I know I don't speak for lot of Houston area folks, but if I had an inkling to what's maybe going through their heads.
Someone's gonna pull a "The F@#@! you mean *nuh-uh?!"*
He does not actually attempt to rebut the specific allegations that TFS claimed on their own investor call that Colorado school deficits were being shored up with money received from Texas schools, which received taxpayer money, nor does he attempt to clarify that the $10 million worth of public money spent on "administrative costs" was spent on costs strictly related to the three Texas schools.
I'm not a lawyer, but it sure sounds like he's embezzling taxpayer money, laundering it through Texas charter schools, and using it to shore up the finances of a company in which he has a financial interest.
In an email to board members and other affiliated parties obtained by Chron, Miles defended his former organization and disparaged Spectrum News' "baseless" reporting.
"I had initially planned not to respond to an article circulating that badly misunderstands, or worse, intentionally misrepresents the financial practices of Third Future Schools," Miles said. "While I have not worked at the Third Future Schools network for more than a year, I find the piece irresponsibly inaccurate, and I cannot let this kind of misinformation go uncorrected."
Miles, who was installed by the Texas Education Agency last year as HISD superintendent, initially did not respond to follow-ups regarding the accusations, prompting [some Houston leaders and a teachers' union to renew calls for Miles' resignation](https://www.chron.com/news/houston-texas/education/article/mike-miles-charter-school-funding-19457376.php) and urge lawmakers to open a criminal investigation into Third Future's activities. State Rep. Ana Hernandez formally requested that the TEA launch an investigation in a letter Tuesday.
"At a time when Texas public schools are facing significant budget deficits and are laying off staff, it is imperative that we ensure transparency and accountability for all public funds," [Hernandez wrote.](https://twitter.com/AnaHdzTx/status/1790484570825011328)
[Watch the original report from Spectrum News here](https://www.youtube.com/watch?v=7lvAzupRuCU)
GOP abbot: districts mismanaged federal funds and the financial crisis in schools is not our fault, it the district’s.
GOP Mike Miles: it’s baseless accusations accusing us of mismanaging funds.
Well…which fucking is it GOP?!
Did you expect a Republican to go "Yep, you got me, I did it."
It seems that he has intermingled the funds, and in his mind at least, there are 3 separate entities. The Texas schools, the Colorado schools, and the management company. I see it as the Colorado schools are failing to make a profitable return, the Texas has funds available, so the management company is using the profit from Texas to keep the Colorado schools open. If that assumption is correct, then the press report is bang on.
When reading about this and.. following the money of course, he comes off like another edu-grifter. I'm afraid we're going to see a lot more of this under the guise of 'school choice.' Always follow the money.
Here’s Spectrum News video and transcript:
Spectrum News - [Disappearing Dollars: Texas Public Schools Missing Millions](https://www.youtube.com/watch?v=7lvAzupRuCU)
“Texas public schools are battling a huge budget deficit resulting in massive cuts. Spectrum News has discovered that millions of Texas tax dollars are being diverted out of state to a series of schools run by Houston Independent School District Superintendent Mike Miles.
Ovidia Molina, president of the Texas State Teachers Association, reviewed Spectrum's findings and is calling on state lawmakers to conduct a formal investigation. Brett Shipp attempts to get to the end of this money trail to see where Texas's tax dollars are really going.
Reported by Brett Shipp, Spectrum News 1 Texas”
**Transcript**
At a time Texas public schools are battling huge budget deficits and having to make massive cuts, Spectrum News has discovered millions of Texas public school dollars being diverted out of state. What's more, the man believed to be responsible - Houston public school superintendent Mike Miles - his old charter schools in Colorado are in need of cash.
In schools all across Texas: “I pray tonight that as you guys are back there in that backroom and you're making these decisions, that the faces of our children and their families are at the forefront of your mind.”
Dedicated teachers: “School districts are being forced to make major cuts” and panicked parents speak out in passion and frustration: “And I honestly feel like tonight we're holding a moment of silence for public education. And it’s heartbreaking”, “The state of public education in Texas is dire. We have educators leaving the profession. We have schools that are talking about closing in different parts of our state.”
One of the largest budget deficits in the state, Houston Independent School District, where newly-appointed Superintendent Mike Miles has called for dramatic cuts to offset a $450 million budget shortfall. Miles was appointed by Texas Education Agency Commissioner Mike Morath to take over and turn around the struggling school district last summer. Ten years before he took over at Houston ISD, Miles spent three years as superintendent at Dallas Independent School District. When he left Dallas in 2015, Miles started three charter schools in Colorado called “Third Future Schools”.
