A Fairfax County School Board member accused of defrauding a company he is a part owner of out of more than $1.5 million has stepped away as chairman of the board’s budget committee.
Kyle McDaniel, an at-large representative, no longer oversees the committee, having willingly ceded the position to vice chair Rachna Sizemore Heizer in recent weeks, he confirmed to FFXnow.
The decision came as the budget process nears its end, McDaniel said, and with the need for him to place a greater focus on his current legal case.
“A couple of weeks ago I decided to pass the Budget Committee baton over to my very capable colleague so I can focus on this business dispute. I still serve on two board committees, and am a liaison to three other committees,” McDaniel said.
“That’s it. That’s the story. Anything else is gossip and conspiracy theory. I am looking forward to continuing to support our schools and community.”
The move flew under the radar, without a public announcement from McDaniel or the school board as a whole. McDaniel says that’s not uncommon, given how frequently board committees reshuffle.
According to McDaniel, Sizemore Heizer will hold the title of budget committee chair for only a few months until the school board makes new committee appointments during the summer.
McDaniel is facing a lawsuit initiated by his employer, Blue Label Aviation, which filed a civil complaint in Loudoun County in March alleging that he had embezzeled $175,000. The lawsuit was first reported by The Daily Wire, a conservative news outlet.
In its initial complaint, Blue Label Aviation claimed that McDaniel — who was employed as the company’s treasurer and secretary — had been charging personal expenses to the company’s credit card and bank account.
McDaniel was accused of racking up $120,000 in unauthorized expenses, misappropriating funds to cover family vacations, strip club visits and more, according to court documents.
The complaint says he later confessed to the company’s chief financial officer about the expenditures and made a roughly $50,000 payment in July 2024 to partially cover the costs.
However, that didn’t stop McDaniel’s spending, as an audit conducted later that year found his unauthorized tab had grown to $160,000, the complaint alleges.
An amended complaint filed in court earlier this month also accused McDaniel of fraudulently registering two of the company’s training aircraft in his own name in an attempt to sell them “for his own, personal gain.”
Blue Label Aviation has accused McDaniel of both embezzlement and fraud. The company is seeking a court judgment in the total amount of $1.675 million, as well as total punitive relief of $1.05 million.
Blue Label Aviation is also asking the court to let it take possession of the two aircraft registered by McDaniel.
A Herndon resident who worked as a policy director for Springfield District Supervisor Pat Herrity before shifting to the private sector, McDaniel was elected to the school board in 2023 and began serving as the budget committee chair in July 2024.
The change in the committee’s leadership comes as a challenging budget season for the county enters its final stretch. Last week, school board members pointed to a stabbing incident at West Potomac High School, as they argued that Fairfax County Public Schools needs additional funding to address safety concerns.
The Fairfax County Board of Supervisors will adopt a final budget for fiscal year 2026 on May 13, and the school board will then approve a budget for FCPS on May 22.
