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Ala. Education Official Quits Amid Federal Probe

By Associated Press

Montgomery, AL – The director of federal programs for Alabama's Department of Education has resigned amid an investigation into allegations that her husband's company profited from grant money she was in charge of distributing to school districts.

State schools Superintendent Joe Morton says Deann Stone resigned Oct. 5 as director of federal programs.

The U.S. Department of Education's inspector general's office has been investigating the state's process for distributing federal School Improvement Grant money.

The Birmingham News reported in July that three of the four Alabama school systems that were awarded first-round federal money for chronically failing schools had said they intended to use the firm Information Transport Solutions to guide their reforms. ITS's vice president is Stone's husband.

Stone has said she had nothing to do with selecting the systems that received grants.

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