Kansas attorney general wants review after millions in unauthorized school spending

Kansas Attorney General Derek Schmidt has called for a review to find out whether millions of dollars in unauthorized school spending in Kansas was an isolated departure from the law or a more widespread problem.

Some lawmakers also want to know whether they can trust the work of the state’s long-time school finance chief as they move forward in a high-stakes lawsuit over education funding.

They question whether the work of Deputy Education Commissioner Dale Dennis has been accurate after an audit found the Kansas State Department of Education provided some school districts additional transportaiton funding not authorized by law over several decades.

Others say the questions are an effort to cast doubt on the reliability of education data that lawmakers receive.

Either way, tensions between the Kansas State Department of Education and the Legislature are running high at a time when lawmakers will need significant information from the agency. Lawmakers face an April 30 deadline to respond to a Kansas Supreme Court ruling that school funding is inadequate.

The case – called Gannon – affects how the state spends billions of tax dollars on public education.

Schmidt – the state’s lead attorney in Gannon – said the audit calls into question the implementation of the state’s school funding formula’s transportation aid provisions. His office "has an obligation to represent accurately to the Kansas Supreme Court both the structure and implementation of the Kansas system for funding public schools," he said in a letter to legislative leaders, the governor, and education officials.

Schmidt wrote that "as Attorney General I am concerned about the substance of the Audit Report’s finding that KSDE distributes public funds in a manner not authorized by state law."

Schmidt is calling for a comprehensive and independent financial audit and wants the Legislature to coordinate with the State Board of Education on a single audit. Multiple, uncoordinated reviews would risk "potentially unproductive arguments" about their findings, he said.

Sen. Molly Baumgardner, R-Louisburg, put the audit findings in blunt terms.

"If you think this hasn’t tainted our Supreme Court case, it’s difficult to think that it hasn’t been tainted," Baumgardner said.

Some Democrats say the timing of the accusations against Dennis are no coincidence.

"This is an attempt, I believe, to discredit the data that has been used as a foundation" to make school finance decisions, said House Minority Leader Jim Ward, D-Wichita.

Dennis, perhaps the state’s foremost expert on school funding, has said he allocated the additional transportation money at the direction of legislative leaders years ago.

The Kansas State Board of Education on Friday stood behind Dennis. The board voted 9-1 to support his continued employment.

The special meeting came after Senate President Susan Wagle and House Speaker Ron Ryckman sent a letter the department outlining their concerns. The letter quickly became public, spurring an outpouring of support for Dennis.

Wagle and Ryckman emphasize the need for trustworthy data.

"We want to make sure the data we have and that our experts have is accurate," said Wagle, a Wichita Republican. "This came in the middle of a lawsuit. So it all becomes very complicated. And we need factual data."

Ryckman emphasized the issue wasn’t intended to be about Dennis, and he called Dennis a great advocate for public education. Still, he emphasized the need for good data.

"Both sides of this court case rely heavily on that data," he told reporters Friday.

Moments later, he added: "The thought of coming in and making sure that the rest of the formula, the current formula, is being followed I think is critical to the case for both sides."

The letter from Wagle and Ryckman called for KSDE to authorize a forensic audit of itself. The board didn’t consider any audit request on Friday, but asked for recommendations later this year to ensure a similar situation doesn’t arise in the future.

Alan Rupe, an attorney representing school districts that have sued Kansas for additional funding, said the controversy surrounding Dennis should have no bearing on how lawmakers respond. Dennis is above reproach, he said.

"It’s got a tad bit of irony that legislative leadership is outraged that they allege somebody didn’t follow the law and this court has told the Legislature what the constitution says," Rupe said, adding: "And it seems like to me they should take a dose of their own allegations and follow the court’s directive and let the Kansas Department of Education, the state board and Dale Dennis do what they do very well."

Gov. Sam Brownback has also proposed adding $600 million over five years. He will resign in the coming week, however, and it is unclear whether Lt. Gov. Jeff Colyer will stand by that plan.

Lawmakers are awaiting the result of a study into the state’s school finance needs, expected in March. The study is expected to inform the Legislature’s response.

This story was originally published January 29, 2018 at 7:00 AM with the headline "Kansas attorney general wants review after millions in unauthorized school spending."