An agency report challenging media stories overlooks the charter schools’ compliance with federal tax and state business laws while revealing new out-of-state payments, on the watch of the now-HISD superintendent.
stating that controversial Houston ISD Superintendent Mike Miles and others associated with the Colorado-based nonprofit charter school network Third Future Schools and Third Future Schools-Texas committed no wrongdoing during the three years when $49 million in state and federal education dollars granted to TFS-Texas were managed by, transferred to, or extracted as fees by the Colorado nonprofit.story.
In its October investigation report, TEA stated, “There is no merit to the allegations contained in the media reports that state funds were being inappropriately diverted from public school students,” finding that all transfers and fees were appropriate under Texas law. The report also stated that TFS-Texas was not required, under state law, to disclose its arrangements with TFS in the applications filed with the state.
Kobersky declined to answer detailed questions related to the investigation, providing the following written statement via email instead: “The final investigative report and associated exhibits … very clearly lay out the scope and nature of the investigation. Please refer back to those materials. The investigation is closed. TEA has no additional comment.” In an additional comment, Kobersky accused thespecific questions for this story.
TFS-Texas’ tax preparer and internal auditor, Richard Brozewicz, did not respond to questions about the IRS Form 990s. for the Colorado entity. Those documents still list Miles as a signatory but none of the nonprofits’ current board members, as listed on theirsent to Miles, stating, “The superintendent is no longer involved in any way with Third Future Schools’ finances or operations.” said that while federal law does not require that board members be signatories on bank accounts, it is “not best practice” when a nonprofit board lacks signatories.
Patty Quinzi is director of public affairs and legislative counsel with the Texas-American Federation of Teachers, which is now calling for changes to the charter school law based in part on the TEA’s findings.
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