Outrage over Newark’s $500M school lease as 167 NJ districts lose funding

⚠️ Newark schools approved a $500 million no-bid lease for a new elementary school.

➡️ The developer donated at least $92,500 tied to Mayor Ras Baraka’s campaigns.

🔴 Republicans want the state to block the deal and tighten school lease rules statewide.

NEWARK —  A GOP lawmaker is blasting New Jersey's largest school district over a half-billion-dollar deal with one of the mayor's top donors.

The Newark school board is backing a plan to lease a property on Freeman Street for $500 million over the next 30 years. An abandoned Catholic school would be demolished to make way for a four-story elementary school serving fewer than 700 students. The school district would not own the building after the lease expires.

In an interview with NJ Spotlight News, Newark Public Schools Superintendent Roger Leon defended the $1.4 million-a-month lease agreement as a "great strategy" given the city's current state of affairs. He said that by law, the New Jersey Schools Development Association has sole discretion to build new schools. According to Leon, the district was promised 40 new school buildings and got only nine.

The school board unanimously approved the no-bid proposal in March. It's now up to the state to make a final decision to approve the deal. Last month, 20 Republican lawmakers sent a letter to state authorities urging them to reject the proposal.

Questions grow over Newark developer tied to mayor's donors

Along with the hotly contested financials, questions remain about how the board selected the developer for the $500 million contract. District officials refused to give a name at a March 25 school board meeting, saying only that the contract was awarded to a limited liability company.

However, records first discovered by NJ Spotlight News reveal that prominent Newark developer Scott Fields was selected. It's unclear if other developers were considered.

Fields, his family members, and employees have contributed at least $92,500, according to independent Pulitzer Prize-winning journalist Ian Shearn. Fields was Baraka's top donor in 2025.

However, Newark Mayor Ras Baraka has denied any prior knowledge of the deal or any role in it. Baraka, who ran for governor last year, told NJ Spotlight News that he doesn't talk to any school officials about real estate contracts.

“I’m being blindsided about something that I have no knowledge of whatsoever. And even if the man donated to my campaign, he could do business in the city wherever he wants," Baraka said in March, according to the report.

READ MORE: NJ education crisis: teacher layoffs and school closures

New Jersey Republicans push new rules for long-term school leases

Still, the connection has raised concerns about Newark's $500 million plan. Assemblyman Alex Sauickie, R-Ocean, said the deal was reached behind closed doors despite public concern. He's introduced two bills as a direct response.

The first (A5032) would require SDA districts like Newark to solicit at least three lease proposals before moving forward on contracts with developers to build and lease new school buildings. The second bill (A4985) would require voter approval, or approval by a board of school estimate, for a school district to have a lease agreement longer than 15 years.

"When billions of taxpayer dollars are involved, there should never be a situation where politically favored developers receive sweetheart arrangements without meaningful public scrutiny or competitive review," Sauickie said.

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Why Newark school spending gets attention across New Jersey

The Newark school district's size and mind-boggling state aid help explain why Newark's finances receive such scrutiny. Newark Public Schools has over 44,000 students, making it the largest school district in New Jersey. But its residents largely aren't paying for their education.

In New Jersey, the median homeowner pays over $10,500 in property taxes, and more than half of that goes to schools. In Newark, only 29% of a resident's $7,640 property tax bill goes to education, while 58% goes to local municipal costs.

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Instead, taxpayers in other New Jersey towns are footing over 80% of the bill. Each year, Newark schools receive well over $1 billion in state aid. Gov. Mikie Sherrill's proposed 2027 budget pushes that to $1.38 billion in state aid while 167 other school districts lose funding. Newark has proposed a $1.67 billion budget for the next school year.

In June 2024, Sauickie and State Sen. Declan O'Scanlon, R-Monmouth, blasted the school district for spending $44,000 on a "fun day" for 275 staff and 140 students. Around $33,000 of that lavish spending was funded by school aid from taxpayers throughout New Jersey, and the state later forced Newark to repay it.

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