برچسب: taxpayers

  • Taxpayers deserve better performance audits of school construction bonds

    Taxpayers deserve better performance audits of school construction bonds


    Photo: Carol Davis/Flickr

    California public school and community college district voters approved $20 billion of construction loans in 2022, with more passing in 2023, using the Proposition 39 financing capability.  The California Association of Bond Oversight Committees (CABOC) estimates that a total of $197.8 billion of this type of construction loan now exists.

    Proposition 39 made it easier to pass bond measures, but it also created a new emphasis on vigorous taxpayer oversight of construction expenditures. Indeed, when Proposition 39 was presented to the voters, the Legislature created a quid pro quo scenario, reducing the bond approval level to 55% from two-thirds, but requiring extensive taxpayer oversight and public visibility.  

    This oversight includes a performance audit that “… shall be conducted in accordance with the Government Auditing Standards issued by the Comptroller General of the United States for financial and performance audits.”   Education code section 15286

    When a standards-compliant performance audit is not present, however, laws can be broken, crimes committed, and voters are left to conclude that their tax money is not being spent wisely.  A search engine’s worth of indictments, allegations and plea deals are discoverable on the internet, relating to school districts and construction. This is in addition to the traditional occurrence of excessive change orders, cost overruns and delivery delays.

    For instance, the state’s Fiscal Crisis and Management Assistance Team (FCMAT) uncovered evidence of fraud, misappropriation or other illegal activities in 65% of the “extraordinary audits” it conducted between 2018 and 2023. While not all construction related, these cases were referred to law enforcement authorities. 

    In Santa Barbara County, an assistant school district superintendent and three construction company executives were charged with 74 counts of misappropriation of public monies, embezzlement of public funds, diversion of construction funds and grand theft. In San Francisco, a former school district facilities manager overseeing a district construction account pleaded guilty to fraud and tax evasion in an alleged scheme to divert $500,000 out of a construction escrow account.

    But the greater mystery may be when there is no oversight performance audit and wrong-doing goes unexamined.

    A statewide compliance survey released in October 2022 revealed that performance audits produced by most school districts fail to sufficiently comply with the required standards, according to a common sense, reasonable evaluation. Missing and non-standards-compliant performance audits deprive the public and those overseeing construction bond programs of valuable information that could be used to meaningfully evaluate the expenditure of hundreds of millions of dollars of public funds. 

    Many performance audits are just over two-pages in length, and include a single compliance audit objective. They typically fail to audit or provide information on program effectiveness and results, internal control or any prospective analysis of the construction program, which is usually the largest construction program ever undertaken by a school district.

    The comptroller general’s government auditing standards manual describes how government officials, such as school districts, should use a performance audit to assure the public that its money is well-spent. These standards describe the categories of audit objectives: program effectiveness and results; internal control; compliance; and prospective analysis. It also lists 32 examples of audit objectives, illustrating each of the four categories. This information provides objective analysis, findings and conclusions in order to improve program performance and operations, reduce costs and increase public accountability.

    School and community college districts engaging firms to produce the Proposition 39 performance audits should include audit objectives from a broad array of audit categories, so that the public truly understands the expenditure of billions of dollars of taxpayer funds.

    And taxpayers should carefully review the Proposition 39 construction bond program documents of their school and community college districts, including the performance audit, which are required by law to be posted on district websites.

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    Bryan Scott serves on two citizens’ bond oversight committees in Brentwood, and in 2023 he was named the Member of the Year by the California Association of Bond Oversight Committees.  He is the creator of “Becoming an Effective Watchdog: A Necessary Primer for California School Construction Bond Oversight.”

    The opinions expressed in this commentary represent those of the author. If you would like to submit a commentary, please review our guidelines and contact us.





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  • State aid for religious schools? Bad idea for faiths and taxpayers

    State aid for religious schools? Bad idea for faiths and taxpayers


    U.S. Supreme Court building in Washington, D.C.

    Credit: Stephen Talas / Unsplash

    Your tax dollars could soon lift a rainbow of religious educators — from Christian academies to pro-Palestinian classrooms — as the U.S. Supreme Court teeters on forcing states to aid sectarian schools.

