Highlands Charter files for bankruptcy in Sacramento after state audit
Sacramento's Highlands Community Charter filed for bankruptcy after a state audit cited 180 million dollars in misallocated funds. Classes remain open.
Highlands Community Charter and Technical Schools filed for bankruptcy in Sacramento on Monday. The move follows a state audit that cited 180 million dollars in misallocated funds. Leaders called the filing an extraordinary decision in a news release.
The network operates six locations in Sacramento. It provides adult education for students aged 22 and older. The school operates under the Twin Rivers Unified School District.
A 2025 California State Auditor report outlined a history of wasteful spending. State officials reported over 180 million dollars in inappropriately received funds. The audit cited a 1.2 million dollar San Diego hotel bill. It also listed a T-Mobile transaction over 1 million dollars.
Highlands disputed the 180 million dollar figure. School officials said the audit missed the full record of educated students.
No workable resolution has emerged that would allow Highlands to absorb the disputed $180 million state funding determination and continue serving students.
Highlands opened in 2014. Controvery followed soon. Whistleblowers, state audits and grand jury reports surfaced over the years.
A 2016 Sacramento County Civil Grand Jury report detailed a conflict of interest. That report involved a Twin Rivers Unified board member. The member allegedly joined Highlands board talks and signed a contract providing personal financial benefit.
Highlands stated it implemented 18 audit recommendations. Officials confirmed the school remains accredited.
Highlands today is not the Highlands of the past. The leadership structure that presided over the old Highlands is no longer in place.
Classes remain open for students. The California Department of Education acknowledged the filing but offered no further comment. The school district did not immediately respond to a request for comment.
Charter schools operate independently under public oversight. A bankruptcy filing allows an organization to restructure debts while legal challenges continue.
The network continues serving adult learners at its Sacramento sites.
