IDEA gets conservators in settlement with Texas Education Agency
The Texas Education Agency appointed a pair of conservators Wednesday to oversee IDEA Public Schools after agency investigation of allegations of financial impropriety that surfaced in 2021.
According to the district, the conservators are part of a settlement agreement IDEA reached with the TEA and the U.S. Department of Education to resolve compliance issues self-reported after an internal investigation in 2021.
The settlement, IDEA says, includes the district agreeing to return $28.7 million in grant and formula funding to the Department of Education in monthly installments through the end of 2026, a payment plan designed to have negligible negative impact on the district.
IDEA says it’s made three payments already.
The TEA notified the district about the conservators in a letter Wednesday.
“As you are aware, since 2021 TEA has been actively conducting investigations into numerous allegations against the charter district of financial and operational impropriety,” Commissioner Mike Morath wrote. “Earlier this year, the charter district negotiated a settlement agreement with TEA, which was fully executed as of the date of this letter.”
In a statement, IDEA says it’s pleased by the decision.
“Reaching settlement agreements with the Department of Education and TEA closes a difficult chapter for IDEA so we can continue to notch wins for the students that have always been central to IDEA’s mission,” it says.
Extravagant spending by the district’s founders and top administrators led to questions that ultimately put the district on the path toward state intervention.
Purchases of San Antonio Spurs tickets, a boutique hotel and the lease of a private jet earned IDEA unenviable criticism from politicians and news outlets around the state.
Tom Torkelson, the institution’s co-founder and CEO, stepped down in 2020.
Criticism, leadership changes and attempts at reform continued through 2023, when IDEA tapped Jeff Cottrill — himself a TEA man — to lead the school system.
IDEA says it’s achieved genuine reform.
“Before 2020, the priority at IDEA was rapid growth, but there lacked a parallel emphasis on ensuring that the funds fueling that growth were properly administered and documented as required by law,” the statement says. “IDEA has since installed new board members and executive leadership, enlarged the staff responsible for grant management and compliance, and strengthened internal controls and auditing procedures.”
A conservator is the state’s mid-level option for intervention at a district.
It’s more significant than a monitor, which IDEA had since 2022, but less significant than a board of managers.
A monitor’s essentially a conduit between the district and the state. A conservator plays a more active role. They can sometimes veto school system action they disagree with.
“It is my sincere desire that all parties work together in a cooperative and productive manner to address the issues identified in the district,” Morath wrote in the letter.
