The state could (I don’t know what they will do) then place those children (who want public school) in outside districts and pay those districts directly, subtracting that amount from any funds the state normally pays to the district itself. Certainly reasonable if the number of public school children within the district drops (which has to be expected).
I don’t know if you’re correct that they could do that, but assuming they can and did, are you suggesting they will place the entire public student body of Lakewood (or East Ramapo) in outside school districts, thus leaving the town with no more public school? I don’t know that would even be logistically practical to do, but even if it were – and were done – at that point the town no longer has any public schools so they can lower taxes to cover only special ed and busing and everyone lives happily ever after. 🙂
OTOH, what you suggest will cost the State far more since the State will have to pay the full cost of placing the students in out-of-district schools while the State currently does not pay the full cost to cover the public school students in school. (Local taxes cover most.)