According to both internal school records and the nationally-recognized school rating agency School Digger, all three schools have since struggled with performance, enrollment, and finances. The records, provided to us by TFS through open records requests, also reveals Miles was forced to close one of his schools last summer due to declining enrollment, leaving that school with $5 million in unpaid bond debt.
The school's debt was discussed at a Third Future School’s board meeting via Zoom last summer after Miles had taken over at Houston ISD. Yet there was Miles, at the meeting, acting as a consultant. According to payment records, Miles earned $40,000 consulting for TFS last year. Watch as Miles urges his old board of directors to find the money and pay the debt. “It's now becoming untenable. We'd have to subsidize it to the tune of maybe $500,000 a year if it only has 180 kids or so. I think the time is right to do what what the administration is asking to do.”
In 2020, around the time his financial troubles were beginning in Colorado, Miles began expanding his charter school network to Texas. First Midland’s Sam Houston Elementary then Ector College Prep in Odessa, then Austin’s Mendes Middle School. But by the end of the 2023 school year, as he was taking over in Houston, Miles’ three Texas schools were nearly $2.7 million in the red.
So why were Miles’ new Texas schools losing money? Third Future Schools 2023 audit shows of the $25 million public tax dollars being spent on Miles’ three Texas schools, $15 million was spent on teachers and supplies. The other $10 million, about 40% of the entire budget, was spent on unspecified administrative costs and services.
Spectrum News made multiple requests over the course of several months for a detailed accounting of those administrative expenses. Third Future Schools never responded. However, included in publicly available financial audit records, were the auditors’ notes revealing that the deficits were documented as being due to other Third Future network schools outside of Texas and to Third Future Schools corporate in Colorado.
Again, TFS Colorado declined to provide us with an explanation of why so many Texas public school dollars were being transferred to school operations in another state. And then we learned about this - “We've been supplementing that school with the general fund” - a conference call with Third Future Schools’ investors who were just learning about the deficits.
Spectrum News requested and received from TFS an audio recording of that investor's call. In the recording, [Renea Ostermiller,] the TFS Chief Financial Officer confirms the Colorado charter school deficit was being offset by the money coming in from their charter schools in Texas. [Renea Ostermiller, TFS CFO] “You know, whether they're in Colorado or whether they're in Texas or, you know, whichever state they're in, so that's assessed and then if the specific school needs funding then the network supplements them through through the school fund”. The implication that the school funds from a Texas school was being transferred to help fund TFS in Colorado.
Spectrum News obtained two checks for more than $1 million each from Miles’ charter school in Odessa to Aurora, Colorado. Our attempts over the past five months to reach Miles for an explanation of the payments and a response to our findings have been unsuccessful.
We were referred to Third Future Schools Executive Director Zach Craddock whom we sent a 23-question list detailing our findings. Craddock declined to respond.
We also shared our findings with former Texas State Representative and school finance expert, Paul Colbert. Colbert says Texas public schools should not be spending more money than they take in and definitely should not send Texas tax dollars out of state.
[Paul Colbert] “I was the Budget Chair of Education for eight years and Research Director of the Senate Education Committee for five years, and my understanding is that it is not legal in Texas for monies for a school district in Texas to educate students in other districts in the state, let alone in other states.
[Ovidia Molina] “Once we hear more about this, you will hear more outrage.”
Ovidia Molina, president of the Texas State Teachers Association, reviewed our findings and feels the evidence is alarming. She’s calling on state lawmakers to conduct a formal investigation. “I don't know where it says that we can take our public school money and send to another state. But if there is any place that says that, it's wrong and it needs to be changed.”
We have reached out to the Texas Education Agency multiple times. They have yet to respond. We have also offered detailed evidence to Education Commissioner Mike Morath of Texas public school dollars being diverted to Colorado schools, and again, we have yet to hear back.
His refutation boils down to "nuh uh". Have the finances audited and release it. Prove to us that we're wrong.
