Schools deny allegations of fraud in California programs

Highlands Community Charter School denies fraud allegations ahead of April audit appeal, claiming leadership has corrected prior violations despite state audit findings of $180 million in ineligible K-12 funding.

Objective Facts

Highlands Community Charter and Technical Schools is set for an audit appeal hearing on April 6, 2026 before the Office of Administrative Hearings. The Twin Rivers Unified School District board voted on January 28, 2026 to move forward with revoking Highlands' charter, following a months-long review process triggered by an ABC10 investigation and subsequent state audit into the school's operations. Highlands declined an interview request but stated in a statement that Twin Rivers Unified School District found no evidence of attendance fraud at the school. At a December 2025 board meeting, Highlands' new leadership claimed fraud did not happen and the auditor did not claim fraud, though the auditor questioned the possibility of fraud as did the FCMAT in 2018. The 80-page state audit found the adult school received $180 million of K-12 funding for which it was not eligible, assigned teachers to classes they were not credentialed to teach, and avoided standardized testing by eliminating the 11th grade.

Left-Leaning Perspective

The California Teachers Association, led by President David Goldberg, has focused on strengthening oversight and transparency in nonclassroom-based charter schools following fraud scandals. Assemblymember Al Muratsuchi, Chair of the California Assembly Education Committee, introduced Assembly Bill 84 to target bad actors committing fraud and corruption through lack of transparency and accountability in California's charter oversight system. The left-leaning advocacy position emphasizes that proactive oversight and investigation mechanisms are needed, not reactive audits. Eric Premack, executive director of the Charter Schools Development Center, stated that the governor's emphasis on auditing will have almost zero impact on preventing fraud since audits are designed to review records after the fact rather than stop misconduct in real time. Muratsuchi's bill would have created stronger mechanisms for tracking spending and investigating suspected fraud. The critique focuses on whether Governor Newsom's proposed modest reforms adequately address systemic vulnerabilities.

Right-Leaning Perspective

BlazeTV host Christopher Rufo, one of the authors of the "Califraudia" report on California fraud allegations, responded to Governor Newsom stating that Gavin Newsom is becoming associated with the word fraud, not for fighting it but for enabling it. Conservative critics, including Rep. Kevin Kiley, decry California as the 'fraud capital' and demand resignations and federal oversight, with the DOJ eying California post other state probes. Republican gubernatorial candidate Steve Hilton and state controller candidate Herb Morgan allege widespread pay-to-play abuse within the state's K-12 education system and note fake community college applications were created to steal student aid funds. The right positions Highlands and similar cases as evidence of systemic Democratic failure requiring federal intervention and electoral change. Right-wing media frames the Newsom administration as inadequate in fraud prevention despite multiple opportunities to reform.

Deep Dive

Highlands Community Charter School represents a crucial test case for California's charter school oversight framework heading into April 2026. The school's leadership denial of fraud allegations stands in sharp contrast to the state auditor's detailed findings of systematic violations involving $180 million in ineligible K-12 funding, uncredentialed teachers, falsified attendance records, and wasteful spending on gifts and trips. The core tension is not whether violations occurred—all parties acknowledge serious compliance failures—but rather how to interpret and respond to them. The Highlands case reveals fundamental disagreements about governance. The state auditor found that multiple agencies bore blame for lack of action since a 2018 FCMAT report, including the charter's authorizer Twin Rivers Unified, which conducted only minimal annual oversight and relied heavily on annual audits that had inaccuracies. This implicates not just the school itself but the authorizer and oversight system. The left argues this demonstrates why proactive mechanisms like an Education Inspector General are essential, while the right uses it as evidence of systemic Democratic failure requiring federal intervention. The April 6, 2026 audit appeal will be critical. Jonathan Raymond, Highlands' new executive director brought in after the audit, confirmed the school plans to appeal and acknowledged mistakes made under previous leadership, saying the organization has since taken steps to correct them and is trying to recoup public monies on trips mentioned in audit findings. This suggests a distinction between intentional fraud and systemic negligence may shape the appeal outcome. However, with 4,000 students currently on waiting lists, the stakes are high for service continuity. The unresolved question is whether Highlands' operational importance to immigrant and refugee adult education populations should factor into enforcement decisions, or whether accountability for financial violations must take precedence regardless of community impact.

