LAUSD Superintendent Alberto Carvalho, California Govenor Gavin Newsom and LAUSD Boar Member Nick Melvoin

WHAT IS GOING ON

LAUSD Superintendent Alberto Carvalho faces mounting allegations of financial misconduct while the district deals with possible federal funding cuts.

Our thorough investigation uncovered concerning trends of suspected fraud and mismanagement within the district. An analysis of attendance records raised red flags, indicating that an alarming 85% of the 142 middle schools in the district reported 100% attendance on a specific day. The financial implications are substantial, with over $764,000 of taxpayer funds now subject to scrutiny due to 43 schools claiming flawless attendance records for 6,884 students who had already completed their studies.

In another instance, a lawsuit alleges that Carvalho's mismanagement of $77 million in Proposition 28 arts education funds resulted in a failure to hire new teachers as mandated by law. Eight student families have initiated legal proceedings due to LAUSD Superintendent Alberto Carvalho's alleged actions that are claimed to have defrauded California taxpayers and the students of the Los Angeles Unified School District. These decisions have had a substantial impact on the district's ability to provide art programs, raising concerns about the allocation and utilization of public funds designated for educational purposes.

These allegations come to light at a critical juncture when the Department of Education reveals plans for workforce reductions. This decision has the potential to jeopardize more than $750 million in federal funding allocated for vital student programs within LAUSD.

WHY IT MATTERS

Department of Education Cuts Threaten LAUSD's $750 Million Federal Funding

"We fundamentally oppose any and all federal cuts that negatively impact the students of Los Angeles Unified School District." — Sherlett Hendy Newbill, Board Member, Los Angeles Unified School District

The recent action taken by the U.S. Department of Education to cut more than 1,300 positions has sparked significant apprehension regarding the stability of federal funding for the Los Angeles Unified School District (LAUSD). Specifically, the Department's initial declaration of revoking $600 million in grants designated for teacher training [2] hints at potential interruptions in essential educational initiatives and services.

Superintendent Alberto Carvalho emphasized the significant impact of federal funding on the Los Angeles Unified School District (LAUSD), highlighting that the district receives approximately $750 million in federal funds specifically allocated for various crucial programs. These funds are earmarked to support disadvantaged students, including those from low-income families, English language learners, and students with disabilities. Additionally, the federal money is designated to ensure uninterrupted access to technology for students and to provide essential services such as breakfast and lunch programs.

The Board of Education at LAUSD demonstrated a unified front in opposing potential cuts to federal funding, recognizing the detrimental effects such actions would have on the most vulnerable students within the district. Board Member Kelly Gonez expressed concerns about the possible repercussions of reducing funding for school meals, MediCal, and education block grants, underscoring the critical role these programs play in supporting students' well-being and academic success.

It is noteworthy that California's K-12 schools currently rely on approximately $8 billion in federal funding, constituting about 6% of the total K-12 funding in the state. This federal financial support is particularly vital for certain districts where it represents a more substantial portion of their budgets, thereby disproportionately impacting programs aimed at serving underserved communities.

The financial challenges facing the LAUSD are exacerbated by projections indicating that the district's unassigned ending balance of $800 million is projected to be depleted by the 2026-27 fiscal year. While senior officials assure that student services will remain intact, reports from principals indicate reductions in non-teaching positions and adjustments to worker hours that fall below the threshold required to qualify for health benefits.

Elizabeth Sanders from the California Department of Education emphasized that any alterations to federal education funds would necessitate congressional action rather than executive orders. The potential cuts to federal funding could have far-reaching consequences, particularly affecting vulnerable community members, especially children who rely on school meal programs.

These budgetary changes pose a significant threat to programs that support first-generation college students, low-income families, students with disabilities, and rural schools that rely on federal initiatives to provide essential services and educational opportunities.

Board Vice President Dr. Rocío Rivas didn't mince words: "Cutting federal funding threatens the futures of our most vulnerable students" . Board Member Karla Griego stressed that stopping these funds will hurt LAUSD's most vulnerable students - those with disabilities, low income, and English Learners.

