment as state comptroller in 2014, Lakewood has not had two full-time comptrollers at the same time until now. Initially, state officials said Davis and Smith were hired to provide support to the district.

But more recently, a spokesperson for the state Department of Education said they were hired, in part, to conduct a study of the district’s “cash flow” to help school officials The state to decide whether Lakewood should receive a requested $104 million state loan.

Lakewood schools have borrowed more than $200 million in state loans since 2014. The district has also been in a long-running dispute with the state over its annual aid program, which school officials say The school is largely underfunded.

Joe Strupp is an award-winning journalist with 35 years of experience covering Lakewood and several local communities for APP.com and the Asbury Park Press. He is also the author of four books, including Killing Journalism on the state of the news media, and an adjunct professor of media at Rutgers University and Fairleigh Dickinson University. Contact him at [email protected] and 732-413-3840. Follow him on Twitter and TruthSocial at @joestrupp

This article was originally published on the Asbury Park Press: Lakewood schools see second state monitor resign this year