Senate Bill Seeks to End Financial Abuses at Educational Collaboratives

Senator Jehlen Takes Action Against Financial Abuses at State Education Collaboratives; Senate Passes Reform Legislation to End Mismanagement

The Senate on Tuesday took decisive action to end mismanagement and financial abuses at the Commonwealth’s education collaboratives, which help teach children with special needs, Senator Patricia Jehlen announced. With a unanimous vote, the Senate passed legislation that establishes strict oversight and accountability of the state’s 30 institutions.

State officials and the public called for immediate action after investigations last year by the state auditor and inspector general uncovered a serious misuse of funding at the Merrimack Special Education Collaborative and other collaboratives around the state.

“The egregious conduct of a few cheated the Commonwealth’s children and taxpayers,” said Sen. Jehlen. “This legislation will ensure that such abuses never happen again.”

The legislation will improve the governance and fiscal accountability of the Commonwealth’s network of educational collaboratives by increasing transparency and setting clear standards to ensure that funding for the collaboratives will be used specifically for direct services to students.

The bill addresses the conflicts of interest surrounding collaboratives and their related nonprofit organizations, through which many of the abuses took place, and prohibits board members from receiving a salary and from serving in any official capacity at a related nonprofit organization.

It also establishes better oversight by requiring each board to prepare an annual financial report and conduct an independent audit, which will be made publicly available online. Related nonprofits must also submit annual audited financial statements to the Attorney General or the state education department. Furthermore the bill makes explicit that collaboratives are subject to the same competitive bidding requirements that school districts must follow when contracting for goods and services.

The bill now goes to the House of Representatives for further action.

– Submitted by State Senator Patricia Jehlen (D-Somerville, Medford)