Investigators found educators in 11 schools who admitted to extensive cheating during the 2009 administration of the Criterion-Referenced Competency Tests.
The eight-year-old district is seen as being on the cutting edge of education reform, but has also faced some challenges.
John Covington, who will oversee a district of low-performing schools in the state, says that the current education system is "outdated."
The state took over three New Jersey districts more than a decade ago, but observers on the ground say the results have been mixed.
John White, who has lead the Recovery School District since the spring, could be moving into the position vacated earlier this year by Paul Pastorek.
Atlanta, roiled by a state test cheating scandal earlier this year, was among the districts showing improved performance.
Stakeholders in the district are still divided on a governance plan for the district, slated to lose its accreditation Jan. 1.
"School Budget Hold 'Em," a free resource, balances budget cuts with strategic investments.
Chicago is investing $20 million in the effort to improve the schools, which enroll about 5,800 students.
The $96 million will be used to erase the district's debt, pay for early childhood classes and principal training, among other programs.