Disappearing Dollars: Texas Public Schools Missing Millions (UPDATED REPORT) | Spectrum News

NEW UPDATES: Following our report, education advocates and a Texas state lawmaker have called for an investigation. Miles said he welcomes it.
Texas public schools are battling a huge budget deficit resulting in massive cuts. Spectrum News has discovered that millions of Texas tax dollars are being diverted out of state to a series of schools run by Houston Independent School District Superintendent Mike Miles.
Ovidia Molina, president of the Texas State Teachers Association, reviewed Spectrum's findings and is calling on state lawmakers to conduct a formal investigation. Brett Shipp attempts to get to the end of this money trail to see where Texas's tax dollars are really going.
Reported by Brett Shipp, Spectrum News 1 Texas
#SpectrumNews #texas #austin #dallas #houston #investigations #fraud #education
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[@spectrumlocalnews]

Hi all, thank you for all the comments and discussion here. Do you have a question or a note that you want to share with our Texas newsrooms? You can reach out to our team directly using the form in this link in addition to your comments here: specne.ws/KeEw1x

[@davidboi4025]

WE NEED TO INVESTIAGTE MAYOR TURNER ASWELL THEY GOT US INTO THIS MESS

[@abbey319]

Good work specnews!

[@Sabbathissaturday]

Next dive into the Texas lottery commission! Where is that money going? Directly into the pockets of the commission. Nothing but crooks in every office.

[@stevefisher2553]

EXACTLY

[@mattsmelley5569]

If I'm right FORMER Gov Ann Richards said and I'm paraphrasing that ALL money from lottery sales WILL go into lottery!

[@gdiup9241]

💯 we need transparency on the voluntary tax

[@sugarpuddin]

Why not? In America Greed is Good! Americans get their morality from Prosperity Gospels

[@cjhan47]

You Texans elected these people. Keep voting for republicans and this is what you will get.

[@ThatWhichErodes]

This should be a federal investigation not just of Mike Miles but also of the Texas Education Agency.

[@thundergato84]

The TEA is under Republican control.

[@sandraclick7812]

9

[@rednekokie]

Rotsa Ruck.

[@ThatWhichErodes]

@@thundergato84 yes it is.

[@carolinematusevich889]

I guarantee that this school district is not the only one in TX that's fleecing the public's tax dollars. They're just the first to be exposed. And this is happening all across the country as we voted for bad actors who's beliefs involve breaking our public education system. It's time to nationalize our public education system.

[@melindaabplanalp3980]

That's the guy that was so proud he was closing the libraries.

[@PAMELAPORTER-ci7mr]

An educator proud to close libraries? Incredible.

[@francisconobrega2399]

So he could steal the library funds into his pocket

[@jamesmartin9401]

@@PAMELAPORTER-ci7mr The problem is, he's no educator. He's an administrative flunkie for MAGA's culture wars and privatization zealotry.

[@michaelshrader5139]

If Gregg Abbott and his mega-donor from Pennsylvania get their way, there won't be a public school system left in Texas anyhows. Y'all might want to look into that Texas School Voucher thingy and who stands to gain the most if it becomes law in Texas! Just saying. 😕

[@jeanettealfred3054]

The state wanted to seize HISD so bad... then they seize the district and boom money missing😢

[@richardcrawford2752]

Yes, and who was over seeing that? MIke Morath, Mile's buddy from his Dallas ISD days!

[@hughjaass3787]

Shocker, a Texas School administrator, is wasting millions on multiple failing Charter Schools....Charter Schools are Worse than we know.

[@pam1096]

We need a federal investigation into the corruption in the Texas school system.

[@D_M121]

​@cassandra9699 texas is not corrupt. You are probably just a liberal that's mad because you can't get handouts

[@randallreed9048]

And I am sure that the GOP majority in the US Congress will jump right on that!

[@rebornvirgin]

the corrupt investigating the corrupt. this world is cooked.

[@freeinghumanitynow]

The feds are too busy dealing with that Heynard clown in one of the Chicago burbs but hopefully they'll get around to dealing with the bad actors in the Texas school system.

[@nmr6988]

Houston and any democrat-run city will always be crooked.

