Atlantic City Public Schools Ends Decade of State Fiscal Monitoring, Regains Local Control

ATLANTIC CITY – The Atlantic City Public Schools District has emerged from the highest level of fiscal oversight after approximately 10 years with a state monitor embedded in the district.

Superintendent of Schools Dr. La'Quetta S. Small said the district's release from state fiscal monitoring reflects years of disciplined financial management, strong governance and a shared commitment to serving students.

"This is a significant milestone for the Atlantic City Public Schools and a testament to the dedication of our Board of Education, business office, administrators and staff, who worked tirelessly to strengthen our financial operations while keeping students at the center of every decision," Dr. Small said. "Emerging from state fiscal monitoring demonstrates that we have built sustainable systems, increased accountability and earned the confidence of the New Jersey Department of Education. While we celebrate this accomplishment, we remain committed to maintaining the highest standards of fiscal responsibility as we continue moving our district forward with purpose."

New Jersey Commissioner of Education Dr. Lily Laux wrote in a July 7, 2026, letter that the district is prepared to move forward without the increased level of scrutiny.

"Due to the significant financial improvement over time, commercial value stabilization aid to the district concluded at the end of FY26," Dr. Laux wrote. "To that end, the conditions warranting the initial appointment of the monitor have been resolved."

State Monitor Carol Morris, who was assigned to Atlantic City Public Schools, served her final day with the New Jersey Department of Education on Aug. 3, 2026. Morris said the district made significant progress during her tenure and is well-positioned to continue managing its financial affairs independently.

"The Atlantic City Public Schools has made tremendous progress in strengthening its financial practices, internal controls and overall fiscal stability," Morris said. "This achievement is the result of collaboration among district leadership, the Board of Education and staff who embraced the work necessary to build a stronger organization. I am confident the systems and procedures now in place will allow the district to continue operating responsibly while focusing its resources on supporting students and their success."

The Board of Education has hired Morris as the District Strategy Officer to continue its fiscal upward trajectory. Morris said the district's crowning achievements included improving financial management procedures, stabilizing leadership and seeing the Board of Education evolve into a cohesive governing body.

"You have to work for the students and the taxpayers," Morris said.

Before Morris assumed the role, the New Jersey Department of Education, under former Commissioner of Education David Hespe, appointed Dr. Gary McCartney as state monitor for Atlantic City. Hespe informed the district of the decision in a letter dated Feb. 19, 2015. At that time, Donna Haye served as superintendent of schools, and the district was facing a potential deficit following a substantial reduction in the municipal ratable base. The state required the district to prepare a comprehensive remedial plan. Although the district submitted the plan, the state determined that certain elements did not adequately address its concerns.

"The document, while addressing many topics, did not establish clear programmatic priorities and failed to describe how the district intends to remedy the potential cash flow concerns for the remainder of FY15," Hespe wrote in the letter.

The state monitor was tasked with:

• Improving the fiscal operations of the business office, including maintaining fiscal records for the general fund, federal programs and enterprise funds.
• Overseeing budget preparation and budget transfers.
• Reviewing internal control procedures throughout district operations.
• Ensuring the development and implementation of a corrective action plan to address the district's fiscal deficit.
• Overseeing all district staffing decisions, including the authority to hire, promote and terminate employees, as well as reviewing the terms of future collective bargaining agreements.
• Exercising the authority to override actions of the chief school administrator or votes of the Board of Education on matters involving the district's financial operations.

Then Business Administrator Celeste Ricketts worked diligently for more than 10 years to address financial issues and build sound fiscal protocols. She briefly retired in 2025, but has returned to the district as the interim business administrator. The district has made significant improvements since first being placed under state scrutiny, according to Dr. Laux.

The conclusion of state fiscal monitoring marks the culmination of years of financial reform and oversight, restoring full local control of the district's fiscal operations while recognizing its ability to independently maintain sound financial management and accountability.

Thanks for reading the whole story!

At Atlantic City Focus, we're committed to providing a platform where the diverse voices of our community can be heard, respected, and celebrated. As an independent online news platform, we rely on a unique mix of affordable advertising and the support of readers like you to continue delivering quality, community journalism that matters. Please support the businesses and organizations that support us by clicking on their ads. And by making a tax deductible donation today, you become a catalyst for change helping to amplify the authentic voices that might otherwise go unheard. And every contribution is greatly appreciated. Join us in making a difference—one uplifting story at a time!