$180 Million Vanishes—Entire School Board Resigns

Files labeled "Investigations" and "Fraud" in folder.

When $180 million goes missing, you can bet heads will roll, and that’s exactly what’s happening in Sacramento.

At a Glance

  • Entire school board resigns following a report of $180 million in fraudulent activities.
  • Audit reveals the school violated admissions criteria to inflate funding.
  • State demands repayment, potentially forcing the school to close.
  • The incident occurs in the heart of Sacramento’s Afghan migrant community.

Fraud Uncovered in Migrant Education

The entire board of a Sacramento-based English language school resigned after an audit uncovered $180 million in fraudulent activities. The school, which primarily served Afghan migrants, was found to have violated its charter by admitting ineligible students to increase state funding. This included enrolling students outside the approved age range and those already holding high school diplomas. The state audit, which brought these violations to light, has resulted in demands for the school to repay the funds, putting its future in jeopardy.

State officials conducted the audit after suspicions arose about the school’s rapid increase in enrollment numbers. The findings revealed deliberate actions to maximize funding through inflated attendance figures. The funding formula, based on average daily attendance, incentivized such practices. The school, which operated under a state charter, had strict criteria allowing only migrants aged 22 and older without high school diplomas. The violations were a clear breach of these regulations, leading to a public outcry for accountability.

Impact on the Migrant Community

The fallout from the audit and subsequent board resignation has placed the future of the school in doubt. Local activists warn that the demand for repayment could force the school to close, depriving hundreds of current and thousands of future students of essential educational opportunities. The school has been a cornerstone for Afghan migrants, particularly following the 2021 U.S. withdrawal from Afghanistan, offering vital English language acquisition and integration support.

The resignation leaves a leadership vacuum at a critical time. With the threat of closure looming, students and staff face uncertainty about the continuity of their education and employment. The situation has also heightened scrutiny of other migrant-serving organizations in the region, with concerns about similar fraudulent activities surfacing.

Calls for Accountability and Support

State officials are adamant that the misused funds must be repaid, emphasizing the need for legal compliance and fiscal responsibility. The $180 million fraud is one of the largest in the history of California’s charter school system, demanding rigorous oversight and accountability. However, community leaders and activists argue that strict enforcement of repayment could disproportionately harm the migrants relying on these services, calling for a balanced approach that ensures accountability without dismantling essential services.

The broader implications of this incident extend beyond Sacramento. It raises questions about the oversight of state-funded programs for vulnerable populations and the potential chilling effect on similar initiatives. The call for stronger governance and transparent processes is louder than ever, urging a reevaluation of how these educational services are administered and funded.

Looking Forward

The next steps for the school remain uncertain. Discussions on potential restructuring and changes in governance are underway to address the fraudulent practices and restore trust. The state may consider alternative solutions that hold the school accountable while preserving its vital educational mission. Nonetheless, the incident has sparked a broader political debate over the balance of accountability and community support for vulnerable populations.

Sources:

Breitbart

Kauser News Agency

World Relief