PHOENIX – Teachers at the crisis-hit Isaac School District in Phoenix will be getting paid.
In a statement released on Jan. 31, Arizona Superintendent of Public Instruction Tom Horne announced that sufficient funding to cover teacher payroll have been sent to the district by the Maricopa County Treasurer.
What Tom Horne Said:
“The crisis in the Isaac district is over, and the teachers are getting paid. I want to applaud them for their patience and heroism in continuing to do their jobs this week. I also want to thank County Treasurer John Allen for his statesmanship,” Horne wrote, in the statement.
District mired in financial crisis
Isaac School District, a district that serves students in parts of Phoenix through their network of 11 physical and online schools, has been in the news in recent weeks due to a mounting financial crisis that resulted in the district being placed under receivership by state education officials.
The backstory:
Officials with the Arizona Department of Education initially said the district is “somewhere between $12 million – $15 million underwater.”
Per a Dec. 31, 2024 letter sent to Superintendent of Public Instruction Tom Horne by Maricopa County School Superintendent Steve Watson, the district has a total overexpenditure of approximately $12.6 million.
Additionally, the letter states that Isaac School District has a negative balance of approximately $6.6 million in relation to a federal program that aims to provide discounted phone and internet services to eligible schools. The letter states the expenses would need to be “corrected to an appropriate fund” if the district does not have adequate financial claims to support the expenditures, which will increase the overspend even further.
In later statements, county officials said the district is $28 million in debt.
Prior to his announcement on Friday, Horne had said that the Feds released $6 million in old COVID-19 relief money for the district, but the state won’t hand it over until the county agrees to use it on payroll.
“They’re refusing to use the money for payroll. They say if we send them money, they’ll use it to pay back debt,” Horne previously said.
County officials have previously said that debt has to be paid off first, due to legal reasons.
The district’s superintendent, Mario Ventura, also resigned from his post. The resignation took effect on Jan. 30.
Other help also on the way
On Jan. 30, we reported that the Tolleson Union High School District is loaning $25 million to Isaac School District.
By the numbers:
Under the agreement, the Isaac Middle School property will be involved in a Lease-Purchase Agreement, at an interest rate of up to 6%, unless a default happens.
Local perspective:
Prior to the board’s vote, some Tolleson residents spoke out against the agreement.
“We shouldn’t be using our funds. Our funds should be spent in our schools, in our district. I empathize with the teachers, but their leadership is the one that’s at fault.”
“Our Tolleson students need to be protected, and the funds need to stay in Tolleson where they belong, where we made them and where they should continue to stay.”
State politicians launching investigation
Meanwhile, Arizona state legislators are demanding accountability, as the scale of Isaac’s financial woes become clear.
Republicans in the State Senate are launching an investigation into what they call “a tremendous amount of overspending.” One House Republican, State Rep. Matt Gress, has criticized the school district’s leadership.
“The district leadership engaged in some pretty appalling practices over the last several years, driving this district into the ground,” State Rep. Gress said.
Meanwhile, State House Speaker Steve Montenegro and State House Majority Leader Michael Carbone are asking for an immediate criminal investigation into the district’s Governing Board, Superintendent, and Chief Financial Officer. They want to know if any laws were broken, if illegal payments were made, monies were mismanaged, or there was any conflict of interest.
The two also sent a letter to Arizona Attorney General Kris Mayes that reads, in part:
“We were shocked to learn that you confirmed that you have no intention of investigating this school district, claiming that there is no evident warranting an investigation and chalking it all up to ‘mismanagement’ in a ‘poor school district.’ To be clear, mismanagement of public monies is precisely the type of conduct that justifies your office’s investigation.”
AG Mayes, in her response to Republicans, called their statement “inaccurate and misleading,” and said she is currently reviewing materials, and will determine if they warrant a criminal investigation.
