Businessman Herb Morgan, a candidate for California state controller, has criticized the state's significant increase in education spending, arguing that the billions of dollars allocated to K-12 public schools have failed to yield better student results. Morgan contends that California's educational paradox lies not in a lack of resources, but in a breakdown of financial accountability and oversight.
According to Morgan, California's K-12 education funding has escalated from $97 billion in 2019 to $151 billion in the current budget cycle. Over the same period, per-student spending has reportedly jumped from approximately $16,300 to $27,400. Despite this substantial investment, Morgan asserts that educational outcomes have not improved.
"Why is it if we're spending all this money, why aren't we getting the results? It's because we have a broken accountability feature in state finances," Morgan stated, suggesting that funds may be lost within local bureaucracies without adequate scrutiny.
Morgan has highlighted several instances of alleged financial mismanagement and fraud within school systems. These include the A3 Education Charter Network, where an estimated $400 million was reportedly diverted by inflating enrollment numbers; the Scale Leadership Academy, whose founder faces charges of siphoning $16 million in public funds; and the Magnolia School District in Orange County, where a former financial executive is accused of embezzling $17 million.
In contrast, Morgan points to states like Mississippi, which spends around $12,000 per student, significantly less than California. Data from the National Assessment of Educational Progress (NAEP) suggests that Mississippi reports higher average standardized test scores in 4th and 8th-grade math and reading compared to California.
Morgan also critiqued the oversight record of incumbent State Controller Malia Cohen. In July, Cohen's office announced praise for legislation aimed at strengthening financial oversight of California's local educational agencies. "Every dollar intended for California's students should reach the classroom and not lost to fraud, waste, or abuse," Cohen's office stated at the time, emphasizing the need for tools to improve accountability and transparency.
Morgan, an investment professional, suggested that artificial intelligence could be leveraged for oversight to identify and eliminate fraud across the state budget. "The state controller has the constitutional authority over any recipient of state money, as far downstream as it goes," he said. "We don't need to look for needles in the haystack anymore. We just reach in and pull out the needles."
Fox News Digital has reached out to Cohen's office and the California Department of Education for comment.
