Bill Calls for Mass Resignations in Fiscally Troubled School Districts

House Bill HB2610 has passed both chambers of the Arizona Legislature, garnering mostly Republican support. The bill mandates the resignation of school board members if their district enters receivership.

The Senate voted 18-10 in favor on May 28, primarily in response to the State Board of Education placing Isaac School District under receivership earlier this year due to overspending exceeding $20 million.

Keith Kenny, assigned as the district’s receiver, reported significant financial mismanagement. His findings include the failure to secure federal Covid reimbursements, high labor costs, and loss of student membership as primary contributors to the district’s budget crisis.

In an effort to address this shortfall, the State Board closed two elementary schools and terminated 26 district-level employees. Kenny predicts it will take five to ten years for the district to regain financial stability.

The bill’s retroactive clause affects the entire governing board of Isaac, should it become law. Additionally, it stipulates that district superintendents must be dismissed for cause if a district is placed into receivership.

Opponents argue the bill raises constitutional issues by removing elected officials without voter input. Senator Flavio Bravo, a Democrat from Phoenix, criticized the legislation as an act of political retribution.

Democratic leaders have called for accountability in the district’s financial practices but advocate for an investigation led by Attorney General Kris Mayes instead of the measures proposed in HB2610. Some Democrats from the Tolleson area, however, support the bill.

To mitigate the financial crisis, Isaac School District partnered with Tolleson Union High School District in January, leasing Isaac Middle School for $25 million for 12 years. This agreement aims to ensure continued operations and staff salaries.

Senator Eva Diaz, representing the area, expressed concerns that her constituents were overlooked in this transaction. The proposed HB2610 seeks to nullify the real estate agreement, preventing multiple transactions involving the same parties in a 12-month period.

Patricia Jimenez, the President of Isaac’s Governing Board, suggests the bill is a targeted attempt to oust her and her colleagues. Having served on the board for 22 years, she contends that the legislation violates voter rights by circumventing due process.

Jimenez warns that HB2610 would leave many elected positions vacant without just cause and infringe upon the civil rights of the board members. The proposed law requires new appointees to be selected by a county school superintendent, followed by special elections for replacement board members.

Board members could submit a waiver if they can prove they did not engage in fiscal misconduct. Senator Lauren Kuby voiced further concerns about the potential for a partisan county superintendent to influence board membership, stressing the importance of community representation.

The bill is set to return to the House for a final reading after amendments from the Senate. The House is currently in recess until June 4.