Brett Shipp of Spectrum News posted a video asserting that the Texas charter schools in the network founded by Mike Miles sent millions of dollars to Miles’ Colorado charter schools. His report was amply documented.

Miles was imposed as superintendent of the Houston Independent School District after the state took control of HISD, based on the low performance of ONE school, Wheatley High School. Miles was selected by State Superintendent Mike Morath, who served on the Dallas school board when Miles was superintendent for three years and failed to meet any of his lofty goals. Neither Morath nor Miles is an educator. Morath was in the software business, and Miles was in the military before joining Eli Broad’s Superintendent Academy, which emphasized top-down management and disruption.

Ana Hernandez, a Houston legislator, wrote Mike Morath to call for an investigation of Miles. Morath is unlikely to conduct a serious probe since he chose Miles. The State Attorney General Ken Paxton is under indictment for corruption, so he’s not likely to dig deep into Morath’s choice; Morath was picked by Governor Gregg Abbott.

Sam Gonzalez Kelly of The Houston Chronicle reported that Miles denounced Shipp’s charges:

HISD’s appointed Superintendent Mike Miles is vehemently denying reports that his former charter network, Third Future Schools, illegally used money from its Texas campuses to subsidize its schools in Colorado. 

Miles, in a late night email to “friends, partners and board members,” wrote that the story by Spectrum News in Dallas “badly misunderstands, or worse, intentionally misrepresents the financial practices of Third Future Schools.” The story, by reporter Brett Shipp, who covered Miles during his tenure as Dallas ISD superintendent, accuses Third Future Schools of charging fees to its Texas network to subsidize one of its campuses in Colorado, and reported that Third Future Schools Texas had run a deficit due to debts to “other TFS network schools and to TFS corporate.”

The Spectrum report cites recordings of TFS corporate board and investor meetings, as well as the charter network’s financial records. The Houston Chronicle’s review of the documents confirmed that TFS Texas had sent funds to Colorado campuses, which a charter school finance expert said is generally permitted by state law.

“While I have not worked at the Third Future Schools network for more than a year, I find the piece irresponsibly inaccurate, and I cannot let this kind of misinformation go uncorrected,” Miles wrote. 

Miles wrote that Third Future Schools “was always a responsible steward of every public dollar received” and that school finances were approved by local school boards and partner districts. He acknowledged that Texas schools paid “administrative fees” to the central Third Future office, which is headquartered in Colorado, to provide network-wide supports in areas, including finance and human resources, but said that such payments are common practice for charter networks.

“Spectrum News either intentionally or, through gross incompetence, mischaracterized these common place financial arrangements between charter schools and the charter management organizations that support them,” Miles wrote. 

Neither Spectrum nor Shipp immediately responded to requests for comment. 

Spectrum’s story immediately prompted outrage among HISD community members and some elected officials, who are demanding the superintendent’s resignation and a federal investigation over the charter network’s use of Texas taxpayer money in Colorado schools. 

The Texas Education Agency said in a statement Tuesday that it was aware of Spectrum’s report and was reviewing the matter.

The “charter school finance expert” consulted by The Houston Chronicle worked for the state charter school association. It is not clear that state law allows charter schools in Texas to send Texas public funds to its offices or other charters in Colorado.