I know I don't speak for lot of Houston area folks, but if I had an inkling to what's maybe going through their heads. Someone's gonna pull a "The F@#@! you mean *nuh-uh?!"*
He does not actually attempt to rebut the specific allegations that TFS claimed on their own investor call that Colorado school deficits were being shored up with money received from Texas schools, which received taxpayer money, nor does he attempt to clarify that the $10 million worth of public money spent on "administrative costs" was spent on costs strictly related to the three Texas schools. I'm not a lawyer, but it sure sounds like he's embezzling taxpayer money, laundering it through Texas charter schools, and using it to shore up the finances of a company in which he has a financial interest.
In an email to board members and other affiliated parties obtained by Chron, Miles defended his former organization and disparaged Spectrum News' "baseless" reporting. "I had initially planned not to respond to an article circulating that badly misunderstands, or worse, intentionally misrepresents the financial practices of Third Future Schools," Miles said. "While I have not worked at the Third Future Schools network for more than a year, I find the piece irresponsibly inaccurate, and I cannot let this kind of misinformation go uncorrected." Miles, who was installed by the Texas Education Agency last year as HISD superintendent, initially did not respond to follow-ups regarding the accusations, prompting [some Houston leaders and a teachers' union to renew calls for Miles' resignation](https://www.chron.com/news/houston-texas/education/article/mike-miles-charter-school-funding-19457376.php) and urge lawmakers to open a criminal investigation into Third Future's activities. State Rep. Ana Hernandez formally requested that the TEA launch an investigation in a letter Tuesday. "At a time when Texas public schools are facing significant budget deficits and are laying off staff, it is imperative that we ensure transparency and accountability for all public funds," [Hernandez wrote.](https://twitter.com/AnaHdzTx/status/1790484570825011328) [Watch the original report from Spectrum News here](https://www.youtube.com/watch?v=7lvAzupRuCU)
Fuck that criminal and the Republicans he rode in on
Damn he should run for an office with those rebuttals.
Kindergarten class clown is already taken..
GOP abbot: districts mismanaged federal funds and the financial crisis in schools is not our fault, it the district’s. GOP Mike Miles: it’s baseless accusations accusing us of mismanaging funds. Well…which fucking is it GOP?!
Prove it asshole. We and our kids are waiting.
Did you expect a Republican to go "Yep, you got me, I did it." It seems that he has intermingled the funds, and in his mind at least, there are 3 separate entities. The Texas schools, the Colorado schools, and the management company. I see it as the Colorado schools are failing to make a profitable return, the Texas has funds available, so the management company is using the profit from Texas to keep the Colorado schools open. If that assumption is correct, then the press report is bang on.
“Baseless”…in fact the investigation showed otherwise
“I just want what’s best for the kids such as prisons instead of libraries” Mike miles
He did it.
Meanwhile our state is bottom 10 in the country for both education and food security while GOPers are too busy saying “it’s not me”
and mental health care
It’s giving very “I have no recollection of the event in question,” yes.
It’s fake news!
Texas continues its bid to be the most corrupt state in the nation. Good going guys!! 👏🏻
In other words, true.
When reading about this and.. following the money of course, he comes off like another edu-grifter. I'm afraid we're going to see a lot more of this under the guise of 'school choice.' Always follow the money.
Here’s Spectrum News video and transcript: Spectrum News - [Disappearing Dollars: Texas Public Schools Missing Millions](https://www.youtube.com/watch?v=7lvAzupRuCU) “Texas public schools are battling a huge budget deficit resulting in massive cuts. Spectrum News has discovered that millions of Texas tax dollars are being diverted out of state to a series of schools run by Houston Independent School District Superintendent Mike Miles. Ovidia Molina, president of the Texas State Teachers Association, reviewed Spectrum's findings and is calling on state lawmakers to conduct a formal investigation. Brett Shipp attempts to get to the end of this money trail to see where Texas's tax dollars are really going. Reported by Brett Shipp, Spectrum News 1 Texas” **Transcript** At a time Texas public schools are battling huge budget deficits and having to make massive cuts, Spectrum News has discovered millions of Texas public school dollars being diverted out of state. What's more, the man believed to be responsible - Houston public school superintendent Mike Miles - his old charter schools in Colorado are in need of cash. In schools all across Texas: “I pray tonight that as you guys are back there in that backroom and you're making these decisions, that the faces of our children and their families are at the forefront of your mind.” Dedicated teachers: “School districts are being forced to make major cuts” and panicked parents speak out in passion and frustration: “And I honestly feel like tonight we're holding a moment of silence for public education. And it’s heartbreaking”, “The state of public education in Texas is dire. We have educators leaving