[@nooneinparticular4895]

Spectrum deserves an award for this awesome investigative report.

[@puppybasket3906]

Seconded

[@gardencookeat22]

Peabody!

[@shenandoahwildcat]

Seriously they cracked this earlyyyyyy far before major networks were on it. I hate their souls as an internet provider but thats probably a me problem.

[@nunyabidness3075]

It’s definitely Pulitzer material, because it fits their narrative, and is baseless as usual. 😂🤣😂

[@shenandoahwildcat]

@@nunyabidness3075 😂😂😂😂😂😂😂

[@mfcobb1]

Looks like misappropriation of funds for personal gain.

[@Ssllldbshxhebsk]

Only illegal when you do it.

[@mfcobb1]

@@Ssllldbshxhebsk True, I'm a civilian.

[@tw262150]

Why is this failed administrator running one of the largest school districts in the country? Was there not any due diligence performed prior to his appointment?

[@alexander1902]

Because republicans love cronyism more than democrats. And he's a friend of Governor Wheels.

[@luisvilla799]

Funny part he has never been a teacher

[@PantherMom512]

Due Diligence? Well, I bet his Donation Check cleared‼️

[@midcenturymoldy]

You’ll have to ask the state. He was installed after Texas fired the locally appointed superintendent and took control of HISD.

[@karlrovey]

The corruption is a feature, not a bug.

[@MsJai_1]

In every state, politicians' long-term plan is to close as many PUBLIC schools as possible, and shift funds (taxpayer funds) to PRIVATE and/or for-profit CHARTER schools, which will have the ability to reject enrollment to ANY potential student for nearly any reason.

[@brucehicks5817]

Abbott: "We investigated ourselves and found no wrongdoing."

[@julesl7679]

Lol of course you did...lol

[@denimdios]

We need this dude behind bars

[@angie.alexander]

With Abbott.

[@thomaskim5008]

Commissioner Mike Morath needs to be fired.

[@mesister3862]

Agreed! He is a businessman and does not have an education background. Abbott appointed him in efforts to run schools like a business. Higher standards and stricter school ratings with less money. Abbott is seeking to bankrupt school districts to support his school voucher system. It is a formal political plan that effects the poor and marginalized population so they are not educated.

[@thomaskim5008]

@@mesister3862 He sounds like not much of a businessman.

[@peds103]

No he needs to be in jail!

[@6BlackWings]

We're not gonna talk about the Governor withholding school funds because he wants public school to crumble so he can get his religious charter schools funded?

[@EMendonca-mp2mf]

Governor needs to take responsibility.

[@ninefingerjack]

If you think a Republican will willingly admit when they are wrong, youve never been to texas.

[@kapooya6402]

Y'all the ones that uncovered this !!! Awesome work

[@CharlieEarthRoast]

@Spectrum News, The Houston Chronicle reported this last year. "State-appointed superintendent Mike Miles has spoken with more than two dozen elected leaders during his time running Houston ISD, including the top officials in the state: Gov. Greg Abbott and Lt. Gov. Dan Patrick, according to the district. Miles was appointed in June to run the largest school system in Texas by Education Commissioner Mike Morath, an Abbott appointee, who imposed a state takeover on the district, as required by state law, due to long-running academic and special education failures in Houston." Now Abbott won't call a special session to fund TX Public Schools and says that it's Dems fault because they wouldn't pass his corrupt school voucher bill which would make this kind of fraud easier to do! Paint the whole picture! Abbott is in on this!

[@newme1813]

FACTS! Too much nonsense has been going on under his watch! 👀

[@t.mccullough2573]

I was wondering if there was a connection between these charter schools getting illegal taxpayer public school dollars, and Abbott holding the state funding of all the ISD'S hostage over a "voucher" bill

[@10MBorLess]

He is a charter school owner? Well it's no wonder the money is going missing. They want public funds to build more charter schools for their profit. It's the same story again and again the rich get richer by appropriating public funds

[@dannypinyan3949]

Miles should be arrested immediately.

[@thomaskim5008]

Commissioner Mike Morath needs to be fired.

