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LOFT releases investigation report into Oklahoma State Department of Education spending

LOFT releases investigation report into Oklahoma State Department of Education spending

OKLAHOMA CITY (KSWO) – The Legislative Office of Fiscal Transparency (LOFT) has released the findings of its investigation into disbursements made by the Oklahoma State Department of Investigation (OSDE).

According to the LOFT report, the LOFT investigation did not reveal any actions by OSDE that warranted a law enforcement investigation.

LOFT began its investigation after both legislators and school districts raised concerns about delays in districts receiving OSDE funds, as well as concerns about changing communications regarding funding.

Although nothing was found to warrant an investigation, LOFT made recommendations to both the OSDE and the Oklahoma Legislature to ensure that a similar investigation would not be needed in the future.

According to LOFT, the legislature should:

  • For new programs or legislative mandates, require the State Department of Education to publish a preliminary implementation plan within 90 days of the program’s effective date.
  • Budget cap laws must identify any funds that the state Department of Education has the flexibility to use to fund other specified statutory obligations.
  • Clarify whether the “out-of-formula” school district funding directives apply only to schools completely outside the state aid funding formula, or whether they also apply to schools partially outside the formula.
  • Approve the grantmaking process in circumstances in which the nonprofit organization is best suited to support the program’s objectives.

According to LOFT, OSDE should:

  • Review all new regulations by July 1 of each year to determine a strategy for implementing new programs. The plan should include, where appropriate, obtaining feedback from school districts to identify potential implementation issues.
  • Increase written communications to school districts to include: 1. The federal government’s total preliminary allocation of funds compared to the previous year to serve as an indicator of whether schools should anticipate reductions or increases. 2. Notification on whether districts should expect to receive preliminary district allocations and an anticipated timeline for when final numbers will be available.
  • Establish written policies and procedures for each department in the agency to ensure continuity of operations in the event of turnover. This should include an annual communication schedule.
  • Before providing districts with a program implementation plan, ensure cooperation from all departments that will be involved in the program.
  • When an agency identifies conflicts in its statute, written legal advice should be sought immediately.

Members of the Oklahoma House Democratic Caucus offered their thoughts in response to the LOFT findings.

“The continued lack of accountability on the part of the Oklahoma State Department of Education further highlights the willful negligence of the State Superintendent. This puts our school districts and our children second to his own self-interest,” said Rep. Melissa Provenzano (D-Tulsa). “We have a state agency head who is unwilling to commit to improving services to schools. We have the head of a state agency who won’t share how he plans to spend unused payroll money. Repeated calls from the public: “Do something about Supt. Ryan Walters” still remains unanswered.”

“State Superintendent Says Oklahoma State Department of Education’s Goal Is to ‘Shrink Government,’ But Goal Should Be to Establish OSDE’s Ability to Effectively Manage Multi-Million-Dollar State Agency for a Functional Education System,” Rep. Meloyde Blancett (D-Tulsa) said. “I come from a business background, and if you had a CEO whose core staff couldn’t communicate effectively internally or externally with key stakeholders, they would be fired. My question is: If OSDE cannot effectively create a functional working relationship with school districts and legislatures, how can we expect our children to succeed in schools?

Oklahoma State Superintendent Ryan Walters sent the following post to X in response to the LOFT report.