All 7 board members out after California school misuses $180 Million in funds

Sacramento, California – In the wake of a scathing audit by the California State Auditor, the entire board of directors overseeing Highlands Community Charter and Technical Schools in Sacramento has either resigned or been removed. The audit, released June 24, found that the adult charter school improperly received over $180 million in state education funds through misreporting and questionable practices. The fallout has prompted renewed scrutiny of school governance and financial oversight in California’s charter school system.

According to the report, Highlands received $177 million in funding it was not eligible for during the 2022–23 and 2023–24 fiscal years. Additionally, the audit identified millions of dollars in overpayments stemming from inflated attendance figures. Investigators also flagged potential conflicts of interest and questionable expenditures, including luxury travel, unlawful gifts, and the hiring of unqualified individuals. In one instance, a high-ranking employee earning $145,860 annually reportedly lacked a bachelor’s degree and may have secured the position through her mother, who served on the board at the time.

That board member, Sonja Cameron, was formally removed during a special board meeting on July 7. Shortly afterward, the remaining six board members—Ernie Daniels, Matt Powers, Rick Jones, Sharon Rocco, Mike Reid, and Mary DeChance—submitted their resignations. At least three of them will remain in interim roles to ensure the school remains operational during the leadership transition.

The California Department of Education has requested Highlands repay the $180 million in improperly allocated funding. However, Jonathan Raymond, the newly appointed executive director of Highlands, has challenged the state’s demand. In a statement to ABC10, Raymond described the repayment request as “political theater,” arguing that forcing the school to return the money would lead to its closure.

Highlands serves a student population that includes immigrants, refugees, and adult learners seeking second chances through high school diplomas and job training. If the school were to shut down or significantly reduce its operations, many students could be left without affordable alternatives. This raises concerns not only about fiscal mismanagement but also about the broader impact on vulnerable communities who rely on institutions like Highlands for opportunity and mobility.

While legal challenges may follow, the audit’s findings have already reshaped the school’s leadership and placed intense pressure on state regulators to enforce stricter oversight.