New Jersey Sets First-Ever Rules for Charter Schools After Decades of Limited Oversight
After nearly three decades of limited statewide standards, New Jersey charter schools are poised to change their governance. New Jersey lawmakers passed a comprehensive package of laws on the last day of the legislative session to codify charter school admissions, public funding, leadership, and employment practices for the first time.
Governor Phil Murphy will evaluate the Senate and General Assembly-passed legislation. State officials expect the governor to sign the bills. Schools would have time to conform to the new restrictions in the 2027–2028 school year.
New Jersey legalized charter schools in 1997 as an alternative to public education. Since then, the industry has developed to serve tens of thousands of state pupils. No framework has provided consistent accountability, transparency, and governance principles for charter schools until now.
New legislation is intended to address that gap, say lawmakers. After investigative reporting revealed charter school financial and ethical issues, reform gathered momentum. The studies prompted concerns about excessive CEO salaries, potential conflicts of interest, and insufficient control of taxpayer-funded operations.
The legislation’ supporters say the purpose is to guarantee charter schools function responsibly like all publicly supported institutions. State lawmakers who drafted the legislation say the modifications safeguard children, families, and taxpayers while retaining strong educational options for communities.
Charter school operators would have to submit detailed financial projections to the NJDOE under the proposed structure. These plans must explain estimated administrative costs and show why a district needs a new charter school, including how it would satisfy needs not met by existing public or charter schools.
The bills also tighten governance. One-third of charter school trustees must reside or work in the school’s region in New Jersey. Concerns regarding accountability and educational quality in entirely online charter schools led to their ban.
State oversight would grow. The education commissioner would have the power to put schools on probation or revoke charters for major issues. Charter schools would have to reveal their annual budgets, hold expenditure hearings, and disclose top executive and administrator pay. To avoid unfair competition, athletic recruitment would be restricted to a specific region.
High-profile cases from recent probes have dominated bill debate. One charter school network was highlighted after financial filings showed executive salaries considerably above state education leaders. The Office of the State Comptroller launched a formal inquiry, which found that the network violated public contracting laws, nepotism policies, and failed to account for tens of millions of dollars in public support.
The independent state comptroller stressed transparency and legal use of taxpayer funds. Its report accelerated reform efforts and shaped the final law.
Despite criticism, education policy opponents supported the proposals. The New Jersey Education Association and New Jersey Public Charter School Association supported the legislation, indicating broad support for improved restrictions. Charter school backers say the bill modernizes antiquated laws and recognizes charter schools’ role in public education.
Union and school leaders see the changes as a step toward cooperation. They believe that shared standards may assure outstanding education for all students in a fair, transparent, and accountable system without traditional public and charter schools competing.
The reforms would change New Jersey charter education if passed. Charter schools would follow a single set of standards to build public trust, safeguard public dollars, and put kids first for the first time.
Sources:
New Jersey Legislature
New Jersey Department of Education
Office of the State Comptroller, New Jersey
