Several months ago, Texas journalists reported that millions of dollars were transferred from charter school accounts in Texas to charter school accounts in Colorado. Their stories said that Houston superintendent Mike Miles was bolstering the finances of one of his Colorado charter schools.
Miles was appointed as superintendent of the Houston Independent School District as part of a hostile state takeover of HISD. State Commissioner of Education Mike Morath was installed by Governor Greg Abbott, and Morath imposed Miles on HISD.
When Miles came under fire for financial irregularities, the state investigated. Who is the state? Mike Morath, the same guy who appointed Miles.
Guess what? The state report cleared Mikes.
Are you surprised?
The Texas Tribune reported today:
The Texas Education Agency has cleared acting Houston school district Superintendent Mike Miles of wrongdoing after he was accused of improperly diverting millions of dollars in state funds to his Colorado charter school system.
After reporting from Spectrum News and The Texas Observer prompted calls for an investigation earlier this year, the education agency concluded on Tuesday that neither Miles — who the agency picked to lead the state’s largest school district last year — nor his charter school network, Third Future Schools, “violated any applicable Texas laws,” according to the 29-page investigation report.
The investigation found, in part, that checks directed from a partnering Texas school district to Third Future Schools’ Colorado address went there because the Colorado location handles accounting services for the network’s Texas branch, which is run independently. But, the checks were eventually deposited in the Texas branch’s bank account.
“Based on the evidence obtained and analyzed during the investigation, there is no merit to the allegations contained in the media reports that state funds were being inappropriately diverted from public school students in Texas,” the report notes.
The agency is closing the investigation, and “no further action will be taken” at this time, the report says.
In an email sent to the Houston school district community on Tuesday, Miles called the earlier reporting “a baseless distraction and an attempt to undermine and discredit the good work happening” in the schools.
“Now we can do what we always do and move forward on behalf of our students,” Miles said.
Earlier this year, Spectrum News reported that the Texas branch of Third Future Schools — which receives funding from multiple Texas school districts to run campuses in the state — was potentially using public funds from its school in Odessa to offset financial losses at a sister school in Colorado.
The Texas Observer later reported that it had identified “additional irregularities” related to the disclosure of expenses by the charter network.
Miles denied wrongdoing and accused the previous reporting of mischaracterizing “common place financial arrangements between charter schools and the charter management organizations that support them” and welcomed an investigation into the network’s activities.
The state’s investigators agreed with Miles, saying they found no evidence that Texas school districts deposited funds into the bank account of Third Future Schools in Colorado. Third Future Schools-Texas reimburses the Colorado location for administrative services it provides to all of the charter network, the report says.

The public needs to understand that there is a financial exchange between charter school contractors and their management groups, the details of which are kept from public scrutiny. There are opportunities for deceptive and deceitful arrangements including sweeps contracts. Private companies are under no financial obligation to do what is best for the public interest. When public funds are sent to private contractors, those tax dollars often become unaccountable private dollars. Money can be used for a variety of purposes including shipping it overseas. There are lots of opportunities for waste and fraud in charter school finance, but it also difficult to prove without being able to track or control the funds.
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And then once the “investigation” was over and Mr. Morath was AGAIN looking the other way. The big bucks from the Texas Branch slipped right back into Colorado coffers. Absolutely outrageous that Mobster Mike Miles and his henchmen are running this off the books operation while field-stripping, crippling and systematically dismantling Houston’s HISD.
The Rape Of Nanjing Texas Style.
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Texas is under the rule of the Abbott & Gestapo gang.
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