Still Asleep at the Wheel - How the Federal Charter Schools Program Results in a Pileup of Fraud and Waste

Oct 15, 2026

Still Asleep at the Wheel examines how the federal Charter Schools Program (CSP) disbursed funds in ways that produced fraud and waste. The report details the Michigan State Board of Education’s vote to block a $47 million CSP grant, outlines concerns about oversight and prior grant use, and contrasts CSP assurances with outcomes at charter schools. It describes authorizers’ control by for-profits, references warnings ignored by the U.S. Department of Education’s Inspector General, and connects prior findings to state-by-state funding results for schools that never existed or closed.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages50

Reading Time2 h 6 min

AccessFree to download

Executive Summary

Introduction

Still Asleep at the Wheel

Conclusion

Recommendations

Appendix

Acknowledgements The Network for Public Education (NPE) is grateful to those who made this report possible. Special thanks to the following members of its staﬀ: NPE Executive Director, Carol Burris, the primary author and lead researcher of the report. NPE Communications Director, Darcie Cimarusti, who assisted with research and investigation. She created all of the tables and graphics in the report, and is responsible for its layout and design. We also thank Darcie for creating the interactive map on our website. NPE Grassroots Network Coordinator, Marla Kilfoyle, who assisted in research, fact veriﬁcation and proofreading. We would also like to thank: Casandra Ulbrich, President of the Michigan State Board of Education, who is investigating how millions of dollars granted to Michigan charter schools that never opened were spent. The results of her investigation provided invaluable information that informed this report. Jeﬀ Bryant who researched and drafted several of the stories of failed charters that appear in this report. Leigh Dingerson for her skilled and careful editing of the report, as well as her advice regarding structure and content. Christopher Shank and Gary Miron who identiﬁed the for-proﬁt and non-proﬁt virtual charter schools on the list of CSP grant recipients. The report would not have been possible without the eﬀort and commitment of the Board of Directors ofthe Network for Public Education, with special thanks to Diane Ravitch, President of NPE. Diane generously gave her support, guidance and advice throughout the writing of this report. Finally thank you to all of our generous donors who make our work in support of public education possible. This report was funded solely by the contributions of small donors to the Network for Public Education. Still Asleep at the Wheel was revised January, 2020 in order to add Appendix D, include new research, correct typographical errors and revise numbers related to closed schools based on feedback from readers. The Network for Public Education is an advocacy group whose mission is to preserve, promote, improve and strengthen public schools for both current and future generations of students. The goal of NPEis to connect all those who are passionate about our schools – students, parents, teachers and citizens. We share information and research on vital issues that concern the future of public education at a time when it is under attack. For more information, please visit our website at www.networkforpubliced[ucation.org](ucation.org). Table of Contents Executive Summary ..............................................1 Introduction .........................................................5 Still Asleep at the Wheel ........................................9 Conclusion ...........................................................29 Recommendations ................................................32 Appendix ..............................................................33 Executive Summary In May of 2019, the Michigan State Board of Education voted to stop the disbursement of a $47 million grant from the federal Charter Schools Program (CSP). The duly elected Board had good reason to take action, especially given that the Michigan Department of Education had applied for the money without the Board’s consent.1 Ironically, just three years before, the Michigan Department's 2015 grant application had been rejected by the CSP; reviewers of the application noted the lack of supervision of the 44 authorizers that approve and monitor the state’s charter schools.2 Charter school authorizing had become a lucrative business for colleges and universities that enjoy a three percent cut of the millions of tax dollars that charter schools receive each year. Nearly 80 percent of the charters in Michigan are controlled by for-proﬁts that have their vested interest in growth as well. But Washington had changed, and now Michigan billionaire Be

FAQs

What event prompted the report to focus on Michigan’s CSP grant decision?

In May 2019, the Michigan State Board of Education voted to stop disbursement of a $47 million CSP grant.

Why did the Board initially try to block the grant?

The Board was not consulted when the state applied and had severe reservations about prior use of CSP funds and whether Michigan’s declining enrollment and achievement required opening more charters.

How does this report relate to the earlier NPE report Asleep at the Wheel?

Still Asleep at the Wheel takes up where the earlier report left off, expanding with detailed, state-by-state information on federal dollars tied to schools that no longer exist or never existed.

Oct 15, 2026

Uploaded by Alex Sinclair