Houston ISD Superintendent Mike Miles funneling money to Colorado charter schools accusations addressed
HOUSTON - Houston ISD Superintendent Mike Miles is accused of funneling Texas education tax dollars to a network of charter schools in Colorado that he founded.
According to Spectrum News Reporter Brett Shipp, Miles started three Third Future Schools in Colorado after leaving Dallas ISD in 2015, and then the charter network expanded to Texas with more schools starting in 2020.
Shipp stated that internal school records and a nationally recognized school rating agency indicate that the three Colorado schools have struggled with performance, enrollment, and finances. Shipp's report further stated that one of the Colorado schools was forced to close last summer, leaving the school with $5 million in unpaid bond debt.
Miles addressed those accusations in a statement sent to parents and school board members. That statement can be found below:
Friends, Partners, and Board Members:
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. 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.
I have an obligation to make very clear that during my tenure Third Future Schools was always a responsible steward of every public dollar received, all financial agreements and obligations were approved by local boards of directors, authorizers, and in our Texas schools, the school district with which TFS partnered. Eight different districts in three states have trusted Third Future Schools with the education of their most underserved students and have overseen TFS’s overall financial health and propriety. Third Future Schools has a consistent track record of clean audits year over year, and I have no reason to believe that is any different now. These baseless claims cheapen the hard work and dedication of thousands of staff and students.
The budgets of all Third Future Schools in Texas are attached to the management agreement with the local school district and are part of the approval process. Administrative fees are applied to all schools in all states in order for the central office to oversee and monitor the schools as well as provide network-wide supports (such as finance and human resources) from people and departments in the central office, which is located in Colorado. This is common practice for charters and other independent partnership schools and is not only allowed, but anticipated by Texas’ education law. Spectrum News either intentionally or, through gross incompetence, mischaracterized these common place financial arrangements between charter schools and the charter management organizations that support them.
The Spectrum News reporter also worked to undermine the progress we made in Dallas ISD. It appears he is resurrecting old tactics that are not worth more time and attention. I do not intend to comment further on these spurious assertions. I am committed to staying focused on the tremendous challenge of improving Texas’ largest district.
We have an obligation to finish the year strong for our students and staff, and that is where I will direct my time and attention. I thank you for your partnership and ask that you do the same as we look ahead to the 24-25 school year and beyond. We’ve accomplished a great deal and there is even more left to do.
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Miles was appointed by Texas Education Commissioner Mike Morath last summer to lead Houston ISD after the state took over the district. Before his appointment, he had served as CEO of Third Future Schools, a network of public charter schools in Colorado, Texas, and Louisiana.
