Report warns turmoil in Santa Clara County’s Office of Education could be costly

A new 42-page report finds the problem-plagued Santa Clara County Board of Education failed to follow its own management policies and warned that the “dire” and “dysfunctional” relationship between the board and the office’s administration could lead to financial consequences for the county and its 234,000 students.

A state agency that helps California schools resolve financial and operational issues began reviewing the Santa Clara County office’s governance and leadership in July and submitted its findings to interim superintendent of schools Charles Hinman last month.

While the review was initiated to examine the leadership structure of the county’s Office of Education, the agency’s investigators quickly pivoted to the education board after hearing numerous complaints from staff, said Mike Fine, CEO of the Fiscal Crisis and Management Assistance Team.

“We heard repeatedly from folks about the board,” Fine said. “Some described it as unprofessional, some described it as working outside their authority. There were a number of different ways people described it as far as impacting their work.”

There is some disagreement about how the review originated, with some board members suggesting that former Superintendent Mary Ann Dewan prompted the report on her own and others saying it came in response to a board request.

“The report was publicly released more than two weeks after Dr. Dewan’s termination, which raises concerns about the process, limited scope and context included in the report unilaterally commissioned by Dr. Dewan,” Board President Maimona Afzal Berta said in a statement.

But board member Tara Sreekrishnan said the report was conducted transparently and reveals the consequences of “rash decisions” by the board majority that ignored good governance, dismissed community input and jeopardized fiscal stability.

“This dysfunction has diverted resources and focus away from our students,” Sreekrishnan said. “It’s past time we put our egos aside and prioritize responsible governance, building a productive partnership with our staff and community.” 

The report comes amid turmoil following the unexpected removal early last month of Dewan, who subsequently sued the board for ousting her without cause. While the board has offered no explanation for her termination, reports suggest that her firing stemmed from tension with board members.

And this month Hinman called for investigations into the county education office’s finances and operations over a possible misuse of public funds, including potential unauthorized expenses related to personal legal fees and investigations of the county board.

“The elected trustees of the SCCOE Board of Education were not aware of any FCMAT study and were never interviewed for the original report,” Hinman said in a statement. “Further context, relevant and essential information about SCCOE’s organizational processes and fiscal practices should be examined by FCMAT.”

The county’s Office of Education, run by the superintendent of schools, provides training, business, technology and payroll services to the county’s 33 school districts and 60 charter schools. The superintendent is appointed by the county’s elected, seven-member board of education. Only four other counties in the state make such appointments.

Dewan’s ouster as county superintendent was the latest in a string of controversial resignations and firings within the county over the last decade. A 2018 Civil Grand Jury report examined the “unusually high turnover rate” at the education office and estimated the cost to taxpayers at more than $1 million for the previous five superintendents over the past 11 years.

Fine said the appointed structure within Santa Clara County’s Office of Education and confusion among board members over their and the superintendent’s roles has led to conflict. In most California school districts, school boards are in charge, but in Santa Clara County, the board’s role is limited, and the superintendent has the most authority.

The state report highlighted two main points of contention: micromanagement from the board and the board’s failure to follow its own policies.

County staff reported working excessive hours to respond to the volume of board requests, diverting resources away from the county’s students and school districts, according to the report.

“Board members are taking actions that have the potential to cause fiscal risks for the county office of education,” the report said. “The poor relationship between the board and the administration at the county office is diminishing the productivity of both entities, which in turn is diverting valuable resources away from the students of Santa Clara County.”

Fine said it’s critical that school districts and county offices of education run efficiently because there aren’t a lot of resources available for their students.

“When you create inefficiencies, you waste resources,” Fine said. “And county offices of education and school districts don’t have any room to waste resources.”

The cost of the tension between the board and the superintendent is most evident in the county’s legal fees. The education office said the board has racked up $243,000 in legal costs for the 2023-2024 year — nearly $70,000 more than what it is allocated. And last month the board approved a contract for separate legal counsel from the county office — a move that is highly unusual for education offices, Fine said.

Fine said two separate legal counsels for a board and office of education is not only unusual and wasteful but a warning sign that “people are not on the same page.”

“It does send a message that things aren’t okay,” he said. “And it layers a cost in there that I would question (the) value for because it’s taking money from some educational program, I can assure you that.”

The report also pointed to questionable and unprofessional behavior by board members, including board member Grace Mah, who has been the subject of at least two other investigations.

The report said Mah attempted to assert authority over a hiring decision for which the board has no authority, publicly shared personnel details and acted without authority to conduct a parent-led committee meeting despite a cease-and-desist message from Dewan. Mah confirmed at the public board meeting on June 5 that she held the meeting despite Dewan’s text.

Mah is currently trailing behind Jessica Speiser in the race for her seat on the county’s board of education. Sreekrishnan, who was also seeking election in the fall to the state Assembly, lost her race.

Mah did not respond to this news organization’s request for comment.