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Ex-Governor Murphy vetoed Lakewood’s special needs school expansion bill on final day in office

  • Shore News Network
  • February 10, 2026
  • 9:38 am
Ex Governor Murphy vetoed Lakewoods special needs school expansion bill on final day in office

LAKEWOOD, NJ – In a move that stunned local advocates and education leaders, Governor Phil Murphy allowed a bill to die by pocket veto on his last day in office—legislation that would have cleared the way for Lakewood’s School for Children with Hidden Intelligence (SCHI) to expand its campus despite long-standing environmental restrictions.

The bill, sponsored by Senator Bob Singer and Assemblyman Sean Kean, had passed both chambers of the New Jersey Legislature just last week with bipartisan support. It sought to lift and relocate a conservation easement currently restricting SCHI’s property, transferring it to a nearby parcel roughly double the size of the original protected area.

Supporters argued the measure struck a careful balance—preserving open space protections while finally allowing SCHI, which serves children with severe special needs, to grow alongside its rising enrollment.

School’s growth stymied by environmental restriction

Founded in Lakewood and renowned for its specialized programs for children with developmental and physical disabilities, SCHI has operated at capacity for years. Administrators say the existing easement—imposed to safeguard a small section of woodland—has effectively frozen any chance of expanding classrooms, therapy centers, or recreational facilities on the property.

Under the now-vetoed plan, conservation protections would not have been eliminated; they would have been shifted to a larger nearby tract, maintaining net environmental preservation while freeing the school’s existing site for modest construction.

Pocket veto leaves supporters frustrated

Governor Murphy’s decision to take no action before leaving office—a pocket veto—means the bill is dead for now, unless reintroduced by the next administration. Advocates for SCHI expressed disappointment, noting that the legislation had been carefully crafted to address both educational and environmental concerns.

SCHI Legal history and exoneration

Rabbi Osher Eisemann, founder of the Lakewood, NJ-based School for Children with Hidden Intelligence (SCHI), was fully exonerated in August 2024 after a nearly decade-ong legal battle over alleged misappropriation of funds.

Convicted in 2019 of money laundering and misconduct, his conviction was overturned after it was discovered prosecutors withheld exculpatory evidence, leading to a dismissed indictment. 

Key details of the case include:

  • Initial Charges: In 2017, Eisemann was charged with stealing nearly $1 million in public funds.
  • First Trial & Appeal: A 2019 jury found him guilty of money laundering and misconduct, but acquitted him of theft and corruption. The conviction was later vacated after a New Jersey Appellate Division and New Jersey Supreme Court upheld a ruling that the state withheld evidence.
  • Dismissal: A Superior Court judge dismissed the case in July 2024, citing that the state failed to prove a crime was committed.
  • Key Evidence: The defense argued that the “stolen” money was part of a legitimate loan, and a school bookkeeper admitted to mistakes in accounting. 
  • Bill would have allowed SCHI to expand by transferring easement
  • Conservation protections preserved under proposed land swap
  • Murphy’s pocket veto ends effort as he leaves office

It remains unclear whether legislative sponsors plan to revive the measure under incoming leadership, but community leaders in Lakewood have already signaled their intent to push for the proposal again in the new legislative session.

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