DeLaney comments on federal indictment of charter school operators: ‘We have created education policies that are subject to abuse’

A federal indictment has been brought against 3 former charter school operators in Indianapolis relating to their operations of Indiana Virtual School (IVS) and Indiana Virtual Pathways Academy (IVPA). According to the indictment, the three corporate officials are accused of intentionally reporting false attendance numbers in a conspiracy to defraud the State of Indiana, which pays the schools based on attendance. 

State Rep. Ed DeLaney (D-Indianapolis) issued the following statement: 

“As is demonstrated in this indictment, we have created education policies that are subject to abuse. 

“Instead of depending upon elected school officials, the state has decided to depend on charter schools that use outside contractors who are not under close supervision and lack public accountability. We export our management and oversight responsibilities to people who choose not to perform the function. In the end, the taxpayers lose out.

“Charter school authorizers do not always monitor the conduct of the schools they are authorizing. Our current charter school management system, or lack thereof, not only creates the opportunity for fraud but has reportedly cost the state at least $85 million of taxpayer money in this one case.

“To add insult to injury, the indictment alleges that while these corporate operators of the schools were getting funding based on fraudulent attendance numbers, the real and lower attendance numbers were used when it came time to pay their teachers.

“What this indictment doesn’t tell us is the impact of such mismanagement on the students at this school. Our children deserve better. Our taxpayers deserve better. Charter schools must be subject to public accountability.”