Lawmakers say LOFT did not investigate several concerns over OSDE, Walters

OKLAHOMA CITY (KFOR) — Some Oklahoma lawmakers say a Legislative Office of Fiscal Transparency (LOFT) investigation released Tuesday did not look in to several key issues that still leave them with questions over State Superintendent Ryan Walters’ ability to effectively lead the department.   

On Tuesday, LOFT released findings for an expedited investigation it conducted into how OSDE handled its finances in several, select cases.

Specifically, the investigation looked into OSDE’s handling of a state funding program for school resource officers and security enhancements, Title I funding, maternity leave funding, funding for emergency asthma inhalers and funding for teacher pay raises at certain “off-formula” schools.

The LOFT investigation concluded OSDE leaders did not commit any criminal wrongdoing but failed to adequately communicate with school districts and legislators about those funding programs, causing funding delays and confusion.

The origins of the LOFT investigation date back to August, when a News 4 report revealed OSDE was trying to deprive schools of safety and security funds OSDE previously told the schools they would be allowed to roll over from on year to the next.

That finding led State Rep. Mark McBride (R-Moore) to question whether State Superintendent Ryan Walters could effectively lead OSDE.

“I hate to use the word impeachment, but I think we’re getting to that point,” McBride told News 4 in August.

To find out if things were truly to that point, McBride called for an all-encompassing house investigation into OSDE.

He wrote a letter to House Speaker Charles McCall (R-Atoka) urging him to open an investigation.

More than two dozen house republicans signed on to McBride’s letter in support.

But, Speaker McCall said he wouldn’t consider it unless at least 59 republicans signed on, or if Walters were convicted of a crime.

However, shortly after that, McCall approved the Legislative Office of Fiscal Transparency (LOFT) to open its own, much more limited investigation into OSDE’s handling of funds on five specific issues lawmakers had concerns about.

Those issues included school safety and security funds, emergency asthma inhaler funds, Title I funds, funding for teacher pay raises at “off formula schools” and maternity leave funding.

LOFT wrapped up the investigation with a hearing on Tuesday, announcing no findings of criminal wrongdoing on OSDE’s part, but concluding OSDE leadership had major communication failures that led to confusion and delays over funds for those programs.   

After the hearing, Walters claimed vindication.

“Look, the people of Oklahoma see through it,” Walters told reporters. “They see how absurd this is. And so the whole thing is built on a lie.”

As for McBride, he says LOFT’s limited investigation did not touch on questions he wanted answered in order to determine if legislators should take further action against Walters.

“I was wanting to investigate more,” McBride said. “I still think there needs to be some accountability on the travel.”

Earlier this year, News 4 uncovered records showing Walters and his top advisors are spending tens of thousands of taxpayer dollars on our of state trips for media appearances, partisan events and retreats.

News 4 reported, when McBride asked OSDE for those same records, he didn’t get them.

“There's a subpoena, I requested that information, I got two little sentences,” McBride said. “And in your reporting, you got 40 something pages of information about the problem. So I think there's a problem there.”

But the LOFT investigation released Tuesday didn’t look in to Walters and other OSDE leaders’ travel spending at all.

“I just felt like there were enough there were not enough areas that were reviewed by loft,” said State Rep. Meloyde Blancett (D-Tulsa).

Blancett says she shares McBride’s concerns on OSDE’s travel spending, and also has concerns with OSDE’s rising stack of legal bills.

Records obtained by News 4  show OSDE spent more than $140,000 on attorneys to defend lawsuits between March and July.

Blancett and other legislators have previously raised concerns over the spending, but the LOFT investigation did not look into it.

“I do think it is our responsibility to make sure that the resources of the state are being used wisely,” she said.

Blancett says she sent a letter to LOFT Committee Chair Rep. Kevin Wallace (R-Wellston) last week asking for LOFT to expand its investigation to include OSDE travel spending and legal spending concerns, as well as concerns she has over the state’s rollout of its Parental Choice Tax Credit system for private school students.

Blancett said Wallace told her there would not be enough time to add those topics to the investigation in time for its release Tuesday.

With that in mind, Blancett says LOFT needs to open a new investigation to include those and other concerns not addressed by the one released Tuesday.

“I see no reason why there cannot be an expansion of their scope of work that happens between now and the end of the year,” Blancett said. “The only reason is because that we've got an election coming up. And I think that there is a lot of political rhetoric around asking additional questions.”

Blancett says, with the questions that she, McBride, and other legislators still have unanswered, they don’t have enough information to determine whether Walters is still fit for his role.

“No one has access to all the information,” Blancett said. “And so the speculation is off the charts. We've got to get to a point where we can just get factual answers and end the speculation.”