CALIFORNIA – A school board overseeing Highlands Community Charter and Technical Schools resigned after a state audit found the charter school received $180 million in K-12 funds it was not eligible for and engaged in wasteful spending.

The California State Auditor conducted the audit of Highlands in Sacramento and found questionable financial transactions, some violating laws against public gift-giving and conflicts of interest.

At a July 7 special meeting, the board voted to remove Sonja Cameron, whose daughter was hired for a $145,860 leadership role despite lacking basic qualifications – including a bachelor’s degree.

After that vote, the six remaining board members each announced their resignations.

“I asked for these resignations because I believe Highlands’ future depends on a clean break from past governance failures,” said Highlands Community Charter and Technical Schools CEO Jonathan Raymond.

Didn’t meet classroom based program requirements

Highlands claimed it was running a classroom based program, which requires that 80% of the offered instructional time occur at the school site. The state found that Highlands typically only provided classroom based instruction for 2-3 hours of a scheduled six-hour day.

Auditors also observed during eight class visits, students entered and left class at various times – in some cases leaving immediately after signing in for attendance. Teachers did not attempt to enforce any attendance requirement.

Highlands was never approved for nonclassroom based instruction or online learning.

Because Highlands failed to qualify under either mode of instruction, the state concluded it should not have received any K-12 funding – totaling more than $177 million over two years.

Staff spent $80,000 on a Maui conference with no educational purpose

The audit found Highlands misused public funds including spending $80,000 on a Maui conference for staff that served no educational purpose. Funds covered seven days of lodging and attendance for eight people.

In addition, a director-level employee arranged a $1,500 per-month contract for his spouse’s mentoring services. 

They also spent $8,750 on holiday blankets for students from a company owned by a director’s spouse. Highlands spent a total of $397,960 with this vendor from fiscal years 2019–20 through 2023–24. 

Other questionable purchases included sponsorships of athletic programs, chambers of commerce foundations, and political organizations.

The state also found that Highlands’ policy permits relatives to hire each other, risking favoritism; 11 employees had relatives hired during their time.

Highlands had large class sizes

Auditors reported that 27 of the 30 Highlands teachers reviewed did not have the appropriate credentials for the classes they taught. Five teachers did not hold any valid teaching credentials.

Highlands also had a student-to-teacher ratio of 51:1 in 2023-24, more than double the highest ratio of nearby schools (22:1). This is above the typical maximum class sizes (34-37 students). 

State law sets class size limits only up to the 8th grade, with no standard for grades 9-12 or charter schools, but Highlands’ ratio greatly exceeds local norms, according to the state.

Should have to pay the money back

The California Department of Education has asked Highlands repay over $180 million that it “inappropriately” received.

Assembly Education Committee chair Al Muratsuchi said Highlands’ operators wrongfully took taxpayer funds.

“So, it’s only right they have to pay that money back,” said Muratsuchi.