$500M Newark school lease deal tied to donor draws backlash amid NJ funding crisis
Newark, NJ – As school districts across New Jersey grapple with budget cuts and rising property taxes, a $500 million no-bid lease agreement in Newark is drawing scrutiny for its cost, structure, and political ties. The 30-year deal, which commits the district to roughly $1 million per month without eventual ownership of the building, has become a flashpoint in a broader statewide debate over education funding priorities.
It’s a deal Mayor Ras Baraka denied having any knowledge of, despite remarks from Assemblyman Alex Sauickie who represents portions of the Jersey Shore in the New Jersey Assembly.
“I knew nothing about this week’s vote by the school board to advance the project until I was approached by media — and I had nothing to do with either the agreement to lease this building in the Ironbound neighborhood, or the selection of the developer,” Baraka’s office told Shore News Network today. ““I’m being blindsided about something that I have no knowledge of whatsoever. “I don’t speak to anyone from the district about issues like real estate deals. I don’t call the superintendent or talk to anybody on the board about contracts. The only thing I speak to the superintendent about is student performance. This proposal is a lot of money —and without knowing any details, my initial thought is that the best deal is to get the SDA to build the building, so that we don’t have to pay for it.”
The agreement, first reported by NJ Spotlight News, claimed a developer identified as a major donor to Newark Mayor Ras Baraka. Critics say the lack of a competitive bidding process and limited disclosure to the public and school board raise concerns about transparency and oversight in the use of taxpayer funds.
Editor’s Note: New Jersey Spotlight has since issued a retraction in another false claim, which the platform is known for exaggerating politically skewed coverage at times.
No-bid contract and donor ties fuel transparency concerns
According to now retracted NJ Spotlight News, the contract was awarded without a competitive bidding process, and key details about the developer were not immediately disclosed during public meetings. The structure of the lease means the Newark school district will not own the building at the end of the 30-year term despite the $500 million cost.
Key Points
- Newark school district entered a $500 million, 30-year no-bid lease with no ownership at the end
- Developer tied to the deal is reported to be a major donor to the mayor
- Lawmakers contrast Newark funding with cuts impacting other New Jersey districts
The controversy comes as other districts across the state report funding reductions tied to New Jersey’s school aid formula, often referred to as S2, under Gov. Phil Murphy. Some communities have responded by raising local property taxes to maintain school operations.
Lawmaker challenges Newark funding amid statewide cuts
Assemblyman Alex Sauickie, who represents areas including Jackson, publicly criticized the disparity and called out Newark leadership in a social media post. “Hey Mayor @rasjbaraka, how about a school funding debate hosted by the @NJGlobe?” Sauickie wrote. “You win, and I’ll turn a blind eye to the Newark City School District’s frivolous spending for the next two years.”
He added, “I win, and the state gets back $50 million of the additional $60 million Newark is slated to receive again this year to fund my bill A4750. This bill would take care of those school districts that had to raise crazy property taxes just to stay afloat.”
The proposal highlights growing political tension over how state education funds are distributed, particularly as some districts receive increased aid while others face reductions. Lawmakers and local officials continue to debate whether the current formula fairly accounts for enrollment changes, local tax capacity, and district needs.
“After I sent a letter to the Department of Education demanding answers, $33,000 of the $44,000 spent on Newark’s “Staff Fun Day” is now being returned to the state. State investigators determined the event — featuring food, a DJ, a rock-climbing wall, and carnival booths — should not have been paid for with taxpayer dollars, and the district has now been ordered to refund the money,”Sauickie said. “That’s $33,000 in taxpayer dollars clawed back. Is it enough? No. But it proves something important: when you fight for accountability, you can get results. There are still hundreds of millions of taxpayer dollars flowing through this system with little oversight, and I’ll continue pushing for the transparency and fiscal monitoring New Jersey taxpayers deserve.”
Assemblyman Sauickie has been fighting in Trenton to fix the state’s school funding formula which led to the closures and sales of three schools in his district over the past two years.
Sauickie penned the following Op-Ed:
I want to start by thanking Mayor Ras Baraka for following my Facebook page. I appreciate the attention, because clearly, the message is getting through.
I also appreciate the Mayor’s lengthy overview of Newark. It was informative. It was detailed. And it was completely beside the point.
My comments have never been about the City of Newark. They have always been, and remain, about the Newark City School District and its continued mismanagement of taxpayer dollars.
This isn’t new. I didn’t just wake up last week and decide to raise these concerns. I have been calling out the Newark School District for years, because parents across New Jersey have been footing the bill while watching their own schools get cut to the bone.
And despite what the Mayor suggests, this is not a ‘shore Republican’ issue. Parents in Jefferson and Washington Township in Morris County, Ringwood and West Milford in Passaic, Vernon in Sussex, Shamong and Tabernacle in Burlington, and over 150 more, are all asking the same question: why are their kids losing teachers, Advanced Placement classes, sports, and even schools, while Newark continues to spend like there is no limit?
Let’s be clear about what we’re talking about:
- $12 million on an AI security system
- $5 million on a Newark School District museum—yes, a school district museum
- Over $1 million on catering
- Over $200,000 on balloons
Meanwhile, districts in my region are struggling to find $100,000 for a school safety officer or to keep courtesy busing. Parents are holding bake sales just to give their kids opportunities.
That’s not a narrative – that’s a disgrace.
And it gets worse.
In the same year that 90% of Newark third graders could not read at grade level, and 73% of students in grades 3–8 were below proficiency, district administrators and their volunteer school board were traveling to Dallas, Las Vegas, and Honolulu, while maintaining a travel budget approaching $1.1 million. For perspective, all 16 of my school districts combined don’t come close to that level of spending.
When I called out a $44,000 ‘Fun Day,’ the state agreed it violated the law and forced $33,000 to be returned. The response from a board member—‘Does this mean no more fun day?’—perfectly sums up the mindset we’re dealing with.
And perhaps most astonishing is the timing of the Mayor’s op-ed. It comes in the very same week that the Newark School District is reportedly pursuing a $500 million project for a single school—half a billion dollars for one building. So while the Mayor talks about Newark’s contributions, he conveniently ignores the core issue: how the Newark School District is spending the money it receives.
Let me be clear: I want every child in Newark to succeed. I’ve repeated this publicly. This is about kids. It always has been.
But when the Newark School District has received an additional $100 million every year for the past seven years and is set to receive another $60 million this year (the max 6% cap), bringing total funding to roughly $1.36 billion, or over $30,000 per student, while districts like Jackson receive around $3,000, Lacey closer to $2,000, and Little Egg Harbor was forced to raise property taxes by 33%, there is a responsibility to show results and fiscal discipline.
Instead, we see waste, excess, and priorities that are completely out of touch with the realities facing families across this state.
That’s not scapegoating. That’s accountability.
Mayor, I actually like Newark. I’m a Devils fan. I enjoy the Prudential Center. And I’ll gladly admit there are no better Portuguese restaurants anywhere in New Jersey.
But until someone steps in and brings real fiscal responsibility to the Newark City School District, I will continue to call this out—loudly and clearly—on behalf of the parents across New Jersey who are paying for it.
If you’d like to have a serious conversation about fixing this, I’m ready.
If not, I look forward to your next op-ed—hopefully one that simply says, ‘Thank you to the parents across New Jersey who are funding the Newark school district.’ If you post it to your Facebook page, I’ll Like it.