LITCHFIELD PARK, AZ — A year-long ABC15 investigation reveals questions about transparency in how some Arizona charter schools spend tax dollars.
Our reporting found that some charter school founders and board members can make money from these public schools in two ways. They receive a salary directly from the school, or they manage private companies that do business with the school. For some, it's both.
School Founders Sell Curriculum
Crown Charter School in Litchfield Park was founded by James Shade and T.C. Crownover, a married couple.
In response to a public records request, the school emailed ABC15 in June 2025 with "current" salaries. According to the email, Shade earned $158,000, and Crownover earned $160,000.
Crown Charter School enrolled 257 students during the 2025-26 school year, according to the Arizona Department of Education.
Crownover and Shade also have another business: Five Star Educational Research. Crownover was chairman and Shade was CEO of the California-based nonprofit company, according to an IRS Form 990 for the 2024-25 fiscal year.
Crown Charter School paid Five Star Educational Research $111,200 for curriculum in the 2024-2025 school year, according to the school's IRS 990 form for that year.
ABC15 emailed, called and visited the school in an effort to see the curriculum and to discuss the contract. Our questions remain unanswered.
State Rep. Nancy Gutierrez, D-District 18, said she is concerned about the differences in spending rules and financial transparency between district schools and charters across Arizona.
"It's all public tax dollars from Arizonans," Gutierrez said. "We should know where that money is going and how it's being spent, and I don't think that's an outrageous ask."
Gutierrez is a former teacher and a member of the Arizona House Education Committee,
While Gutierrez acknowledged that many charter school leaders are "great educators" who are "in it for the students," she also said there could be "a lot of money" in operating the schools.
"It's much more profitable if you own the charter and then you contract with maybe a family member that procures the sites or has the curriculum," Gutierrez said.
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Related-Party Transactions
An ABC15 check of charter school audit reports and tax filings statewide found many "related-party transactions" -- no-bid contracts involving companies owned by the charter school's board members, founders, or their relatives.
About 97 percent of Arizona charter schools have received exemptions from state procurement rules, which means charter schools must follow general accounting principles, but they do not need to have a competitive bidding process.
The related-party transactions still must be disclosed in annual audit reports for state regulators.
In Mesa, the Gaddie family founded Burke Basic School.
Michael Gaddie, the director of the 600-student school, received a $120,000 salary, during the 2023-24 school year, according to an emailed response to an ABC15 public records request.
A check of records from the Arizona Corporation Commission and Maricopa County Assessor shows the Gaddie family also manages the for-profit company that owns the school's property and buildings.
Burke Basic School leased the facilities for a combined $542,000 during the 2024-25 school year, according to the school's annual audit, which shows related-party transactions, sent to state regulators.
Jim Hall, the founder of Arizonans for Charter School Accountability, said it is common for charter schools to have lease agreements with private companies owned by related parties. He said the transactions are "completely legal." He also said the required audit reports leave out "tons" and are insufficient to provide transparency to the taxpayers.
"We lack all accountability because through that, when they own the building and they lease it back themselves, we have no idea if it's a legitimate expense or not."
ABC15 asked Michael Gaddie directly about the Burke Basic School lease. In an email, he said it was more than a fair price of $10 per square foot per year, with the playground and parking lot at no cost. Gaddie said a market comparison occurs every five years, and he said nearby commercial buildings are charging more — $14 to $19 per square foot per year.
Education Management Groups
In some cases, school founders also own or manage education management groups, private companies that run some school functions, or nearly all of them.
Shannon Ross, formerly known as Shannon Smith, co-founded Calibre Academy and Thrivepoint Alternative High Schools with her former husband, Timothy Smith. The schools enrolled about 2,100 total students statewide during the 2025-26 school year, according to Arizona Department of Education data.
Ross also manages Learning Matters Educational Group. The private, for-profit company provides curriculum, technology, and management services to Calibre, Thrivepoint, and charter schools in several other states.
In the 2024-25 school year, the Arizona charter schools -- Calibre Academy and Thrivepoint Alternative High Schools -- paid a combined $5.3 million in management fees to Learning Matters Educational Group, according to IRS Form 990 filings by the schools.
"We don't know what happens to the money once it's in that private corporation," Rep. Gutierrez said.
After seeing Learning Matters post photos on Instagram of a company retreat at a California seaside resort, ABC15 emailed questions to Ross, the Learning Matters corporate office, and both Arizona schools. We asked about the contract and how pass-through tax dollars are being spent.
Ross did not respond directly. Instead, we received a statement from Calibre's school principal.
The statement said in part:
"These contracts are fully in accordance with state law and are assessed and approved by independent boards of directors. Additionally, Calibre and Thrivepoint are each in good standing with their charter authorizer and regulatory body -- the Arizona State Board for Charter Schools."
Flexibility to Thrive
Jake Logan, president and CEO of the Arizona Charter Schools Association, said financial flexibility was intended by the state government.
"I think it allows for that innovation and that creativity to float so they can design the school however they see fit," Logan said.
Logan explained that, in addition to their annual audit, charter schools must pass their budgets in public meetings.
State regulators also require charter school governing boards to follow Arizona's conflict-of-interest laws, comply with generally accepted accounting principles, and have policies to ensure purchases and contracts are in the best interest of the school.
Logan also points out that if a charter school doesn't meet financial viability requirements, or if students don't meet academic standards, state regulators can force the school to close.
"I think over the 30 years we've had charter schools in Arizona, they demonstrated really good work by and large," Logan said.
In 2025, Calibre was A-rated. Thrivepoint campuses received a B-grade. Crown School was also B-rated. Burke Basic School had a C-rating, according to Arizona Department of Education school letter grades for the 2024-25 school year.
Got a News Tip? You can reach ABC15 Senior Investigator Melissa Blasius by email at melissa.blasius@abc15.com or call 602-803-2506. Follow her on X @MelissaBlasius , Instagram, and Facebook.
