Troopers say Sandra Taggart of Livingston Manor in northern Sullivan County was arrested Thursday and charged with grand larceny and falsifying business records.
Authorities say an investigation was launched in February after state police were told that money was missing from an account holding funds raised by the Livingston Manor Central School class of 2015. Officials say Taggart was the class adviser in charge of managing the funds.
Taggart has been a teacher at Livingston Manor since 1998, most recently as a special education teacher in the high school.
It wasn't clear if she had a lawyer.