$400 Million Later—AB84 Is the Fix California Desperately Needs

🏛️ What Is AB84 and Why Does It Matter?

AB84 is a major step forward in protecting public education in California. This bill, already passed by the California Assembly and now headed to the State Senate, would finally hold non-private charter schools to the same standards of transparency, accountability, and teacher credentialing as traditional public schools.

Charter schools are funded by your tax dollars but often operate with minimal oversight, which has led to historic fraud. AB84 introduces critical reforms that protect both students and taxpayers.

💸 What AB84 Will Do

-Establish the Office of the Education Inspector General (OEIG):

  * Audit and investigate charter schools, school districts, and other educational entities.

  * Identify and help prevent fraud and abuse.

  * Report findings directly to the California Department of Education.

-Create statewide oversight structures:

  * A state-level charter school governing committee.

  * A board to standardize authorizing and monitoring practices across California.

-Improve teacher and credentialing standards:

  * Close loopholes that let charter schools hire unqualified educators where appropriate.

  * Extend misassignment rules and credentialing enforcement to all teaching staff when applicable. .

-Tighten financial rules and audits:

  * Require charter schools to report finances the same way public schools do.

  * Monitor and limit spending of public dollars by charter contractors.

  * Prevent funding scams based on fake student attendance data.

-Reign in online and non-classroom based charter networks:

  * Cap enrollment expansion for small districts authorizing online charters.

  * Require accurate attendance reporting and verifiable student engagement.

  * Ban shady “parent choice funds” not tied to certified educational staff.

 🧨 Why We Need AB84: The A3 Charter School Scandal

In 2021, California was rocked by one of the largest charter fraud cases in U.S. history. Two men, Sean McManus and Jason Schrock, used their online charter network, A3 Education, to steal over $400 million in state education funds. They enrolled phantom students (sometimes without families even knowing), funneled state money into private charities, and bought themselves luxury homes.

The state controller has since worked to recover $215 million, but the damage was already done. AB84 is the direct result of this scandal and others like it. It puts safeguards in place so this kind of mass fraud can never happen again.

🧾 A Long Time Coming: The Backstory Behind AB84

After the A3 scandal, California Controller Malia Cohen chaired a task force to investigate gaps in educational oversight. Their report recommended over 20 reforms, many of which are now embedded in AB84:

* Stronger auditing standards.

* Uniform financial reporting rules for charter schools.

* More training and regulation for third-party education service vendors.

* Limits on unchecked charter expansion in small districts.

* More transparent teacher credentialing and reporting.

🏛️ Reimbursement for State Mandates

Any costs created by AB84 will be reimbursed by the state. That means school districts, charter authorizers, and other local education agencies won’t be left footing the bill for new oversight requirements. The bill calls for stronger auditing, credentialing, and financial reporting standards, especially for charter schools that have long operated with minimal accountability. It also creates a new Office of the Education Inspector General to help detect and prevent fraud. These changes are critical to protecting students and taxpayer dollars, and AB84 makes sure they’re implemented fairly, without draining local resources.

📞 Take Action: Call A Senator!

AB84 has already passed the Assembly. Now we need to make sure it gets through the Senate Education Committee on July 16th.

Call or email the Senate Appropriations Committee by Friday 8/29 and ask them to vote YES on AB84.

Anna Caballero, Chair (916) 651-4014

Christopher Cabaldon (916) 651-4003

Tim Grayson (916) 651-4009

Aisha Wahab (916) 651-4410

Laura Richardson (916) 651-4035

Also, call your state Representative and urge them to Vote YES on AB-84

Find your Representative at Findyourrep.legislature.ca.gov

Script you can use:

"Hi, my name is \[Your Name] and I’m a constituent. I’m calling to urge Senator \[Name] to support AB84. We need stronger accountability and oversight for charter schools in California. Our kids deserve real teachers, real funding, and real transparency."

 ✅ Bottom Line

AB84 protects students, educators, and taxpayers by closing loopholes that allow charter fraud to flourish. It doesn’t attack charter schools, it ensures they meet the same standards as the public schools they often compete with.

Let’s make sure California learns from the past. Let’s make AB84 law.