Financial review reveals suspicious transactions through Charter schools

After three years of research, a report by an Arizona think tank reveals that a majority of Arizona charter schools are using state taxpayer funds for suspicious financial transactions.

Curt Cardine, a fellow with the Grand Canyon Institute, talked with Arizona Horizon host Ted Simons about the reports’ findings.

Cardine mentioned that many of the suspicious transactions involved business deals with the school owners, corporate boards and their relatives.

“The Superintendent can’t be doing business with his brother, the board can’t be doing business with a relative,’’ said Cardine. “That is allowed in Charter schools by law, 99% of them engage in it.”

While the practice of related-party transactions is legal for Charter schools, it is illegal for public schools.  But charter schools, like public schools, rely on public income, and increased scrutiny on their finances may affect how they are funded.