From [HERE] NEWARK—The $144 million raised so far to help turn around Newark schools appears to be having a side effect—dividing the residents of this city into two camps: those who are excited about what the money can do and those who are suspicious of the donors' motives.

This week, nearly $1 million of the total was awarded to five new high schools, immediately sparking cries of unfairness from some city officials and residents, who said the move neglected older, failing schools.

"I know you're not supposed to look a gift horse in the mouth," said Councilwoman Mildred Crump at a public hearing Wednesday evening at City Hall. "Well I'm checking this one out." Residents in the audience applauded her sentiment. She added that she was "absolutely livid" to learn about the award from a newspaper, saying the donors "dismissed our existing schools."

Another council member complained that the plans for the money are secretive, and likened the process to the Tuskegee experiment, when black men in the South were unwittingly enrolled in a medical trial that left their syphilis untreated.

Upon hearing of the analogy, Mayor Cory Booker said in an interview: "That's unfortunate. This is ultimately about creating innovations and change in the city of Newark. It's unfortunate that the rhetoric is distracting from the reality."

That reality includes only 41% of students passing the English-language arts exam at grade level, Mr. Booker said, and 55% of students graduating in four years (with only 22% doing so by passing a state high school exit exam). Loud complainers aside, the mayor said, the "real silent majority are the people really yearning for educational options for their kids," which he said is evidenced by the tens of thousands of children on charter-school waiting lists.

He noted that the new schools were in the works even before the huge donations were made.

In September, Mr. Booker announced that Mark Zuckerberg, the founder of Facebook, had pledged $100 million—to be matched by another $100 million that Mr. Booker needs to raise—to help fix this school system of about 40,000 students. Mr. Booker has raised $44 million so far.

The schools have been under state control since 1995. Gov. Chris Christie, a Republican, and Mr. Booker, a Democrat, have been aligned in talking about what Newark needs to do with the money. Mr. Booker and others have led an outreach and informational effort in Newark that has included workshops, canvassing, and surveys of thousands of people to talk about the possibilities for the money and the ideas that already work in other parts of the country. A search is ongoing for a superintendent for the system.

A test comes this month, when voters will elect several members of the Newark school advisory board. Those who criticize the way Mr. Booker is handling the money back candidates that are also the favorites of the teacher's union. Union leaders fear that the money will lead to the privatization of the city's schools, since increasing the number of charter schools, which generally have nonunion teachers, is part of the plan to help fix the school system. Failing schools could also be closed, another threat to teacher jobs.

Ms. Crump joined a union rally and protest outside of City Hall Wednesday afternoon before the public hearing. She implored the protesters to vote for a certain slate of candidates on April 27. "We have a clear choice between those who will do nothing for labor and those who will do everything for labor," she said into the microphone. She told the protesters to vote for the three candidates who "are about labor." She then led people in a chant: "Jobs, jobs, jobs, jobs," and added: "Jobs that are safe and secure!"

Some fear that the backlash in Newark against the education money will jeopardize the investment in students that deep-pocketed philanthropists are making. "That's what I'm afraid of," said Robert Johnson, the dean of the New Jersey Medical School, who is one of dozens of community members involved in the plan to turn around the city's schools. "The people providing these funds can provide them to any city in the country."

Dr. Johnson said some of the negative thinking around the city is shortsighted. "When people get upset about something," he said, "they stop thinking rationally about an issue."