Highlands Files for Bankruptcy Amid State Funding Dispute

Highlands Community Charter and Technical Schools has filed for Chapter 11 bankruptcy, saying court-supervised reorganization will help it stay open while it contests state repayment claims. The Sacramento-area network serves about 2,000 adult students, and classes will continue during the process. A 2025 state audit found roughly $186 million in ineligible funding and cited attendance, spending, hiring and oversight problems; the California Department of Education is claiming more than $243 million, while Twin Rivers Unified says it is owed $2.4 million. Highlands disputes the claims and says it has implemented the auditor’s recommendations. Its charter status remains contested after Twin Rivers appealed a decision overturning its revocation effort. Highlands is awaiting a Sutter County decision on a proposed charter under the name California Learning Academy, which it says would be separate from its Sacramento schools.