California county reports ‘egregiously serious’ findings in investigation over misuse of public funds

Santa Clara County in California, sometimes called the heart of Silicon Valley, is reeling from new results into complaints of public funds misuse under a previous school administration.

“Although the Santa Clara County District Attorney’s Office did not find enough evidence to charge anyone with a crime, independent investigators hired by (the county’s office of education) have made at least 14 serious findings,” reported the local NBC affiliate Nov. 17.

These included using public funds for personal purposes, redirecting grant funding “for purposes unrelated to the grant’s original purpose,” ignoring ethical safeguards and awarding contracts “in a manner that suggested personal favoritism versus public benefit,” the news outlet explained.

“All of those things are serious, egregiously serious to the work of a public agency,” said former board member John Di Salvo. “I was deeply disturbed by having my role eviscerated by the county superintendent by not being transparent, not answering queries from board members about budget, about staffing.”

Board defends ‘oversight role to safeguard students’ 

The investigation focuses on the county’s former superintendent of schools, Mary Ann Dewan, who was fired in October 2024. 

“(Complaints against Dewan) involve accusations of federal funds given to the county’s Head Start program that supports under-served young students, being used to help pay the salary of an unrelated employee,” the affiliate reports. “Dewan’s administration at the time called the issue ‘an accounting error.’” 

Dewan declined to be interviewed, but she sent a text message to journalists denying any misconduct. 

“The (county’s Office of Education) Board’s alleged findings are malicious and baseless attacks, unsupported by any evidence,” she wrote. “I have no knowledge of any wrongdoing and have fulfilled all of my duties fully within the statutory framework of my role.” 

She also accused the board of trying to suppress any opposition to its decisions. 

“It is deeply concerning that these actions appear aimed at silencing dissenting voices rather than fostering transparency and accountability,” she argued, noting she disagrees with proposed policy changes by the board. 

However, the board’s president, Maimona Afzal Berta, defended the findings and the board’s overall approach to decision-making. 

“These recommendations respond directly to the issues identified in the independent investigations,” she said. “Drawing on best practices from other public agencies, the proposed policies affirm the Board’s oversight role to safeguard students as a public education agency.” 

‘Systemic corruption’ often dismissed in public education’s financial scandals 

Santa Clara is not the only county wrestling with documented misuse of public-school funding.  

In another recent example, St. Louis Public Schools is working to address projected budget deficits after audits revealed former superintendent Keisha Scarlett had mismanaged public funds before being placed on leave in 2024. 

“Time and time again, you’ll see that the Board of Education can and must do a much better job of providing leadership and oversight for the district,” Missouri State Auditor Scott Fitzpatrick told journalists. 

He also described the district’s board as “asleep at the wheel and (allowing) Dr. Scarlett to abuse the system in the first place.” 

As previously reported by The Lion, public schools had drawn journalistic scrutiny for questionable financial practices even before the COVID-19 pandemic. 

For example, The Progressive magazine “found numerous instances of school purchases and personnel being steered toward decisions that rewarded opportunistic leaders and well-connected companies rather than students and teachers,” wrote Jeff Bryant. 

“Even though a number of such exposés suggest systemic corruption,” concluded Bryant, lead fellow of The Progressive’s Public Schools Advocate project, “media accounts generally frame these scandals as singular examples of corrupt behavior.”