The problem is that that the student enrollment far exceeds the number of slots available in yeshivas in Lakewood. Yeshivas are relying on tuition rather than fundraising to meet their budget. Limiting the power that a donor can exert to get a student in and likewise, limiting future donations by that family and it’s close relatives to that yeshiva. This in turn limits the yeshiva’s ability to grow and increase their student body.
This is happening wherever the Jewish community is growing. Yeshivas need to be built and they need to be open to all Orthodox Jews not just one segment, and must be supported by the community. The problem is that you really can’t tax the community anymore. People are barely getting by. Relying on the rich donor is not a solution, as they want to donate for a classroom building etc… something you can put a plaque on not teacher payroll expense. I don’t have the solution perhaps you do.