Allegations of Misuse of Millions of Taxpayer Dollars by LAUSD Superintendent Alberto Carvalho Resurface.

Former LAUSD Superintendent has Austin Beutner sued the Alberto Carvalho and the district over misuse of $76.70 million in taxpayer money meant for arts education [6]. The lawsuit names both LAUSD and Superintendent Alberto Carvalho for breaking Proposition 28 rules systematically [7].

Former LAUSD Superintendent, Austin Beutner, has filed a lawsuit against Alberto Carvalho and the district, alleging the misappropriation of $76.70 million designated for arts education by taxpayers [6]. The legal action specifically implicates LAUSD and Superintendent Alberto Carvalho for the systematic violation of Proposition 28 regulations.

LAUSD Superintendent Alberto Carvalho Misuses Arts Education Funds Allegedly Used for Existing Staff

A memo dated August 2024 revealed that the Los Angeles Unified School District (LAUSD) allocated funds from Proposition 28 to pay 167 out of the 227 elementary arts teachers in the 2023-24 academic year . The lawsuit specifically identifies 37 elementary schools that, despite receiving additional Proposition 28 funding, either maintained the same level of arts education funding or reduced it. Legal documents further allege that LAUSD failed to meet the mandated expansion of arts programs, opting instead to decrease existing funding and substitute it with Proposition 28 money.

Unions Join Forces with Parents to Challenge LAUSD Leadership

Major labor groups, such as United Teachers Los Angeles (UTLA), Service Employees International Union Local 99, and Teamsters Local 572, have thrown their support behind the lawsuit [6]. UTLA's President, Cecily Myart-Cruz, expressed her frustration, stating, "I am exasperated by this kind of shell game that we're playing with voters' money". Vicky Martinez, an advocate for Proposition 28, decided to become a plaintiff in the case after discovering a lack of tangible improvements in arts education within her children's schools. Martinez emphasized her disappointment, saying, "There are no additional arts or theater or music teachers. My youngest, who's in middle school, doesn't have any arts whatsoever" . The involvement of these individuals and organizations underscores the widespread concern and dissatisfaction regarding the allocation and utilization of public funds for education.

Disproportionate Impact on Black and Latino Students Alleged

Most schools that failed to properly use Proposition 28 funds are predominantly located in low-income areas, exacerbating the negative impact on Black and Latino students. An anecdote shared by a 15-year-old student at Franklin High School sheds light on the lack of art classes available to students, not only at Franklin but also at her previous school within the Los Angeles Unified School District (LAUSD). Despite persistent inquiries over the past year, LAUSD has been reluctant to disclose crucial budgetary information that would provide transparency on how funds allocated for arts education were utilized. The district's defense hinges on the assertion that their expenditure on arts programs exceeded the minimum requirement set by Proposition 28, justifying their actions as compliant with the law. However, Beutner, the architect of the proposition, contends that the legislation mandates each school to independently enhance its arts offerings. Allegations in a lawsuit suggest that LAUSD misrepresented information to the state of California regarding the utilization of Proposition 28 funds. Recognized advocacy group Arts for LA underscores the pressing need for accountability as the primary obstacle in the effective implementation of the proposition. To address this challenge, experts recommend the establishment of an impartial oversight committee comprising administrators, educators, families, and community stakeholders to ensure the appropriate allocation of arts education funds. The ongoing investigation into Attendance Record Fraud further underscores the need for transparency and accountability in educational funding allocation.

LAUSD Superintendent Alberto Carvalho's Widespread Pattern

A teacher turned whistleblower has exposed widespread attendance fraud throughout Los Angeles Unified School District. This revelation raises major concerns about financial controls under Superintendent Alberto Carvalho's leadership.

