Houston ISD superintendent accused of embezzling taxpayer money out of state

A state lawmaker and Houston teachers are calling for Houston Independent School District Superintendent Mike Miles to be investigated after a Spectrum News report found that millions of dollars from Texas public school taxes may have been funneled to a struggling school in its Colorado charter school system.

These results come less than two weeks after the state-appointed administrator announced a $450 million funding shortfall at HISD – leading to district-wide layoffs for the upcoming school year.

A spokesperson for the Texas Education Agency said agency officials were “aware of the report and are looking into the matter.”

Miles did not respond Tuesday to a request for comment from the Texas Tribune.

In March 2023, TEA Commissioner Mike Morath took over the district with a temporary board of directors. The justification given was due to the misconduct of the HISD Board of Trustees and the poor performance rating of Phyllis Wheatley High School. Three months later, Morath named Miles, the former Dallas ISD superintendent, as HISD superintendent.

Spectrum News reported Monday that the Colorado-based Third Future Schools charter school network, founded by Miles, was using funds from the network’s Odessa school to offset losses at its Aurora, Wash. Colorado. Miles’ sister now runs Third Future Schools.

Spectrum also reported that Miles received $40,000 last year in consulting for Third Future Schools, which was facing profound financial setbacks leading to the closure of a Colorado school and $5 million in unpaid debt.

Third Future Schools was established in 2016 after Miles left the superintendent position in Dallas ISD. The charter school chain expanded into Texas in 2020, opening three schools in Odessa, Midland and Austin. The Texas expansion, according to Spectrum News, occurred around the time Colorado schools were showing signs of financial difficulty.

By the end of 2023, Texas schools had already accumulated more than $2.5 million in debt, Spectrum News reported in its months-long investigation.

The outlet reported that the three Texas schools received $25 million in taxpayer money. About $15 million was paid to teachers and staff. But another $10 million was listed by Third Future Schools as unspecified administrative costs. Subsequent public documents obtained by Spectrum News revealed that more than $2 million came from Third Future Schools’ operations in Texas to help cover losses at a Colorado school.

In a letter Addressed Morath, state Rep. Ana Hernandez, D-Houston, urged the state agency to conduct an investigation to clarify whether Texas public school tax money was sent out of state.

“These alleged actions cast doubt on his ability to lead HISD and his commitment to providing the best education for our students,” Hernandez told the Tribune. “Texans deserve transparency, accountability and responsiveness.”

Jackie Anderson, president of the Houston Federation of Teachers, accused Miles of using taxpayer money as his own “personal piggy bank,” echoing Hernandez’s call for an immediate investigation.

“The corruption in this deal is not limited to Mike Miles: the board is also complicit in this dark scheme by failing to provide oversight and transparency,” she said. “Greg Abbott’s takeover of our schools has failed. Teachers, students and their families deserve better and in response, we demand the immediate resignation of Mike Miles and the immediate removal of the TEA from HISD.

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