If you get a chance, take a look at the USA Today HS basketball ranking. You'll find ST Anthony's of Jersey #1 and St. Benedict's of Newark #2. St A's has been coached by Bobby Hurley for 30 years and is nationally ranked annually. St'B's is now coached by Bobby Hurley Jr (yup, son) who was an all-american at Duke and played in the NBA. Both schools have significant endowments to grant full scholarships for BBallers. Where Pops attracts the best talent out of Jersey City, sonny boy is picking it out of Newark and Essex County.
Look further down the list and you'll find St Patricks of Elizabeth NJ. Same deal, sucking the talent out of Union County.
It has really hurt the local schools and that is where the argument has arisen. On the flip side, these schools work with these kids on getting them educated, more than just academically eligible. For some, as Spider points out, there is a huge social benefit.