INDIANAPOLIS – Governor Holcomb is pledging closer oversight of charter schools after an audit uncovered millions of dollars in over payments to two virtual schools.

Holcomb says inflated enrollment figures appear to be, in his words, “out-and-out criminal.” The State Board of Accounts charges Indiana Virtual School and Indiana Virtual Pathways Academy raked in an extra 68-million dollars in state funding by padding their enrollment figures with students who hadn’t actually enrolled. The audit also questions an additional 86-million in purchase orders through contractors connected to the schools.

Holcomb says it should help when the Department of Education moves under the governor’s direct authority next year. He says people hold the governor responsible for education anyway, and says transferring the actual responsibility will allow more “nimble” action to respond to needs.

Holcomb says he hasn’t looked closely at a Democratic proposal to require a bond from charter school authorizers. Senate President Pro Tem Rod Bray (R-Martinsville) says senators are still studying whether that’s a worthwhile step. Bray says legislators passed a law last year designed to confirm enrollment figures, and the House has approved a provision this year authored by Indianapolis Democrat Ed DeLaney requiring virtual schools to track and report how much time their students spend on school activities.

Holcomb, Bray and House Speaker Brian Bosma (R-Indianapolis) all say they’ll donate any campaign contributions linked to the two virtual schools. Holcomb says his campaign is still tallying up how much that will be, with the total to be earmarked for education nonprofits. He says he hopes other officeholders will do the same, and says the administration will pursue reimbursement of the excess funding the audit identified.

Markle Senator Travis Holdman (R) did legal work for the schools until he ended that relationship last year.