Whistleblower Sues Oregon DOE Over $3.1M Misuse, Neglect of Students with Disabilities

A former Oregon Department of Education (ODE) employee claims the agency mishandled $3.1 million in state funding tied to Senate Bill 819, a 2023 law aimed at ensuring full school days for high-needs students.

Allison Watkins joined the ODE in November 2023 to manage the rollout of Senate Bill 819, which was designed to stop schools from placing students with disabilities on shortened school days without proper safeguards.

Allegations of Mismanagement and Hostile Work Environment

But in a lawsuit filed this week, Watkins claims the agency failed to prioritize the law and diverted the $3.1 million in funding to unrelated projects.

Watkins described the workplace environment as ‘toxic and hostile’ and says she was fired in August 2024 when she tried to address the problems.

Watkins seeking $780,000 in damages.

Senate Bill 819 prohibits schools from placing students on reduced schedules due to disability-related needs without parental consent.

The law requires schools to obtain written parental consent for reduced schedules, provide monthly opportunities for families to opt out, and be ready to offer full school days within five days if parents choose to revoke their consent.

The bill, championed by State Sen. Sara Gelser Blouin, was enacted immediately to address years of noncompliance with federal law. However, the first year of its enactment was far from smooth.

Disability advocates criticized ODE for insufficient oversight and reliance on district self-reporting rather than audits. In response, ODE officials have since announced plans to improve data collection and training for district schools.

Watkins’ lawsuit highlights internal turmoil at ODE, including frequent leadership changes and alleged hostility from supervisors Abby Wells and Tenneal Wetherell. Watkins claims her supervisors undermined her team’s work, reassigned staff to unrelated tasks despite SB 819 funding, and retaliated after she reported her concerns to human resources.

Watkins says tensions peaked in August 2024, when she attempted to address mismanagement with her supervisors but was fired for “lack of communication and productivity.”

Sen. Gelser Blouin expressed general concerns about ensuring policy funds are properly allocated, adding that transparency on ODE’s use of SB 819 funds is lacking.