U.S. officials reported to be looking at how OSDE spent grant money for substitute teachers

Murray Evans and M. Scott Carter, The Oklahoman
·3 min read

The U.S. Department of Education is examining the way the Oklahoma State Department of Education spent federal grant money on substitute teachers, an Oklahoma City television station reported Tuesday.Information about what federal officials are looking for remains scant. No records of a subpoena or other filings concerning could be found in federal court records. However, in response to an inquiry from The Oklahoman about the investigation, the U.S. Department of Education's press office released a brief statement Tuesday.

Meeting in progress at Oklahoma Department of Education, under investigation for its use of federal gran money.
Meeting in progress at Oklahoma Department of Education, under investigation for its use of federal gran money.

"Earlier this year, the U.S. Department of Education’s Office of Elementary and Secondary Education conducted a regular consolidated monitoring for the Oklahoma Department of Education. OESE is currently working to finalize its report and will be communicating monitoring results directly to ODE," the statement read.

Television station KFOR reported Tuesday that a "limited" federal investigation focuses on allegations of misuse of federal grant money. The television station said the federal Department of Education was reviewing how the OSDE paid a group of its employees who were sent to Tulsa Public Schools to serve as substitute teachers.

The station reported that sources told them that at least one of the OSDE employees was paid by a federal funds through an intellectual disability grant, and the move to serve as a substitute could be a violation the federal grant rules on the employee's salary.

KFOR also posted the U.S. Department of Education's response on social media: "The U.S. Department of Education's Office of Special Education Programs will reach out to the Oklahoma State Department of Education Office of Special Education to discuss the use of IDEA funds to pay substitute teachers."

The Oklahoman could not independently confirm the station's story. A spokesman for the Attorney General’s office said that office has no knowledge of any federal investigation into the State Department of Education.

Turmoil has swirled around the state agency since January 2023, when Walters became state superintendent. Walters’ actions while he served as the state’s education secretary – before he was elected as superintendent – also have been scrutinized.

According to Attorney General Gentner Drummond, an audit by the U.S. Department of Education’s Office of Inspector General found questionable expenditures and processes surrounding $31 million in Governor’s Education Emergency Relief (GEER) funds.

A separate audit from state Auditor and Inspector Cindy Byrd, released in June 2023, identified 39,634 items, including video game consoles, home appliances, furniture and Christmas trees, totaling $1,707,377, that were improperly purchased and did not have an educational purpose.

Byrd’s audit identified the executive director of a nonprofit, Every Kid Counts Oklahoma, as the individual who "directly participated" in the administration of the “Bridge the Gap” program that distributed the funds. Before taking office in January 2023, Walters was executive director of that nonprofit. He also was Gov. Kevin Stitt's secretary of education. Walters and Stitt both have blamed a state vendor, ClassWallet, for those issues, but Drummond twice has dismissed lawsuits against that vendor, saying it was not at fault.

Byrd’s audit led to an investigation by the FBI.

Walters has used the Oklahoma State Department of Education’s accreditation responsibility as a weapon since becoming superintendent, threatening to reduce – or remove – the accreditation of districts that have drawn his ire, including Tulsa, Western Heights and Edmond. He’s been especially hard on Tulsa Public Schools, requiring top-level officials from that district to make lengthy presentations each month at state Board of Education meetings.

The state agency has been rocked in recent weeks by the departure of numerous executive-level employees, including its general counsel, executive director of accreditation and chief of staff.

Dan Isett, the spokesman for the OSDE and Walters, did not return a message seeking comment about the investigation. However, on X (formerly known as Twitter) he said in response to a tweet from a KFOR reporter, "There is no fed investigation. There is no violation of federal rules ... OSDE employees participating in the program will be paid from state funds for their time. Again, looking forward to your wholesale retraction."

This article originally appeared on Oklahoman: OSDE reported to be subject of federal investigation