"Behind Closed Doors: Uncovering Conflicts of Interest in Texas Private Schools Amid Voucher Expansion"

Lack of Oversight in Texas Private Schools Raises Concerns Amid Voucher Program Expansion

Co-published with The Texas Tribune

In recent years, a troubling pattern has emerged within Texas’s private school sector, raising questions about governance and accountability as the state prepares to allocate over $1 billion to private education through a new voucher program. Investigations by ProPublica and The Texas Tribune have uncovered a series of questionable practices among private schools that, if they were public institutions, would likely violate state laws designed to prevent conflicts of interest and self-dealing.

A Disturbing Trend

For nearly a decade, Trinity Classical School in Houston has appointed only married couples to its governing board, a practice that raises eyebrows regarding nepotism and governance. Meanwhile, two private schools in Dallas have awarded over $7 million in contracts to board members, and at least seven private institutions across Texas have issued personal loans to school leaders, often exceeding $100,000, with terms that remain largely undisclosed.

These practices are largely permissible under current Texas law, as private schools operate outside the stringent regulations that govern public and charter schools. The recent expansion of the voucher program, which allows taxpayer dollars to flow into private institutions, has intensified scrutiny over these practices.

Accountability Gaps

The lack of accountability measures for private schools starkly contrasts with the regulations imposed on public and charter schools. Public school officials who violate conflict-of-interest laws can face removal, fines, or even felony charges. In contrast, private schools face no such repercussions. This discrepancy has raised alarms among education advocates and taxpayers alike.

Mark Weber, a public school finance lecturer at Rutgers University, expressed concern over the lack of oversight, stating, “It’s frankly astonishing… I’d be asking, who’s going to be looking out for me?”

Legislative Inaction

Despite the growing concerns, Texas lawmakers have imposed minimal accountability measures on private schools. A recent bill aimed at preventing conflicts of interest in public school districts notably excluded private institutions. This oversight gap has allowed private schools to engage in practices that would be deemed unacceptable in the public sector.

For instance, Cristo Rey Dallas College Prep awarded more than $5 million to a construction firm owned by one of its board members, while board members at the Shelton School received hundreds of thousands of dollars for various services. In both cases, the schools claimed that board members recused themselves from voting on contracts, but the lack of transparency raises questions about the integrity of these transactions.

The Voucher Program’s Implications

As Texas embarks on its ambitious voucher program, the absence of stringent oversight for private schools has become a focal point of concern. The state’s education agency, which monitors public and charter schools, will not directly regulate private institutions under the new program. Instead, oversight will fall to private accrediting organizations, which often impose less rigorous standards and do not require annual financial audits.

This lack of oversight is particularly alarming given the historical context. Texas lawmakers initially exempted charter schools from many regulations to foster innovation, but as financial mismanagement and conflicts of interest emerged, the state gradually tightened regulations. The current trajectory suggests a regression in accountability as private schools prepare to receive public funds.

Public Sentiment

The lack of transparency and accountability has sparked outrage among public school parents. Sarah Powell, a mother of two, voiced her concerns, stating, “You can’t have the resources and not any of the regulations. It just isn’t right.” Her sentiments echo a growing apprehension among taxpayers who fear that their money may be mismanaged in the absence of oversight.

Conclusion

As Texas moves forward with its voucher program, the implications for private school governance remain uncertain. The findings from ProPublica and The Texas Tribune highlight a pressing need for accountability measures that ensure taxpayer dollars are spent responsibly and ethically. Without such measures, the potential for conflicts of interest and financial mismanagement looms large, raising critical questions about the future of education in Texas.

This article aims to inform readers about the current state of private school governance in Texas, particularly in light of the new voucher program. The findings underscore the importance of transparency and accountability in educational institutions, regardless of their public or private status.