California task force proposes new charter school oversight as St. HOPE faces scrutiny

A task force formed in response to one of California’s largest charter school fraud cases has released its recommendations to prevent future incidents. This follows the 2021 conviction of 11 individuals connected to the A3 charter school network in San Diego who orchestrated a $400 million fraud scheme.

The task force, which included the state Board of Education, Charter School Association advocates and San Diego County District Attorney, was led by State Controller Malia Cohen. Together they examined the systemic vulnerabilities that allowed the fraud to occur. Cohen emphasized the broader consequences of such fraud, noting that it has undermined public trust in California’s education system.

“It calls into question the charter school sector, the authorizers that approve and oversee charter schools, state agencies with oversight responsibilities, and the certified public accountant profession,” she said.

As the task force advocates for enhanced financial oversight across California’s public schools, Sacramento’s St. HOPE Public Schools network, which runs Sacramento High and PS7 elementary and middle schools, faced its own challenges. An audit released in August revealed several concerns, including conflicts of interest, questionable accounting practices, and under-qualified teaching staff.

Cassandra Jennings, executive director of both St. HOPE Academy and its development company, also served on the board of the public schools. Though Jennings denied any conflict of interest, she stepped down from the board — effective this month — to prevent further questioning into the ethical framework of their charter schools. 

“It’s really not about one individual, and certainly not about me,” Jennings said. “It’s about the schools and the children. I didn’t want that to be a distraction in trying to renew this charter.”

Despite the audit’s findings, the Sacramento City Unified School District board voted to renew St. HOPE’s charter license, albeit with conditions. These include establishing an operational agreement with the district and regular submissions of fiscal documents.

Sacramento City Unified school board president, Lavinia Philips, acknowledged that more oversight is needed for independent charter schools, citing how St. HOPE has operated with relative autonomy for over two decades.

“We granted the charter, we let them run with it. That’s not how it’s supposed to work, but that’s how it has worked,” she said. “So 22 years or so that we’ve had St. HOPE in our district, they have been allowed to manage it the best they can.”

As part of the corrective action plan, St. HOPE’s superintendent, Lisa Ruda, assured the board that steps are being taken to address the issues raised in the audit. These include hiring additional behavior support staff and resetting expectations for students and staff alike.

“We’ve hired additional behavior support professionals to help this year. We’ve done almost what I’d consider a complete reset on expectations for students, consequences for students, but more importantly, training for staff,” Ruda said.

While St. HOPE works to address its internal issues, the state task force released 20 recommendations to improve financial oversight in all California public schools, with a particular focus on charter schools. These recommendations include better training for auditors on education finance and requiring that any delayed audits be reported to the state.

San Diego County District Attorney Summer Stephan said current protocol allows for auditors to be fired by charter schools if they find potential mismanagement of funds.

“The recommendations say that the auditor, who is no longer working on the case, [has] to notify the state controller and the school board as to why,” she said. 

Cohen stressed that these reforms are essential not just for charter schools but for all public schools in California.

“With the education of our children at stake and the significant state investment of tax money in education, it is critical that all schools be held to the highest level of integrity, accountability, fiscal compliance, and transparency,” she said. 

The task force’s work highlights systemic gaps in oversight, while St. HOPE's recent audit and charter renewal demonstrate the challenges of ensuring accountability at the local level. The new guide, which includes revisions to the education code, aims to prevent financial mismanagement at public schools and charter schools throughout the state.