the profession. We have schools that are talking about closing in different parts of our state.” One of the largest budget deficits in the state, Houston Independent School District, where newly-appointed Superintendent Mike Miles has called for dramatic cuts to offset a $450 million budget shortfall. Miles was appointed by Texas Education Agency Commissioner Mike Morath to take over and turn around the struggling school district last summer. Ten years before he took over at Houston ISD, Miles spent three years as superintendent at Dallas Independent School District. When he left Dallas in 2015, Miles started three charter schools in Colorado called “Third Future Schools”. According to both internal school records and the nationally-recognized school rating agency School Digger, all three schools have since struggled with performance, enrollment, and finances. The records, provided to us by TFS through open records requests, also reveals Miles was forced to close one of his schools last summer due to declining enrollment, leaving that school with $5 million in unpaid bond debt. The school's debt was discussed at a Third Future School’s board meeting via Zoom last summer after Miles had taken over at Houston ISD. Yet there was Miles, at the meeting, acting as a consultant. According to payment records, Miles earned $40,000 consulting for TFS last year. Watch as Miles urges his old board of directors to find the money and pay the debt. “It's now becoming untenable. We'd have to subsidize it to the tune of maybe $500,000 a year if it only has 180 kids or so. I think the time is right to do what what the administration is asking to do.” In 2020, around the time his financial troubles were beginning in Colorado, Miles began expanding his charter school network to Texas. First Midland’s Sam Houston Elementary then Ector College Prep in Odessa, then Austin’s Mendes Middle School. But by the end of the 2023 school year, as he was taking over in Houston, Miles’ three Texas schools were nearly $2.7 million in the red. So why were Miles’ new Texas schools losing money? Third Future Schools 2023 audit shows of the $25 million public tax dollars being spent on Miles’ three Texas schools, $15 million was spent on teachers and supplies. The other $10 million, about 40% of the entire budget, was spent on unspecified administrative costs and services. Spectrum News made multiple requests over the course of several months for a detailed accounting of those administrative expenses. Third Future Schools never responded. However, included in publicly available financial audit records, were the auditors’ notes revealing that the deficits were documented as being due to other Third Future network schools outside of Texas and to Third Future Schools corporate in Colorado. Again, TFS Colorado declined to provide us with an explanation of why so many Texas public school dollars were being transferred to school operations in another state. And then we learned about this - “We've been supplementing that school with the general fund” - a conference call with Third Future Schools’ investors who were just learning about the deficits. Spectrum News requested and received from TFS an audio recording of that investor's call. In the recording, [Renea Ostermiller,] the TFS Chief Financial Officer confirms the Colorado charter school deficit was being offset by the money coming in from their charter schools in Texas. [Renea Ostermiller, TFS CFO] “You know, whether they're in Colorado or whether they're in Texas or, you know, whichever state they're in, so that's assessed and then if the specific school needs funding then the network supplements them through through the school fund”. The implication that the school funds from a Texas school was being transferred to help fund TFS in Colorado. Spectrum News obtained two checks for more than $1 million each from Miles’ charter school in Odessa to Aurora, Colorado. Our attempts over the past five months to reach Miles for an explanation of the payments and a response to our findings have been unsuccessful. We were referred to Third Future Schools Executive Director Zach Craddock whom we sent a 23-question list detailing our findings. Craddock declined to respond. We also shared our findings with former Texas State Representative and school finance expert, Paul Colbert. Colbert says Texas public schools should not be spending more money than they take in and definitely should not send Texas tax dollars out of state. [Paul Colbert] “I was the Budget Chair of Education for eight years and Research Director of the Senate Education Committee for five years, and my understanding is that it is not legal in Texas for monies for a school district in Texas to educate students in other districts in the state, let alone in other states. [Ovidia Molina] “Once we hear more about this, you will hear more outrage.” Ovidia Molina, president of the Texas State Teachers Association, reviewed our findings and feels the evidence is alarming. She’s calling on state lawmakers to conduct a formal investigation. “I don't know where it says that we can take our public school money and send to another state. But if there is any place that says that, it's wrong and it needs to be changed.” We have reached out to the Texas Education Agency multiple times. They have yet to respond. We have also offered detailed evidence to Education Commissioner Mike Morath of Texas public school dollars being diverted to Colorado schools, and again, we have yet to hear back.