There was long-form about this awhile back. Interestingly the blame for waste seemed to lay with both teacher's union and pro-reform consultants demanding a big piece of the action. When teacher's union didn't get what they wanted they manipulated the community of parents against the deal, which also ensured the politicians/bureaucrats would not be held accountable for the squandered opportunities and wasted money.

In short, it seems like places like Newark have bad schools because of bad governance and rent-seeking behavior running rampant at the local level. The state should be more firmly involved to police these issues.