California is facing an educational paradox where significant increases in public school funding have not yielded better student outcomes, according to Herb Morgan, a candidate for state controller.

Morgan, who tracks state expenditures through his "California Radical Transparency" website, stated that K-12 education funding in the state has risen from $97 billion in 2019 to $151 billion for the current budget cycle. During the same period, per-student spending increased from approximately $16,300 to $27,400.

"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 said. He contends that the disconnect between funding and classroom performance is not due to a lack of resources but a failure in financial accountability at the state level, allowing funds to be absorbed by local bureaucracies without adequate oversight.

Morgan highlighted several alleged instances of financial mismanagement within school districts. These include the A3 Education Charter Network, where an estimated $400 million was allegedly diverted by inflating enrollment numbers; the Scale Leadership Academy, whose founder was accused of siphoning $16 million in public funds; and the Magnolia School District in Orange County, where a former financial executive allegedly embezzled $17 million.

In contrast, Morgan pointed to Mississippi, a state with a significantly lower per-student spending rate of around $12,000. Data from the National Assessment of Educational Progress (NAEP) indicates that Mississippi reports higher average standardized test scores in 4th and 8th-grade math and reading compared to California.

Incumbent State Controller Malia Cohen's office has taken steps to address financial oversight. In July, legislation was signed to strengthen financial oversight of California’s local educational agencies. A statement from Cohen's office at the time said the legislation provides "better tools to strengthen accountability, improve transparency, and detect fraud before it diverts resources from the students who need them most."

However, Morgan criticized the oversight record of Cohen's office, attributing the issues to a "lack of desire" and "lack of skill." He also suggested that artificial intelligence could be used to enhance oversight and detect fraud within the state's budget.

Fox News Digital has reached out to Cohen's office and the California Department of Education for comment.