Sacramento, California – The entire board of directors for Highlands Community Charter and Technical Schools (HCCTS) has resigned or been removed following a blistering state audit that found the school improperly received over $180 million in state funding. The audit, released on June 24, 2025, detailed widespread financial mismanagement, including allegations of "fake students," "six-figure jobs for relatives," and "luxury travel on your dime," as highlighted in public commentary. The California Department of Education (CDE) has since requested the return of the misallocated funds from the charter school.
The comprehensive audit, prompted by a two-year investigation by ABC10, revealed that HCCTS intentionally misreported attendance, violated laws concerning gifts of public funds and conflicts of interest, and used public money for lavish travel. Furthermore, the report indicated that the school assigned teachers to classes for which they lacked appropriate credentials. The findings underscore a significant failure in oversight by the school's board, which was entrusted with ensuring proper policies, procedures, and spending.
Highlands Community Charter and Technical Schools operates as an adult education institution, reportedly serving vulnerable populations including Afghan and Ukrainian refugees. While former executive director Bill McGuire admitted the school had "done things wrong," he maintained that actions were taken "for the benefit of the students." Despite these claims, the audit painted a picture of systemic financial irregularities and a disregard for state regulations.
The state audit also criticized the lax oversight provided by the Twin Rivers Unified School District, the California Department of Education, and the Sacramento County Office of Education, stating these agencies failed to adequately monitor the charter school. In response to the scandal, HCCTS has appointed former Sacramento City Unified Superintendent Jonathan Raymond as its new executive director, signaling an intent to "reset and rebuild from a stronger foundation." The school has also laid off hundreds of teachers and administrative staff in the wake of the audit's findings.
The incident has brought renewed scrutiny to charter school accountability and the need for more stringent oversight mechanisms within California's education system. The CDE's demand for the return of the $180 million underscores the severity of the findings and the state's commitment to recovering public funds. The ongoing situation highlights the challenges in ensuring transparency and proper financial management within the charter school sector.