Oregon Department of Education accused of mismanaging $3M, wrongful termination in whistleblower lawsuit

PORTLAND, Ore. (KOIN) – The Oregon Department of Education is facing a lawsuit from a whistleblower, claiming the state agency mismanaged over $3 million and wrongfully terminated her after she raised concerns over the funds.

The lawsuit -- which was first reported by The Oregonian -- was filed in Multnomah County circuit court January 15 and seeks $780,000 in damages with whistleblower and discrimination claims.

The lawsuit was filed by Dr. Allison Watkins, who was hired in October 2023 as the director of Individuals with Disabilities Education Act initiatives. Watkins was hired on a $142,000 annual salary to help implement provisions under Senate Bill 819, which allocated more than $3.1 million to the Oregon Department of Education.

SB 819, signed into law in 2023, covers abbreviated school day programs for students with disabilities. Among the law's provisions, it states that students with disabilities must have access to the same number of instructional hours as other students in their district.

Watkins' position was slated to end around June 30, 2025; however, she was told that the timeframe would likely be extended, or the position would be made permanent, according to the lawsuit.

Watkins' role focused on four main projects to help the agency comply with SB 819, including updating the agency's website, updating guidance to school districts, developing a training series for the 2024-2025 school year, and implementing the new data application.

'Toxic and hostile work environment'

According to the lawsuit, Watkins’ line of supervision “was unclear from the beginning,” noting her direct report supervisor changed at least three times in the first part of 2024.

Watkins claims she experienced and observed behavior from leadership that was “hostile, disparaging, demeaning, and disrespectful towards ODE employees,” noting staff often voiced concerns about the “toxic and hostile work environment.”

According to the complaint, Watkins reported what she believed were violations of the law to her supervisor and human resources.

The lawsuit also highlights an instance in February when Watkins met with an HR manager to discuss accommodations for a recent health condition and to ask about ways to address her supervisor's behavior.

Five days later, Watkins said she had a meeting with her supervisor to discuss ongoing projects; however, the meeting turned hostile as she was “shouted at and accused of not producing enough work," the suit states.

When Watkins asked for specifics, she was informed about tasks she was previously unaware of that were also unrelated to her work around SB 819, the suit claims.

Under a new supervisor in August, a meeting was held to discuss the team structure, but that meeting also turned hostile, according to the lawsuit.

That month, several projects were supposed to launch, and during an SB 819 meeting, Watkins and her team presented the status of the website and data application projects; however, those projects were “undermined” by a supervisor who “repeatedly delayed or failed to provide feedback," the lawsuit claims.

'Mismanaged' funds

In late August, Watkins took paid time off to care for her son, the lawsuit claims, noting around Sept. 3, a supervisor held a leadership meeting, in which Watkins became concerned about proposed changes impacting her team.

“[Watkins] again expressed concerns that the funds appropriated by the legislature for SB 819 implementation were being used for improper or otherwise impermissible purposes,” the lawsuit states. “[Watkins] reiterated that since her team’s budget was allocated solely for SB 819 initiatives, it had become unnecessarily challenging when she and her team were being assigned numerous tasks unrelated to SB 819, which required budget approval.”

The lawsuit adds that a lack of communication from her supervisors increased her concerns “that the funds attributed to SB 819 initiatives were being mismanaged.”

The lawsuit goes on to claim that after Watkins sent a Teams message to her supervisors, asking for a meeting to discuss the mismanaged funds, “rather than set a meeting, [Watkins] was terminated.”

The reason stated for her termination was “'communication issues,'” and a “’lack of productivity,’” the lawsuit claims.

A spokesperson for the Oregon Department of Education told KOIN 6 News the agency does not comment on pending litigation.

In a statement to KOIN 6 News on Tuesday, an attorney representing Watkins said, “We believe our client's complaint sets out her position very well. My client was wrongfully terminated after bringing her concerns to light and opposing wrongful treatment of herself and her staff. Nobody should have to go through that.”