I don't believe there has ever been a school year when I wasn't teaching at least one board member's child. I've seen local boards make baseless, idiotic decisions and demonstrate the "I'm only on the board to get benefits for my child" syndrome. I've been asked by an administrator to change the grade of a board member's son, and instructed to "forget" that a board member's daughter stole a musical instrument, when the police report was filed.
I know there's plenty of room for malfeasance--not to mention outright educational incompetence--with local school boards. I've experienced it.