New Jersey Moves to Tighten Oversight of Charter Schools as Governor Murphy Approves Major Reforms
Governor Phil Murphy signed comprehensive accountability changes to improve charter school transparency, financial responsibility, and ethics in New Jersey. New charter school regulations are the most extensive in the state’s 30-year history and reflect growing concerns about public education budget management.
New Jersey’s charter schools are important, especially in metropolitan areas where families use them instead of public schools. Statewide, 84 charter schools serve almost 64,000 students in 44 communities. Many of these schools offer critical education options, but state leaders believe stricter controls are needed to maintain public trust and protect taxpayer dollars.
The measure follows charter school financial and governance investigations that identified major concerns. Reports highlighted excessively high executive compensation, family-run operation conflicts of interest, and suspected state ethical crimes. These findings prompted lawmakers and school groups to demand clearer standards and better enforcement.
Governor Murphy stated the reforms prioritize children and communities while using public monies appropriately. He stressed that state-funded charter schools must be transparent and accountable like public schools. The governor believes increased control will guarantee that education decisions are based on student needs rather than private interests.
Charter schools must submit detailed financial plans to the New Jersey Department of Education under the new laws. These plans must explain administrative costs and show why a new or expanded charter school is needed in a district with public or charter options. Schools must also publish their annual budgets and perform open hearings to inform families and taxpayers.
The admissions process will also be regulated. Charter schools will use a random lottery system when demand exceeds seats, prohibiting selective admissions that could disadvantage some kids. The state will also ban for-profit charter schools.
Governance regulations are another reform need. One-third of charter school board members must live or work in the school’s service area, and trustees must live in New Jersey. Goal is to keep decision-makers close to people and neighborhoods affected by their choices.
The statutes also empower the state education commissioner to address issues. Schools that don’t fix problems risk probation or losing their charter. This adjustment is meant to speed up and improve critical issue resolution rather than let them fester.
Athletic recruitment practices are also limited to prevent “super-teams.” To ensure fair competition, charter schools can only recruit student-athletes within 20 miles.
After almost a year of negotiations between state officials, education unions, and charter school lobbyists, lawmakers called the legislation a skillfully negotiated compromise. Supporters say the proposals balance school choice with solid student and public budget protections.
The modifications will take effect in 2027–2028, giving charter schools time to adjust. The signing of these laws marks a final push to change New Jersey education policy before Governor Murphy’s term ends.
State leaders argue the revisions will boost charter school credibility, not undermine them. Officials hope the new regulations will increase openness and accountability to guarantee that every New Jersey child has access to a high-quality education supported by ethical governance.
Sources:
New Jersey Governor’s Office
New Jersey Department of Education
New Jersey State Legislature
