Sisters schools still on the hook for $1.2 million

The clock keeps ticking down to the potential loss of $1.2 million in state funds for the Sisters School District.

On October 16, 2006 state superintendent of public instruction Susan Castillo ordered that $1,208,286.15 be withheld from the Sisters School District as a result of overpayments the state previously made to the district for a disallowed homeschool program.

Castillo based her decision on a audit of the homeschool program that was conducted by the Oregon Secretary of State. The district opperated the program at Sonrise Christian School (now Sisters Christian Academy) from 1999 to 2004.

The state found that the district improperly counted students in the program who were not registered as homeschool students. According to an advisor to the state superintendent, Randy Harnisch, the fact that the homeschool program was conducted at a Christian school was a factor in the investigation, but it was in no way a key issue.

"The religious connection with the Sonrise Christian School is a fact. It is not the basis for the decision of the secretary of state through the investigation. It's not the basis of the decision for the superintendent of public instruction to ask for the $1.2 million back," Harnisch said.

Before starting to withhold the funds, Castillo provided the Sisters School District with the opportunity to respond to her order. According to Harnisch, Castillo is currently awaiting input about the district's response from attorneys from the Oregon Department of Justice (DOJ).

"We are working with DOJ, and we've asked the secretary of state for some materials. I think they are the same materials that the school district asked for. We haven't gotten those yet," Harnisch said. No timeline has been set as to when a "final decision on our response" will be made, he said.

The response is unlikely to change the picture for the school district.

"We need to finish up our review of their response," said Harnisch. "At this point we have no reason to question the secretary of state's conclusions."

Current Sisters High School Principal Bob Macauley was the homeschool program's coordinator. In an interview with state auditor's Macauley acknowledged two mistakes in administering the program.

When auditor Andrew Love asked Macauley if he ever visited Sonrise to talk to teachers, Macauley replied, "There were a couple (of visits), but there should have been a lot more. I should have been in there a lot, but it wasn't like I had my feet up on a desk.

"I think of two things wrong in retrospect, and I'll admit it. ... Supervision is poor and the second one is that I did not realize that I did not have these kids registered at ESD. I think those are the two, for me...."

Macauley emphasized that there was no intent to do anything underhanded. He also said there was statewide confusion as to whether to consider such a program officially homeschool or alternative education.

"Nothing was done in secret or done in trying to deceive anyone, and I know you guys aren't in education and at times that may be a blessing, but the thing is that understanding the difference between alternative ed(ucation) and homeschool doesn't sound like much and it is a monster."

The transcripts were provided to The Nugget by school board candidate Mike Morgan, who obtained them from the ODE through a public records request.

The transcripts cover the secretary of state's investigators' interviews conducted with former Superintendent Steve Swisher, Bob Macauley and Sonrise teacher Rebecca Locklear. The complete transcripts as provided by Morgan may be viewed at http://www.nuggetnews.com.

In her interview, Sonrise teacher Rebecca Locklear indicated that all of the students in the program were full-time Sonrise students.

Harnisch acknowledged the issue of whether or not students were properly registered with the HDESD was the major concern of the secretary of state's auditors. All sides seem to agree that the majority of students were not, and that is the main basis of the decision to require the repayment of SSF funds.

Morgan thinks, based on the interview transcripts, that the district officials involved didn't try hard enough to ensure that the program was appropriate.

"A reasonable person could conclude that they wanted the money and the ends justified the means," Morgan said. "Less than perfectly-written statutes and administrative rules may have provided legal loopholes that could be exploited, but these administrators must have known that the state did not intend to pay the salaries of private school teachers. They could have asked for clarification on this issue but didn't."