Montclair’s school district is staring down the possibility of a state-appointed fiscal monitor. Here’s a plain-English guide to what a monitor is, how one gets assigned, what powers they have, what it has looked like in nearby districts, and what it could mean here in Montclair. (We also unpacked this on this week’s show. Listen for the back-and-forth.)
First, the local fork in the road
In March, voters will decide whether to raise funds locally to fund the school district’s $19.6 million fiscal hole, or risk a state loan that typically brings a fiscal monitor with veto power over money decisions.
What is a fiscal monitor?
Under New Jersey law, the Commissioner of Education can assign a State Monitor to provide direct oversight of a district’s business operations and personnel matters when certain red flags are present (e.g., audit problems, budget practices that put the district at risk). The powers and triggers are spelled out in N.J.S.A. 18A:7A-55 and related rules from the NJDOE Office of State Monitors. In practical terms, a monitor can sit inside the district, review or override budgets and contracts, and require a corrective-action plan until the state is satisfied the district is financially sound. See the statute here and the NJDOE overview here.
On our latest episode, we summed it up this way: a monitor has “the power to approve or reject budgets, contracts, and staffing decisions,” and they stay until the state says the finances are stable—there’s no preset end date. Listen to the episode for more details
When—and why—does the state send one?
A monitor is more likely when the state sees audit issues (adverse/disclaimer opinions), recurring deficits, or budgeting practices that put students and staff at risk. The state can also advance aid via a no-interest loan to stabilize a deficit; that typically comes with a monitor who ensures the district sticks to cuts, savings, and repayment. The law’s “why” is here.
What would change, day to day, if Montclair gets a monitor?
Expect tighter gatekeeping on spending, hiring, and contracts, and faster decisions when the state believes the board is dragging its feet. Monitors can restructure budgets mid-year, renegotiate or reject contracts, and direct the district to implement cost-containment (transportation, staffing levels, programs with low utilization, etc.). Oversight isn’t new money; it’s a way of redistributing what’s already on the books to get back to balance. That’s why districts under monitors often see program trims even as taxes nudge up.
What it looked like next door: Nutley
In May 2024, the NJDOE appointed State Monitor Jeanette Makus in Nutley after a $7 million shortfall; the monitor assumed fiscal control and quickly began attending meetings, directing spending, and, in at least one instance, overriding a board vote as not in the students’ best interests. Read the district’s notice here, and regional reporting from NorthJersey.com and TAPinto.
As we discussed on the podcast, Nutley’s experience is the cautionary-and-comforting tale at once: books got stabilized, but the mood stayed raw as staff and extracurriculars were pared back.
Other New Jersey examples (and what they tell us)
- Lakewood: a long-running fiscal emergency has drawn multiple state monitors, including plans to add more in 2025; monitors there have been paid hourly (press reports cite ~$125/hour) and, in some cases, up to $400,000/year depending on scope and caseload. Please take a look at Asbury Park Press coverage here and here.
- Asbury Park: the district has operated under a state monitor for years; recent local reporting notes monitors regularly overruling the board as they pursue sustainable budgets. Background via NJEducation Report here and here; board documents list the State Monitor’s Report as a standing item.
The through-line: monitors prioritize solvency over sentiment fast, sometimes blunt fixes that can help districts recover, but also fray trust if community priorities aren’t centered.
So…what would a monitor likely do in Montclair?
Based on statute, state practice, and nearby cases, expect a monitor to:
- Lock the budget to a corrective plan: require monthly cash-flow checks, pause new spending and vacancies unless essential, and force reprioritization toward mandated services.
- Scrutinize contracts & staffing: renegotiate or reject non-instructional contracts; consolidate functions; reduce overtime and stipends; review transportation, special-education out-of-district placements, and vendor lists.
- Sequence repayment if a state loan is taken, tying annual budgets to repayment milestones and keeping the district within the levy cap.
- Stay until stability is proven. There’s no fixed timeline in law; it’s performance-based.
And yes, as we said on-air, monitors are not free: costs are borne by the district. In Nutley, the annual salary for the state monitor is $150,000, per the school’s budget. The price may also be hourly, as seen in Lakewood).
What the Special election vote decides…and doesn’t
Voting “yes” on both questions would raise local dollars to pay down the old deficit and permanently increase the operating budget to cover the current shortfall—keeping control local but asking more of taxpayers. Voting “no” could push the district toward a state loan + monitor, trading local control for state-directed discipline.
Bottom line
A fiscal monitor is neither a magic wand nor a bogeyman. It’s a tool the state uses when the math (and audits) say the district needs guardrails. In Nutley, Lakewood, and Asbury Park, the monitor has led to faster decisions, deeper cuts, and, eventually, cleaner books.
For Montclair, the vote on December 9 is really a choice about who sets those guardrails and how we want to pay for them. If you need a refresher on the proposals and their impact on an average tax bill, you can start with our explainer and bring your questions to the mic. Montclair’s $20M school deficit, explained.
Have a perspective or firsthand experience from a district that had a monitor? Reply to this post or email us at hello@montclairpod.com—we’ll feature a range of voices in our follow-ups.
Image created with ChatGPT
