Friday, April 26, 2013

A Bombshell

The State of Illinois has cut off funding to the UNO Charter School system.  This is no small deal any way you examine it.  The state took this action as a result of insider deals with respect to $98 million in state grant funding.

Here's the deal...two firms owned by members of the d'Escoto family received $8.5 million in funding.  The owners of the companies are brothers of Miguel d'Escoto who use to be the No. 2 executive with UNO.  The IL. Department of Commerce and Economic Opportunity says it would not notified of what might be the appearance of a conflict of interest (familial relationship).  There were a number of grant agreements that called for notification in writing of any potential conflicts of interest.

I don't know the particulars of how this will shake out but I do know some of the immediate repercussions.

This certainly presents a potential black eye to the public in terms of their feelings towards UNO in particular and, perhaps, about charters in general.  Of course, the additional funding UNO was to receive is now cut off and it is hard to imagine their ability to obtain grants going forward.  Obviously, UNO has some explaining to do in terms of their past, current and future relationship with the companies in question.  It also remains to be seen how the current 13 UNO charters, and their staffs, along with parents and students, will react to this news.  And will IL politicians who have backed UNO continue to do so?

No doubt, there is more to come.

Dick

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