Editor's note, Part 7: In a nine-day series of stories, NJ Advance Media is taking a closer look at Lakewood, one of New Jersey's fastest-growing and most complex towns. Lakewood is home to a huge Orthodox Jewish community and the rapid growth has engulfed the town, igniting tensions between the religious and secular societies on many levels. Each day, we will explore some of the major issues in the community, including the welfare fraud investigation, housing problems and the strains on the education system.

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(NJ.com file photo)

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By Kelly Heyboer | NJ Advance Media for NJ.com

LAKEWOOD — Attorney Michael Inzelbuch walked into court in Atlantic City a few weeks ago with the family of his latest client.

She was a little girl from an Orthodox Jewish family preparing to begin pre-K in Lakewood's public school system. Her evaluation said she had a long list of challenges – Down syndrome, attention deficit hyperactivity disorder and physical problems, including a limp.

Lakewood's experts said the school district could educate her in the district's Early Childhood Center, located in a series of trailers. But Inzelbuch argued the public school couldn't accommodate the girl's disabilities.

In the end, the judge agreed. Lakewood taxpayers will foot a higher bill to pay for the girl's private school tuition at one of the specialized schools in town run by members of the Orthodox Jewish community.

"I got them what they deserved. Nothing more. Nothing less," said Inzelbuch, who has sued the Lakewood district more than 100 times on behalf of special ed students. "They deserve an appropriate education."

Lakewood expects to spend nearly $32 million on tuition this year to send special education students -- including hundreds of members of the growing Orthodox Jewish community -- to private and out-of-district schools. The bill is among the highest in the state and one of the reasons the booming Ocean County town is facing a school funding crisis.

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Lakewood School Board president Barry Iann speaks with board attorney Marc Zitomer after a July meeting where the board approved tuition payments to private schools for dozens of special education students. (Aristide Economopoulos | NJ Advance Media for NJ.com)

Why do taxpayers pay private school bills?

Under federal law, all children with disabilities are entitled to a "free appropriate public education." So, if a school district does not have the staff, programs or facilities to accommodate a child's specific disability, parents can request that the district pay for a more appropriate private school.

Many parents turn to lawyers and education consultants for help. Their cases often end up before a state Office of Administrative Law judge, who rules where a student should be placed.

In Lakewood, an estimated 361 current and new special education students will be placed in private schools at the district's expense during the upcoming school year, according to the school district's budget. Another 17 students will be sent to other school districts.

Lakewood sends more than a quarter of its special education students to private or out-of-district schools, according to the data.

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A student gets off a Lakewood school bus at a private yeshiva in town. (David Gard | For NJ Advance Media)

What makes Lakewood different from other towns?

Town officials argue Lakewood is among the most unusual – and cheated – school districts in New Jersey. The unprecedented influx of Orthodox Jews has made it the fastest growing town in New Jersey over the past 20 years.

Lakewood has more than 6,300 students registered in its public schools and another 30,000 mostly Orthodox Jewish students enrolled in the town's 130 private schools. Under state law, towns must fund buses for students attending private schools more than two miles from their houses.

In the upcoming school year, Lakewood expects to spend $27 million on busing alone, more than it spends on classroom instruction, according to the school budget.

Town leaders say Lakewood is severely underfunded by the state, which does not consider the busing of large numbers of private school students when calculating how much state aid the district receives. A permanent source of school funding for busing and special ed would ease many of the town's problems, said Rabbi Aaron Kotler, one of the leaders of the Orthodox Jewish community.

"It would also make Lakewood a place where you wouldn't have people feeling that your children's future is at risk due to a budget problem," Kotler said.

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(Stephen Stirling | NJ Advance Media for NJ.com)

How much does special ed tuition cost?

School board records show private school tuition can top $90,000 a year for the most severely disabled students in Lakewood. The school district also picks up the cost of nurses and aides, which can add another $28,000 or more a year for some students.

Last year, Lakewood spent $31.8 million on tuition for special ed students, among the highest in the state, according to state school spending data. Lakewood's bills were on par with Trenton, Passaic and other cities with much larger student populations.

Lakewood spends more per student on special education than nearly any other district of its size, according to state spending statistics. Homeowners said the costs are helping drive up their property taxes.

"It seems to be a disproportionate level of tuition," said Tom Gatti, head of the Senior Action Group, an activist group representing senior citizens in town.

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Lakewood has the highest birth rate in New Jersey and one of the highest birth rates in the world thanks to the influx of Orthodox Jewish families, who often have multiple children. (David Gard | For NJ Advance Media)

Why is the number of children classified as special ed growing in Lakewood?

The birth rate in Lakewood is among the highest in the world as more Orthodox families, which are known for having large numbers of children, move into town.