[@courtneesdad]

Dang dude. Do you really want the government to start arresting people without being investigated? They would love that. There is a process

[@mrpoolplayer6379]

@@thomaskim5008 Youse guys forgot about arrested & incarcerated...

[@thomaskim5008]

@@mrpoolplayer6379 Youse?

[@rednekokie]

I agree, but considering what happened with their AG, I don't expect any changes. Or convictions.

[@tuomasholo]

FYI Morath is an Abbott appointee.

[@gals5252]

Doesn’t mean Abbott is at fault.

[@JEEPER7788]

@@gals5252right 🙄

[@alexander1902]

@@gals5252yeah he should walk a mile in his shoes since he's always been a stand up guy. 😂

[@ninefingerjack]

​@@gals5252 just like trump hiring nothing but crooks and losers... At what point in time does the party of "Personal Responsibility" actuall take ownership for their failures?

[@humongousdingus7382]

The question is why is he STILL ALLOWED to work in any position of responsibility!!!!!

[@karlrovey]

Because the state wants him to continue destroying HISD.

[@richardcrawford2752]

@@karlrovey Mike Morath and Miles are buds from back in the day when both ran Dallas ISD

[@user-st6nt4ou6f]

What? Funds from Texas going to Colorado? Seriously?

[@CharlieEarthRoast]

Don't forget to add that Abbott is refusing to call a special session to fund these schools needing the funds...he wants his vouchers to pass for these private schools!

[@funtomco.studios8106]

That was the whole point of him cleaning out the district and appointing Miles in the first place! Texas leg. probably has the opportunity to draft articles of impeachment over this, but i don't know for sure...

[@michaelshrader5139]

@@funtomco.studios8106 They won't, though. Reporters need to ask Gregg more questions about his mega-donor in Pennsylvania and who stands to benefit the most if Texas turns to a "school voucher system".... and why is it Gregg didn't disclose that he was taken on an exotic deer hunting trip with Trey Harris of the now infamous Colony Ridge here in Liberty County TX.... and why is it Gregg didn't disclose a $50,000 "donation" Trey Harris of Colony Ridge made to Gregg in order to get a sit-down dinner with Gregg in the Texas Governor's Mansion? Why is Gregg Abbott so very corrupt? Texans really want to know! 😐

[@fresa6168]

Miles is responsible and Morath held them accountable

[@walterbrown2425]

He held a special session to address funding but the democrats refused his offer because of his school choice proposal.

[@kafka0622]

@@walterbrown2425 Democrats are outnumbered by Republicans by more than 20 members of the Lege. The Dems couldn't "refuse" anything if the Repugnicans want it to pass.

[@bluelithium9808]

This guy is the best TEA could do to "fix" Houston? Also he didn't leave Dallas, he was removed.

[@velvetice100]

Them folks in Dallas don't play that nonsense that is the DIFFERENCE 😂

[@karlrovey]

"Fixing" the district isn't the state's goal.

[@davidmckendry7684]

From Dallas, he was a pretty crappy superintendent and made as much as a mid-size company CEO.

[@denimdios]

He’s firing more then half maintenance/support staff and great teachers, principles and even a group of special teachers that HISD has that take care of the well being and education of the homeless students that live in shelters, or parents live in cars, streets etc. they insure that the kids eat, have a safe environment to study after school and keep up with their well being. And he is letting them go like they are useless employees that aren’t worth the money. Makes sense though. He just cares about the money and paying off his debts and pocketing the rest. Please people, help get this guy out of HISD and we may be able to put back together all the damage he has made.

[@karlrovey]

That would require the state to act...

[@OfficialJustJoce]

​@karlrovey he has an at will contract with his faculty. He reminds them, often, that they are replaceable. He will fire the same day he hires if he finds you sitting down at any time during the day. If you are not at lunch, you are required to stand. It's amazing he's lasted this long.

[@karlrovey]

@@OfficialJustJoce He is protected by the state. The locals have no say in whether or not he stays. As long as he keeps his state bosses happy, nothing is going to happen to him.

[@OfficialJustJoce]

@karlrovey yup. The corruption in our education system is disgusting.

[@FarmToMarketRoad]

Hold Gov. Abbott responsible!