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Schools deny allegations of fraud in California programs

Highlands Community Charter School denies fraud allegations ahead of April audit appeal, claiming leadership has corrected prior violations despite state audit findings of $180 million in ineligible K-12 funding.

Apr 6, 2026· Updated Apr 9, 2026
What's Going On

Highlands Community Charter and Technical Schools is set for an audit appeal hearing on April 6, 2026 before the Office of Administrative Hearings. The Twin Rivers Unified School District board voted on January 28, 2026 to move forward with revoking Highlands' charter, following a months-long review process triggered by an ABC10 investigation and subsequent state audit into the school's operations. Highlands declined an interview request but stated in a statement that Twin Rivers Unified School District found no evidence of attendance fraud at the school. At a December 2025 board meeting, Highlands' new leadership claimed fraud did not happen and the auditor did not claim fraud, though the auditor questioned the possibility of fraud as did the FCMAT in 2018. The 80-page state audit found the adult school received $180 million of K-12 funding for which it was not eligible, assigned teachers to classes they were not credentialed to teach, and avoided standardized testing by eliminating the 11th grade.

Left says: The California Teachers Association argued that SB 414 fails to address issues that led to massive charter school fraud cases and significantly weakens existing requirements for nonclassroom-based charters to prioritize spending on student learning. Education reform advocates push for stronger, proactive oversight mechanisms rather than audits conducted after fraud has already occurred.
Right says: Right-wing commentators frame Newsom as complicit in fraud rather than fighting it, emphasizing systemic corruption across California state programs. Republican critics view the Highlands case and broader education fraud as evidence of Democratic mismanagement requiring federal intervention and leadership change.
✓ Common Ground
Both perspectives acknowledge that California's public education system overall is remarkably free from fraud, with over 10,500 schools and 631,000 employees serving nearly 6 million students, representing a tribute to the integrity and dedication of teachers, administrators, and staff.
There is broad consensus that charter schools lack necessary oversight and controls following several high-profile scandals resulting in the misuse of hundreds of millions of dollars in state public education funds.
Charter advocates themselves, including Eric Premack of the Charter Schools Development Center, acknowledge they are not in denial that they have a problem, though they differ on solutions with the CTA over SB 414 versus AB 84 approaches.
Multiple audit findings report that while there was no intentional fraud found, the school enrolled students not eligible for services, hired staff with violent felony convictions, and paid some employees' bills, indicating systematic violations regardless of intent classification.
Objective Deep Dive

Highlands Community Charter School represents a crucial test case for California's charter school oversight framework heading into April 2026. The school's leadership denial of fraud allegations stands in sharp contrast to the state auditor's detailed findings of systematic violations involving $180 million in ineligible K-12 funding, uncredentialed teachers, falsified attendance records, and wasteful spending on gifts and trips. The core tension is not whether violations occurred—all parties acknowledge serious compliance failures—but rather how to interpret and respond to them.

The Highlands case reveals fundamental disagreements about governance. The state auditor found that multiple agencies bore blame for lack of action since a 2018 FCMAT report, including the charter's authorizer Twin Rivers Unified, which conducted only minimal annual oversight and relied heavily on annual audits that had inaccuracies. This implicates not just the school itself but the authorizer and oversight system. The left argues this demonstrates why proactive mechanisms like an Education Inspector General are essential, while the right uses it as evidence of systemic Democratic failure requiring federal intervention.

The April 6, 2026 audit appeal will be critical. Jonathan Raymond, Highlands' new executive director brought in after the audit, confirmed the school plans to appeal and acknowledged mistakes made under previous leadership, saying the organization has since taken steps to correct them and is trying to recoup public monies on trips mentioned in audit findings. This suggests a distinction between intentional fraud and systemic negligence may shape the appeal outcome. However, with 4,000 students currently on waiting lists, the stakes are high for service continuity. The unresolved question is whether Highlands' operational importance to immigrant and refugee adult education populations should factor into enforcement decisions, or whether accountability for financial violations must take precedence regardless of community impact.

◈ Tone Comparison

Left-leaning coverage emphasizes structural failures and the need for stronger proactive oversight, using cautious language about audit limitations. Right-wing coverage uses more accusatory language framing the Newsom administration as complicit in fraud rather than merely inadequate at oversight, positioning federal intervention as necessary.