The Orthodox community is well educated about education law and often seeks out legal help to get disabled children placed into the best special education programs, said Inzelbuch, the town's most prominent attorney specializing in special education disputes.

The large number of state-approved private schools for disabled and special ed students has also attracted people to Lakewood, Inzelbuch said. He has gotten calls from families as far away as Los Angeles and Melbourne, Australia considering relocating.

"They say, 'I hear Lakewood has very good programs,'" Inzelbuch said. "We have families who are moving here."

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The School for Children with Hidden Intelligence, known as SCHI, is one of the largest private schools for special education students run by members of the Orthodox Jewish community in Lakeswood. (Aristide Economopoulos | NJ Advance Media for NJ.com)

Why has one of Lakewood's most prominent private schools been in the news?

Rabbi Osher Eisemann, the founder of one of Lakewood's largest private schools for special education students, was indicted earlier this year for allegedly stealing $630,000 in public money intended for disabled children.

Eisemann is accused of using student tuition paid to the School for Children with Hidden Intelligence, known as SCHI, to fund a clothing business he was running.

The rabbi denied any wrongdoing. "We look forward to the complete exoneration of both SCHI and Rabbi Eisemann in this investigation," Eisemann's attorney, Lee Vartan, said in a statement.

Lakewood continues to send special education students to SCHI, which has programs for Down syndrome, attention deficit hyperactivity disorder and other disabilities.

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Why has Lakewood ended up in court over questions about special education practices?

A former supervisor who oversaw special education funding for Lakewood schools filed a notice of her intent to sue the district earlier this year after she said she was suspended for raising questions about questionable spending.

Tobree Mostel said she told Lakewood's Board of Education last year that an unnamed third-party consultant was overbilling the district, rushing through student special ed evaluations and rewarding its employees for saying students needed special ed services.

Lakewood denied Mostel's allegations and school board attorney Marc Zitomer called her lawsuit "frivolous."

Other school district employees have filed similar lawsuits. Helen Tobia, Lakewood's veteran supervisor of pupil services, alleged she was fired after she refused a request to place a school board member's daughter in a private school and she objected to how special needs students were placed in private schools.

The state-appointed monitor overseeing Lakewood's schools said Tobia was fired for honoring the wishes of Orthodox families and rabbis who wanted Orthodox special ed students placed in Jewish private schools.

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Lakewood Schools Superintendent Laura Winters listens to a speaker during board meeting at the local high school in July. At the meeting, Winters said the special education department would undergo a "reorganization." (Aristide Economopoulos | NJ Advance Media for NJ.com)

What's happening with Lakewood's special education department?

At last month's school board meeting, the board added a last-minute item to the agenda eliminating the director of special services position, the head of the department overseeing the special education department.

Laura Winters, Lakewood's superintendent of schools, hinted that changes are coming to the department. But, she gave few details.

"There is going to be a reorganization of the special services department," Winters said, when resident questioned her during the public comment portion of the meeting. "There will be a supervisor of special services. There will be coverage in that department. Full coverage."

Winters did not return phone calls to comment further. Michael Azzara, the fiscal monitor appointed by the state to oversee Lakewood's finances, also did not return calls to comment.

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Lakewood Board of Education members (left to right) Moshe Bender, Moshe Raitzik and Ada Gonzalez hold signs at a recent school board meeting. (Russ DeSantis | For NJ Advance Media)

What's next in Lakewood?

Lakewood was able to avoid mass teacher layoffs and the elimination of its sports teams this year with the help of last-minute emergency funding from the town and the state. But, it remains to be seen how it will address anticipated future budget shortfalls without major changes.

Meanwhile, the school board voted in June to rehire Inzelbuch, the outspoken Orthodox Jewish attorney who has repeatedly sued the district on behalf of special education students wanting to attend private schools.

Inzelbuch, who previously served as the school board's attorney for a decade, said he would continue to represent children suing the district while he decided whether to take the job. If he takes the job, he will have to stop taking cases in which students sue the district.

In May, Inzelbuch paid for 10 buses to bring Lakewood students to Trenton to protest the lack of state funding for the district. Until Lakewood solves its money problems, little will change in the town, he said.

"There is a funding problem in Lakewood," Inzelbuch said. "Whoever doesn't see it is delusional."

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Staff writers Stephen Stirling, Len Melisurgo and Michael Sol Warren contributed to this report.

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Read more about Lakewood

A look at Lakewood: Inside N.J.'s most controversial town

Race, religion, corruption and politics: A guide to the crisis in Lakewood

A rare glimpse into the elite college that changed Lakewood forever

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Kelly Heyboer may be reached at kheyboer@njadvancemedia.com. Follow her on Twitter @KellyHeyboer. Find her at KellyHeyboerReporter on Facebook.