    In oral arguments last month, the high court’s conservatives voiced eagerness to reverse an Oklahoma ruling that blocked public funding for a virtual charter school infused with Catholic teachings, an online scheme designed by the Tulsa diocese.

    Oklahoma’s far-from-woke Supreme Court agreed with the state attorney general in Drummond v. Oklahoma Statewide Virtual Charter School Board that taxpayer funding for religious web-based classes would violate America’s sacred separation of church and state. This key element of our Constitution insulates all faiths from state intrusion, while vesting shared civic duties, like education, within a tolerant and secular government.

    But muddled logic ruled this day in the high court among jurists like Samuel Alito, a self-described “practical originalist,” long insisting that judges must abide by the Constitution’s original intent. Alito at one point attacked Oklahoma’s Republican attorney general, Gentner Drummond, claiming that he “reeks of hostility towards Islam.”

    This odd allegation stemmed from Drummond’s point that “while many Oklahomans undoubtedly support charter schools sponsored by various Christian faiths, the precedent … will compel approval of similar applications by all faiths.” Alito mangled the argument, alleging that Drummond is “motivated by hostility toward particular religions.”

    Alito dodged the bedrock question of whether taxpayer support of religion is permitted by the nation’s founding covenants. Instead, his tortured reasoning claimed that public programs cannot “discriminate” against religious schools.

    California hosts more charter schools than any other state. In districts like Los Angeles Unified, one-fifth of all students attend a charter school, which did help lift student achievement for two decades before the pandemic. Still, Alito is not alone in negotiating the shifting ideologies and ironic surprises that mark the charter school movement.

    These publicly funded but independently run campuses were first authorized by Minnesota’s Legislature in 1991, founded on the rather Christian yearning for fairness, allowing poor families to escape mediocre public schools and shop for effective teachers. California’s charter law, approved one year later, emphasized how these small hot-houses of innovation would hurry reform of regular public schools.

    But few advocates foresaw how the rapid spread of charters would drive religious schools into the ground. Why pay even modest tuition for parochial school when a free charter has opened nearby? Enrollment in Catholic schools has fallen by one-third nationwide since the advent of charter schools; more than one thousand campuses have closed. Small Christian schools have taken a hit as well, with nearly one hundred shuttered in Los Angeles alone.

    So, the pushback by religious educators is understandable, with some (not all) sects eager to tap into public funding. If the Supreme Court now rules that states must subsidize faith-filled charter schools, Alito could realize his apparent wish for more Catholic or Confucian schools.

    But do spiritual leaders desire a messy entanglement with government? States typically require local school boards, when chartering independent educators, to ensure safe buildings, enforce shared curricular goals, and demonstrate that schools elevate student learning. Conservative jurists may well invite the state to squash evangelical charters that exclude Jewish kids, or protect the errant Presbyterian pupil who refuses to chant from the Quran.

    The high court has already permitted limited public financing of religious schools. This includes taxpayer-financed vouchers in select states that help parents pay tuition for sectarian schools, along with tax credits that mostly benefit affluent families enrolling children in private schools. (Los Angeles Unified recently settled with the Catholic archdiocese, reimbursing the church $3 million to cover Title I services required by related court decisions.)

    But these earlier rulings “involved fairly discrete state involvement,” Chief Justice John Roberts said during oral arguments, while warning that Oklahoma’s potential oversight of religious schools “does strike me as much more comprehensive involvement.” His vote will likely decide whether public dollars flow to religious schools.

    Perhaps it’s reassuring that right-wing judges like Alito remain so protective of religious liberty, sniffing out unlikely opponents of Islam or the Vatican. But telling states and taxpayers we must subsidize sectarian schools, then inviting government inside churches, synagogues and mosques, will only fracture the once common cause of public schools. 

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    Bruce Fuller is an emeritus professor of education and public policy at UC Berkeley and author of “When Schools Work.”

    The opinions expressed in this commentary represent those of the author. EdSource welcomes commentaries representing diverse points of view. If you would like to submit a commentary, please review our guidelines and contact us.





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