DeLaney comments on virtual charter school alleged fraud

INDIANAPOLIS – On Jan. 29, State Representative Ed DeLaney (D-Indianapolis) successfully amended House Bill 1204 with a proposal that would hold virtual charter schools accountable, make sure students are actually enrolled in classes, and thus address the warning signs of virtual school fraud. The Indiana Senate has not yet acted on the DeLaney amendment.

A little over a week after the unanimous passage of the amendment, a scathing state auditors’ report revealed that two virtual charter schools defrauded Indiana of nearly $65 million. DeLaney fears that inaction by a supermajority beholden to a pro-school choice movement will act “too little, too late” in its protection of education and taxpayer dollars.

“Leader Phil GiaQuinta (D-Fort Wayne) and Indiana House Democrats have been pushing for more accountability and an investigation into the obvious warning signs of dubious practices from virtual charter schools,” DeLaney says. “Meanwhile, the supermajority has doubled-down on the privatization of education in our state by refusing to study ideas from House Democrats that would hold virtual charter schools to the types of accountability standards applied to traditional public schools. The House Republicans have also awarded charter schools a 10-percent increase in funding for fiscal year 2020 in the 2019 state budget while traditional public schools only received a 2-percent increase.

“The suggestion from House Republicans that it is not the Indiana General Assembly’s responsibility to address this issue by legislative investigation shows a high level of irresponsibility and apathy. We just threw taxpayer dollars in the middle of the street and let the bad guys pick it up.

“As a member of the House Education committee, I will continue to press for more accountability for virtual charter schools and all schools that receive state funding. At the end of the day, this isn’t just about the $65 million, it’s about making sure our children are getting a good education, no matter where they go to school.”

In July of 2019, Leader GiaQuinta called for the state legislature to hold virtual charter schools accountable. In fact, Indiana House Democrats have sought such controls for multiple sessions, but the Republicans have remained resolute that nothing should be done.

In August of 2019, DeLaney sent a letter to House Speaker Brian Bosma and other members of the Legislative Council to study issues surrounding virtual charter schools. The topic was ultimately not studied during the 2019 interim study committee on education. 

House Bill 1204 with DeLaney’s amended language is currently before the Senate for further consideration.