A teacher who decided to blow the whistle on a concerning issue has brought to light a widespread attendance fraud scandal within the Los Angeles Unified School District. This revelation has sparked significant worries regarding the effectiveness of financial controls during Superintendent Alberto Carvalho's tenure. The teacher, Dan Chang, made a startling discovery when he noticed an unusual pattern of 100% attendance post-graduation in his classroom, which raised red flags . Despite marking his students as absent, he was unexpectedly instructed by administrators to change their status to present. Furthermore, Chang found out that his attendance records had been altered without his consent [4]. Principal Cheryl Bloom's email defending this questionable practice by stating, "This is how the district deals with the Culmination," only added to the controversy .

The situation at the school worsened as it was revealed that the institution had a staggering "chronic absenteeism" rate of 35%, surpassing the averages at the district, county, and state levels. An extensive eight-month investigation uncovered a shocking statistic: a whopping 85% of LAUSD's 142 middle schools reported flawless attendance on a single day. The suspicion deepened as it was discovered that 43 schools claimed that 6,884 students miraculously returned to class immediately after graduation. Even more perplexing was the data from Daniel Pearl High School, which indicated an implausible scenario of not a single senior being absent after graduation. State education authorities were quick to emphasize that marking absent students as present was a violation of regulations, regardless of the circumstances.

Tax Dollars at Stake: The $764,000 Question

Tax Dollars at Stake: The $764,000 Question California allocates approximately $111 per student daily to schools, totaling $764,000 at risk. An illustrative case is Madison Middle School, where the questionable reporting for 462 eighth-graders resulted in a staggering $51,282 loss to taxpayers in just one day. The financial implications are significant, with the potential for a single day of attendance fraud to drain $764,000 of tax money [9], and annual costs could soar to $1 million. Notably, various schools exhibited similar suspicious attendance patterns, indicating a broader issue .

In response to these concerns, Chang raised the alarm with LAUSD's inspector general, who confirmed that such practices were widespread within the district. State regulators underscored the gravity of altering official attendance records, categorizing it as fraudulent behavior with far-reaching consequences on chronic absenteeism rates and instructional time. Despite the severity of the situation, LAUSD attempted to minimize the incident by labeling it as an "isolated" occurrence in a recorded message to parents [10]. However, the evidence suggested a systemic problem extending beyond a single school [10].

State Superintendent Tony Thurmond pledged to investigate these allegations thoroughly, emphasizing the importance of scrutinizing any hint of misconduct: "Whenever there's any instance, even the slightest suggestion of wrongdoing, it should be investigated and reviewed and audited," he asserted. Schools found to fall short of mandated instructional minutes due to attendance fraud could face substantial penalties amounting to millions of dollars [11].

Miami Dade OIG Confirms Carvalho's Previous Financial Misconduct

Miami-Dade County's Office of Inspector General (OIG) conducted thorough investigations that shed light on concerning trends in Alberto Carvalho's financial oversight practices prior to his tenure at LAUSD. The OIG's findings uncovered a series of troubling instances where public funds were mismanaged under Carvalho's leadership as the superintendent of Miami-Dade. Specifically, it was revealed that a substantial amount of $6 million allocated for driver education programs was mishandled during his time in office.

One of the most alarming discoveries was the deliberate misrepresentation by Miami-Dade school administrators regarding the status of the driver's education programs in order to secure funding between the years 2011 and 2016. Despite claims that 36-37 campuses were running fully operational programs that met grant requirements, the reality was starkly different, with only six schools actually providing the necessary behind-the-wheel instruction.

Moreover, the investigation unearthed that the district had misappropriated $6.2 million from the Drivers Education Safety Trust fund, which was sourced from a $3 surcharge on traffic citations. Instead of being utilized to support driver education initiatives as intended, these funds were redirected to the district's general fund, raising serious concerns about financial mismanagement and lack of accountability.

In addition to the financial discrepancies, inspectors also found shocking conditions related to the training vehicles used in the program. These included cars with shattered windows and flat tires, rusted and dented roofs, and even instances where vehicles had become habitats for wildlife, such as an iguana nest. Furthermore, the dire state of the equipment led to teachers resorting to makeshift solutions like using a stick to change gears due to broken mechanisms, highlighting the extent of neglect and disarray within the driver education program.

