Is Highlands Community and Technical Schools still operating?

Yes, Highlands Community and Technical Schools remains open and continues to serve its students.

What were the main accusations against the school?

The school was accused of misspending $180 million by misstating attendance, hiring unqualified teachers, and engaging in nepotism.

Highlands Charter School Files for Bankruptcy Amid Misspending Allegations

A Sacramento charter school accused of misspending $180 million has filed for bankruptcy, citing a breakdown in negotiations over debt repayment. The school remains open and is seeking to relocate.

A Sacramento charter school accused of misspending $180 million has filed for bankruptcy, citing a breakdown in negotiations over debt repayment.

Flat illustration of Desk, Chair, Chalkboard, Filing cabinet, Dusty textbook

2026-10-06 · Updated 2026-10-06

Highlands Community and Technical Schools, which serves approximately 2,000 adults across six Sacramento-area campuses, has filed for bankruptcy. The move comes after the school was accused by the state last year of misspending $180 million.

School officials stated that the bankruptcy filing is intended to protect students and preserve the future of the schools. The reorganization process is seen as the best opportunity to continue operations while addressing disputed financial claims under court supervision.

The school is also pursuing a relocation to Sutter County under a new name, California Learning Academy, pending a decision from the Sutter County Board of Education. A previous request to expand into Yuba City Unified School District was denied in July.

The bankruptcy filing lists between 1,000 and 5,000 creditors, including the California Department of Education, which is demanding $243 million, and Twin Rivers Unified School District, which claims it is owed $2.4 million. Highlands disputes these claims.

The allegations stem from a 2025 State Auditor report that accused Highlands leadership of inflating attendance figures to collect state funds for non-existent students. The report also cited concerns about unqualified teachers and nepotism in hiring and contracting, along with questionable expenses such as a $1.2 million hotel bill and board trips to Paris and Hawaii.

Highlands reports that it has addressed 18 of the auditor's 19 recommendations, with an appeal pending on the remaining recommendation concerning alleged misuse of funds. The school has since replaced senior staff and is working to credential its teachers.

FAQ

Is Highlands Community and Technical Schools still operating?: Yes, Highlands Community and Technical Schools remains open and continues to serve its students.
What were the main accusations against the school?: The school was accused of misspending $180 million by misstating attendance, hiring unqualified teachers, and engaging in nepotism.