Investigation into Education Relief Funds
A multi-county grand jury, initiated by Oklahoma Attorney General Gentner Drummond, uncovered significant mismanagement and misuse of pandemic relief funds aimed at educational support in Oklahoma. The investigation focused on the Governor’s Emergency Educational Relief (GEER) fund, following the dismissal of a lawsuit filed by Governor Kevin Stitt against ClassWallet, a Florida-based vendor, in January 2023. The grand jury report revealed no evidence of criminal intent or corruption but labeled the fund’s mismanagement as “irresponsible, disappointing, and indefensible.”
Despite Governor Stitt’s attempt to blame ClassWallet for the mishandling of funds, Attorney General Drummond stated that the company was not at fault, accusing state officials of delegating federal fund management to individuals lacking proper expertise. The report highlighted two specific programs under the GEER fund: Bridge the Gap (BTG), which received $8 million to assist low-income families with educational materials, and Stay in School (SIS), allocated $10 million to offer tuition aid to private school students from low-income families. Both programs, according to the investigation, failed to meet their intended goals due to poor oversight and grant mismanagement.
Findings of Mismanagement
The investigation revealed that BTG, led by the executive director of Every Kid Counts Oklahoma (EKCO), current State Superintendent Ryan Walters, permitted the purchase of non-educational items, such as doorbell cameras, Xbox systems, and even Christmas trees, with an estimated $1.7 million in GEER funds misused. Similarly, SIS paid $1.8 million to private schools that either did not charge tuition or offered deeply discounted rates. Additionally, over $5.3 million in grants were disbursed to families who did not face pandemic-related financial hardships.
The grand jury’s findings concluded that the mismanagement stemmed from the improper delegation of authority to individuals unfamiliar with federal fund management, resulting in significant waste of public resources. The report emphasized the need for better training and oversight to prevent future financial mismanagement.
Recommendations for Improved Oversight
In light of the findings, the grand jury issued several recommendations to improve the state’s handling of federal funds. These included mandatory training for agencies receiving more than $10 million annually in federal funding and the establishment of clear guidelines for managing such funds. The recommendations also urged the implementation of internal controls and anti-fraud measures, as well as better procurement practices and conflict-of-interest policies.
In response to the report, Oklahoma officials provided varying statements. The Oklahoma State Department of Education emphasized Superintendent Walters’ commitment to fiscal responsibility, while Governor Stitt’s office accused the Attorney General of using the grand jury as a political tool. Meanwhile, Democratic lawmakers expressed frustration over the findings, calling for greater accountability and transparency in managing taxpayer dollars. House Democratic Leader Cyndi Munson criticized state leaders for failing to protect public funds, while other representatives voiced concerns about the long-term impact of the fund’s mismanagement on Oklahoma’s education system.