[@hotttt28]

Charter schools are at odds with public schools! Lock him up !

[@Jennelle1958]

#GOPCorruption

[@dorthymcbride3384]

Gov. ABBOTT, where is your double check system to catch crooks early in the game of thievery?.

[@belindalopez3230]

Thank you for investigating this

[@Krystal_Kitty7]

Thanks for keeping up with this story!! Here in El Paso TX our school districts are also under investigations for mishandled funds!!! No wonder our schools are shutting down, the people who run the show are terrible with money!!

[@rheuss1]

There should be millions in rainy day accounts all over Texas. Districts have taken in more tax dollars than expected in the last four years, year after year because of increasing appraised values of property. Where’s the money???? State wide!!!

[@robertcetti6935]

Yes if you investigate other school districts in Texas you will find more corruption. For example Austin ISD has declining enrollments and yet gets more money and bond funds every year to fund their scheme.

[@v.l.7656]

Property taxes can only be used for certain things like salaries. State funding is based on attendance and accountability/STAAR test scores. These funds also have restrictions on what the money can be spent on. I know an increase in property tax sucks (blame the refugees from blue states), but that’s how your teachers get paid. It’s demoralizing having to repeatedly hear parents, neighbors, friends complain about it knowing that’s the only way you will be able to survive with the rising cost of living

[@rheuss1]

@@v.l.7656 I have two children in education, one in public Ed. And one in private Ed. The one in public education said they would not do it again if they could start over. The one in private education said they would do it again .

[@GtrPknMama]

Disgraceful stealing from those who need help the most, our children and teachers !🤬

[@DisEnchantedPersons]

Does the corruption ever stop?

[@sonjafritsch5230]

PUBLIC SCHOOL ONLY Private school are only "for investor profit" only

[@CharlieEarthRoast]

Remember when you vote. Gov. Abbott won't fund the public schools unless the Dems also agree to pass school voucher program to funnel more funds into private schools...Freaking crazy. Next cycle he will have the votes, most likely to pass it. Corruption at it's finest.

[@CharlieEarthRoast]

From the Houston Chronicle: "State-appointed superintendent Mike Miles has spoken with more than two dozen elected leaders during his time running Houston ISD, including the top officials in the state: Gov. Greg Abbott and Lt. Gov. Dan Patrick, according to the district. Miles was appointed in June to run the largest school system in Texas by Education Commissioner Mike Morath, an Abbott appointee, who imposed a state takeover on the district, as required by state law, due to long-running academic and special education failures in Houston. "

[@tringuyen7519]

Charter schools are taking state tax $ bc TX GOP believe that charter schools are better than public schools. Thus, these schools get rich on your tax $ while your kids get nothing!

[@nxdela602]

This is much like when someone that works at a bank informs a friend about someone that just made a huge cash withdrawal. Miles came to get the money from HISD because he was informed and sent by someone in the know. This should be classified as a crime. Doesn't matter if a loophole exists. This is theft of educational funds. HISD may have needed some review but not a robbery.

[@Fluffybunz779]

So charter school companies should be limited to only operating in one state not sharing monies between states

[@reasonablegentleman]

They shouldn't be allowed to comingle tax dollars between states. If Texas allocates 14k in tax dollars per student and Colorado allocates 10k(hypothetically) , that 14k per student is for Texas students.

[@midcenturymoldy]

It’s public money from the State of Texas meant for his charter schools in Texas. What he did is misappropriation of public funds. Texas taxpayers don’t fund schools in Colorado.

[@mfcobb1]

Rules for thee and not for me!

[@fluxfaze]

Corruption is bigger in Texas, and Colorado.

[@Bay0Wulf]

A Corrupt Bureaucrat!? Who would have imagined that a Bureaucrat would be an Embezzler, Thief and Scam Artist?

[@mru5170]

We all know he gave money to Colorado he needs prison

[@Sarcastic_Asmodeus]

Keep flying those migrants to Colorado. We'll get the money from you bozos somehow. Lol

[@bobjohnson4512]

Miles works for the governor, why does Abbott have to say about this.

[@texascookingtoday5873]

If you educate children they wont be as easy to control as adults. 🤨

[@re8746]

Where is the oversight? Unreal that this much money is missing. He needs to go to jail.

