Texas Private Schools Hire Relatives and Enrich Insiders. Soon They Can Do It With Taxpayer Money.

An investigation by ProPublica and The Texas Tribune found more than 60 instances of nepotism, self-dealing and conflicts of interest among 27 private schools that likely would have violated state laws had the schools been public.

by Lexi Churchill, ProPublica and The Texas Tribune, and Ellis Simani, ProPublica

For about eight years, a Houston private school has followed a unique pattern when appointing members to its governing board: It has selected only married couples.

Over 200 miles away, two private schools in Dallas have awarded more than $7 million in combined contracts to their board members.

And at least seven private schools across Texas have issued personal loans, often reaching $100,000 or more, to their school leaders under terms that are often hidden from public view.

Such practices would typically violate laws governing public and charter schools. But private schools operate largely outside those rules because they haven’t historically received direct taxpayer dollars. Now, as the state moves to spend at least $1 billion over the next two years on private education, lawmakers have imposed almost none of the accountability measures required of the public school system.

If held to the same standards, 27 private schools identified by ProPublica and The Texas Tribune through tax filings likely would have violated state law. The news organizations found, and three education law experts confirmed, more than 60 business transactions, board appointments and hiring decisions by those schools that would have run afoul of the state rules meant to prevent self-dealing and conflicts of interest if they were public.

“It’s frankly astonishing to me that anyone would propose the massive sort of spending that we’re talking about in these school voucher programs with, at best, minimal accountability,” said Mark Weber, a public school finance lecturer at New Jersey’s Rutgers University who opposes vouchers. “If I were a taxpayer in Texas, I’d be asking, who’s going to be looking out for me?”

Texas has long stood as a holdout in the national push for voucher programs, even as other conservative states embraced them. Gov. Greg Abbott gave school voucher proponents a major win this year, signing into law one of the largest and costliest programs in the country. In doing so, Abbott’s office has argued that the state has “strict financial requirements,” saying that “Texas taxpayers expect their money to be spent efficiently and effectively on their behalf, both in private and traditional public schools.”

The law, however, imposes no restrictions to prevent the kinds of entanglements that the newsrooms found.

The contrast is sharp. Public or charter school officials who violate these rules could be subject to removal from office, fines or even state jail felony charges.

Private schools face none of those consequences.

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