Progress, Problems Outlined in State-Run N.J. District

By Karen Diegmueller

Three years after New Jersey took control of the Paterson public schools, the district has shown substantial progress, though serious problems remain, according to an independent audit.

The evaluation, conducted by Arthur Andersen & Company, found that standardized-test scores in the 22,000-student district remain too low and that many of its school buildings are deteriorating.

It was the first independent audit of the district since state education officials replaced Paterson's administrators and school board with their own management team and a local...