[@missrose0077]

Abolishing the Dept of Education is a high priority for the Republican party. Senator Rand Paul has spent the last ten years on this project.

[@dixter1652]

didn't houston lay off 2000 teachers...... thats not a typo... they laid off 2000 teachers under miles...

[@dstriker7333]

And janitors

[@hatleyhoward7193]

In already crowding classrooms.

[@dixter1652]

@@hatleyhoward7193 when I was a kid the schools were there for the kids whos Dad/Mom paid the school taxes.... then the Fed made it a requirement that we had to school the illegals kids too, for free... then the illegals decided it was cheaper to have the schools babysit their kids for 12yrs... then when the kids got out of school they would be given a lawnmower for grad gift.... and a mop/pail for the girls... and the classrooms got crowded...

[@midcenturymoldy]

He fired them. The City of Houston didn’t fire them. HISD isn’t run by the city. And HISD shouldn’t be blamed for the firings, either. Miles was forced on them by the state.

[@hatleyhoward7193]

@@midcenturymoldy HISD can and should be blamed for a lot of things, but I don’t think anyone believes this is the fault of the district.

[@spicywater123]

I would like to think Abbott didn't know, but it's more likely he was told to do it.

[@Chels-fz5uq]

This is what happens these days when you vote Republican

[@TheCgmullen]

Outside Agencies needed to investigate this serious problem.

[@Texas7771]

Amazing journalism!!!! Good job!!!!!

[@radman1136]

Well there is one thing that you can honestly say a public school has never been accused of having done.

[@MR_Chorem-Chaverry]

I want my money back.

[@redefiningmyself8598]

Can someone file a report with the FBI or contact the department of Justice?

[@fluxfaze]

Maybe Gov. Abbott should have long ago known about it all, too?

[@texoutlaw1732]

BTW Mike Miles was appointed by the State of Texas

[@BD_RMNCE]

Unfortunately this is starting to look like a legal loophole mess. From the sounds of it, he was able to divert the funds because of the schools he operates in Texas. Looks like the transfer was Tax payer dollars, the state, the schools, TFS corporate for admin fees, and then those admin fees were used to cover the deficits in CO. This may be why he's so confident for an investigation. 😒

[@BeckyG-ip2ns]

Serves you right Texas.

[@stevefisher2553]

YOU VOTED FOR FASCISM

[@melvinharris1210]

Exactly!

[@midcenturymoldy]

Not really. In the last gubernatorial election, only 45% of registered voters actually voted. Abbott was reelected by the votes of only 25% of Texas voters. The real problem is 55% of Texans didn’t vote for anyone.

[@stevefisher2553]

@midcenturymoldy I knew a woman that didn't vote because she thought she would be called for jury duty!

[@maureencoyle666]

Thank God for our diligent reporters and investigators who look into these “crimes”!! 🤦‍♀️🤦‍♀️🤦‍♀️

[@ninefingerjack]

Are you also thanking sky daddy for the allowing of miles to steal from childrens futures?

[@Epicfunk]

Lock him up!

[@wtate3840]

This is considered normal and is a legislative issue. The representatives and lawmakers you put in office are responsible for the laws that allow for tax dollar diversion across state lines.

[@ninefingerjack]

And the gop is always forthcoming with their intents right?

[@wtate3840]

@@ninefingerjack Only disclosed to the general public intentionally when circumstance warrants. Notice that funding for ISD’s, Law Enforcement, Fire Department is suddenly needed after new Mayor of Houston is sworn in. Yet, the State just claimed to have given homeowners a property tax cut from millions in surplus revenue.

[@jameyw98]

Brought to you by Gov. Gregg Abbott.

[@urielgalvan1095]

Got him ! This guy wanted spend over 1 million with no over site or approve but the school board here in Houston voted no. Make you wonder why ?

[@user-ru4jl4vd5g]

Someone or agencies sleeping at the wheel. Hold them all accountable. Such waste of taxpayers money.

