The York City School District's connections to a for-profit alternative education provider "does not appear" to be a conflict of interest that would jeopardize state funding, according to a letter sent Thursday from the state Department of Education.

The department opened an investigation in February to determine whether it was a conflict of interest for Supt. Tresa Diggs and former board President Jeffery Kirkland to have connections to Mission Home Education & Counseling Services, a private alternative education provider that contracts with the district.

Kirkland works as a counselor/agency contact at Mission Home, and Diggs' husband, Jimmy Spells, is Mission Home's director of community and program presentations.

"I felt all along I would be vindicated, and I am happy that I have been," Diggs said after reviewing the letter Friday.

The letter, signed by state Secretary of Education Gerald L. Zahorchak, says the district provided evidence Kirkland abstained from voting on matters regarding Mission Home, and Diggs did not have involvement in placing students there. It also notes Kirkland is no longer on the school board, and Diggs is set to retire this year.

"Moving forward, we recommend that the district pays careful attention to any conflicts of interest, or the appearance thereof, with regard to Mission Home and all other entities with which (it is) contracting," the letter reads.

Mission Home is one of three private alternative education providers
the district contracts with to educate and counsel students who are deemed too dangerous or troubled for the regular classroom.

In September 2006, the district submitted a plan to move most of the alternative education students into an in-house program on Duke Street in an effort to save more than $1.8 million that year.

The district received a $2 million state grant -- that Kirkland and Diggs signed for -- to move the majority of alternative education students to

Letter from state to city schools (click to read)
Duke Street for the 2006-2007 school year, according to paperwork obtained through a Right to Know request.

But the district continued to send most of these students to private providers that year, spending more than $2.4 million on private education providers. It had budgeted $835,200.

There was a lack of supplies and staffing problems at Duke Street so students were sent to outside agencies, district officials said.

The district sent more than half of the alternative education students -- and about $1.6 million -- to Mission Home.

When the state Department of Education said it was investigating a conflict of interest earlier this year, both Diggs and Kirkland denied one existed.

Kirkland, who did not seek re-election last year, said at the time he signed for the $2 million state grant because it was his duty as board president. He could not be reached for comment Friday.

"I tried to tell everybody that it wasn't a conflict of interest," Spells said. "Unfortunately, there are some people out there . . . you might as well be talking to a tree."

Tom Foust, vice president of the school board, said that Kirkland and Diggs always removed themselves from conversations and votes regarding Mission Home.

"They did not take advantage of that for their personal financial gain," Foust said. "I am glad the state agreed with that assessment."

ndobo@ydr.com; 771-2032

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To read a copy of the state Department of Education's letter to the York City School District go to www.ydr.com and follow links to this story.