School parents in Lakewood, NJ were taken by surprise on Monday morning when they were told that students participating in the district's summer programs, many of whom were enrolled in special education programs, should make "alternate plans." Administrators said that the state's budget for the new fiscal year, which started July 1, left the district with a $30 million funding shortfall that would force Lakewood's schools to shut down. Less than 12 hours later, the schools were back open after Gov. Phil Murphy's administration promised to loan the district $36 million dollars.

So why are the schools in New Jersey's fastest-growing municipality so cash-strapped that a district-wide shutdown is even a possibility?

Asbury Park Press reporter Stacey Barchenger said part of the answer has to do with Lakewood's unique situation. "There are 6,000 public schools, but more than 32,000 private school kids," she said. Many of those who go to private schools attend the town's many yeshivas. 

And the state obligates the school district to pay for services for private school students, like busing and security. "That's not taken into account when the district gets money through the state funding formula. That leads to an imbalance and a deficit that we have seen grow and grow each year."

Barchenger spoke to WNYC's Kerry Nolan.