Miami Education Foundation Formerly Headed by LAUSD Superintendent Alberto Carvalho: Donations Raised Questions of 'Impropriety'

The Office of the Inspector General (OIG) conducted an investigation into a substantial donation amounting to USD 1.57 million that was directed towards the Foundation for New Education Initiatives, a nonprofit organization affiliated with Carvalho's district [1]. Notably, K12 Inc., which is now known as Stride, Inc., was the entity behind this significant contribution, which coincidentally occurred just before the school board's crucial decision to terminate their contract with the online learning platform [1]. In a detailed 82-page report, the Inspector General shed light on various concerning aspects surrounding this donation: the suspicious timing of the donation that sparked conflict of interest apprehensions, the absence of clear guidelines within the foundation regarding vendor donations, and the inherent oversight challenges stemming from Carvalho's dual roles as both superintendent and foundation chairman [1].

Furthermore, a state audit further scrutinized Carvalho's actions, concluding that his severance package violated Florida state law. The audit revealed critical deficiencies in the agreement, specifically the lack of mandatory provisions that would prevent severance pay in cases of misconduct termination. Additionally, a science teacher named Shawn Beightol highlighted Carvalho's advocacy for teacher contract concessions while maintaining what was perceived as "excessive" compensation arrangements for himself .

In response to these findings, the Miami-Dade OIG recommended a series of corrective actions, including reimbursing misappropriated driver education funds, implementing more stringent financial controls, enhancing oversight mechanisms for foundation donations, and updating vendor contribution policies . These revelations from Miami resonate with ongoing concerns within the Los Angeles Unified School District (LAUSD) regarding financial management practices and the appropriate utilization of educational resources.

What’s Next

Potential Indictment Scenarios May Loom Over LAUSD Superintendent Alberto Carvalho

State Superintendent Thurmond emphasizes that "whenever there's any instance, even the slightest suggestion of wrongdoing, it should be investigated and reviewed and audited". Critics note that comprehensive investigations have not yet begun, despite these statements.

The upcoming election season adds pressure on LAUSD School Board members. Carvalho might face indictment for Fraud, Waste, and Abuse of public funds.

The evidence gathered strongly indicates the there is a potential for criminal charges to be brought forth in this case due Manipulation of attendance records, which is a direct violation of state law that mandates accurate reporting. Any unauthorized changes made to official records are considered fraudulent activities.

Failures in financial oversight, particularly in the misallocation of Proposition 28 funds and questionable management of federal grants. Financial irregularities have been detected across various jurisdictions, indicating a systemic issue.

Despite these assertions, critics have pointed out the lack of comprehensive investigations being initiated. The upcoming election season has intensified the pressure on LAUSD School Board members like Nick Melvoin, especially with the looming possibility of criminal investigations of Carvalho related to the alleged Fraud, Waste, and Abuse of public funds.

Conclusion

LAUSD Superintendent Alberto Carvalho faces serious allegations about his financial oversight. Reports show mishandling of $77 million in Proposition 28 arts education funds and systemic attendance fraud that affected $764,000 in tax dollars. His questionable practices mirror similar issues from his time leading Miami-Dade schools.

Miami-Dade's Office of Inspector General's investigations uncovered Carvalho's mismanagement of $6.2 million in driver education funds. These findings, along with LAUSD's current allegations, reveal a concerning pattern of financial misconduct across different school districts.

Federal authorities should launch criminal investigations, putting LAUSD in a precarious position. The district could lose $750 million in federal funding while it struggles with a projected $470 million deficit. Eight student families have sued the district, claiming these decisions hurt Black and Latino students more than others.

Former federal prosecutors and California's Attorney General's office are closely watching these developments. LAUSD's financial stability remains uncertain as investigations continue, which puts essential services for its vulnerable students at risk