Grant to Ohio raises questions over the federal Charter School Program’s grant making process

CPD report on fraud, waste and abuse in charter schools

Following an announcement that the U.S. Dept. of Education will give $157 million in taxpayer funds to charter schools, Kyle Serrette, director of education at the Center for Popular Democracy, released the following statement:

“As our 2015 national report on the charter school fraud demonstrates, there are regulatory shortcomings that foster fraud, waste and abuse in charter schools. It is alarming that Ohio is the largest grantee. One would think that the sheer volume of fraud, waste, and mismanagement that has been documented in the state would have disqualified them from receiving this federal windfall.  Our research has documented over $15 million in fraud, waste, or mismanagement, which means that thousands of children are being robbed of a quality education. Giving the Ohio charter schools $71 million makes no sense. 

Some cases of Ohio fraud, waste, and mismanagement include:

• Auditor Investigation: In January 2015, the state auditor released a report of the results of unannounced visits by inspectors to 30 charter schools. In nearly half of the schools, the school-provided headcount was significantly higher than the auditors’ headcount.
• Greater Achievement Community Charter School: An Ohio state audit found that administrators at the Greater Achievement Community Charter School egregiously mismanaged public funds, sometimes using money for personal expenses. Between 2003 and 2010, the auditors found that Greater Achievement developer Elijah Scott diverted over $46,000 of public funds into his personal account. The school’s financial records could not adequately account for excessive cash withdrawals from ATMs and other sources and the school overall was found to have misspent at least $570,000. Source: http://www.cleveland.com/metro/index. ssf/2012/03/audit_finds_more_than_570000_i.html
• Cincinnati College Preparatory Academy Charter School: After receiving an anonymous tip, the Ohio Auditor of State’s office investigated the Cincinnati College Preparatory Academy Charter School and found that administrators stole at least $148,000 of taxpayer money. Superintendent Dr. Lisa Hamm and school treasurer Stephanie Millard were indicted in March of 2013 on multiple criminal charges. The two are alleged to have used school funds to pay for things such as sightseeing tours through Europe, a $20,000 tour of California, and a Chicago trip to a Tina Turner concert, all under the guise of visiting schools to identify best practices or for professional development. Source: http://www.wcpo.com/news/local-news/charterschool-officials-to-appear-in-court-for-allegedly-spending- 148k-in-school-funds

Many more instances of Ohio fraud, waste, and abuse can be found in our report.

Recently U.S. Sen. Sherrod Brown blasted

Ohio's charter school system for having rampant waste and fraud. In a statement he said, "We want to make sure these charter schools effectively educate children," "Right now they're not.”

“It’s time to fix our broken charter oversight system. Sending millions of more dollars to states with broken charter schools laws will only exacerbate the fraud problem.” said Serrette

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The Center for Popular Democracy promotes equity, opportunity, and a dynamic democracy in partnership with innovative base-building organizations, organizing networks and alliances, and progressive unions across the country. CPD builds the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial justice agenda.