[@Souryuuha1]

Don’t bother asking TEA under PIR (public information request) they are just as bad as this guy at finding any documentation. I started asking too many questions back in 2022-2023 and instead of fixing their problems, no joke they instead changed the law that TEA doesn’t have to answer certain questions lol. They also thought they were smart and changed the policies to be harsher in some of the areas I was asking about while simultaneously being able to hide any laws they could break. The electric grid has weak points that can cause wildfires and might not be able to hold up this summer under new wet bulb conditions, we have flooding in East Texas and hurricane season is coming with very little planned, but our Texas Republican leaders ignore every warning, make things worse for everyone else, and then pass unethical laws when people start asking questions about potential illegal activity and corruption.

[@mphillips2110]

The problem in Texas isn't with these corrupt politicians. It's with the voters in rural areas who keep reelecting them. Eventually they are going to wake up and realize that they're being manipulated and financially bled dry.

[@gdiup9241]

Thank you who ever had the cajones to bring this to light!!!! Isn't their checks and balances? Guess not.

[@user-st6nt4ou6f]

Is he Abbotts buddy ? Abbott says everything in Texas is great

[@vicwei4302]

TEA needs to be banned and the whole thing needs to be restructured.

[@robertanthony5147]

put republicans in charge and watch your tax dollars disappear

[@larryerwin5135]

Why parents send their children to these criminals is just crazy.

[@myphd-myprisonhistorydiplo691]

Out of state?? Wait did the people vote for that?? Enough is enough!!

[@jeremiahwat1]

This is seriously starting to sound like the movie "Bad Education."

[@nmr6988]

THIS CAN BE STOPPED. Where is the oversight???

[@djb1634]

You know why HISD has such a deficit? Because their funding is taken to redistribute to smaller school districts in west Texas. West Texas wants low taxes so they take money from Houston.

[@nicolethompson1515]

Greed Greed Greedy

[@tristan12ism]

Keep at it Spectrum!!!

[@valeriemantos5949]

This is in reality securities fraud, he is defrauding the bondholders of Texas school bonds.The permanent school fund maybe insuring these bonds...Great job Brett, Valerie

[@sssyria]

Not only that.. third future school took 1.3 million from PPP and was forgiven for it

[@StopWhining491]

Just more to love about TX.

[@maryannegunter115]

Ask the governor where it is😮

[@roderickhogan4566]

Greg Abbott have a hand in this too

[@brucecalaway9475]

Unbelievable....TX. Keep the good ole boy network going.

[@D_M121]

If this is true. He should He fired and so should the guy that hired him because he didn't do his homework before hiring him

[@cestwhat1317]

Criminals don’t respond when asked to the wrongdoing.

[@janwoodworth1]

What a surprise...not. Abbott clearly looks the other way.

[@jeffreypaul734]

Where I come from, we call it embezzlement

[@kirklamb3270]

Nobody should be shocked at this. Every person responsible for oversight should immediately lose their job after the investigation is done!!

[@midcenturymoldy]

The report states that this has nothing to do with the Houston Independent School District other than Miles being the state-appointed head of the system. This is about public funds meant for his charter schools in Texas being diverted by his company to his charter schools in Colorado. Nothing whatsoever to do with Houston schools.

[@larryvaughn2567]

Where money is missing, there is usually a thief to be found close by.

[@Jusnathank]

So Mike owns these schools and is the superintendente for all schools including his in Texas? That’s conflict of interest and misappropriation of funds. Criminal charges need to be filed against him and his team.

[@latashaberkley5000]

LMBO...this sounds about right in the current political climate. Way to go!

[@TS-tk2wv]

They should've sent him Packing as soon as he got to Houston. He's not for Texas.

[@progressivehardindustrialslug]

No. Its Greg Abbot who takes the money. Always has been always will be.

[@jorgeposadas1192]

So why are the authorities not investigating this?

[@MatchaKat94]

They're in on it?

[@longhornlove1]

Arrest him!!!!!!!!

[@MarjorieHarrington-rh4bg]

Disgusting !!!!!!!!!

[@stephensporck494]

This Mike Miles needs to be locked up for at least ten years and reimburse Texas public schools, I do believe he stole the monies missing from Dallas Schools😢

[@jeepguy4499]

It’s almost like these people have zero clue what they’re doing.