Crisis Bill for Struggling School Districts Heads to Hobbs

Gov. Katie Hobbs faces a critical decision regarding House Bill 2610, which proposes the removal of an entire school board in response to severe financial mismanagement within the Isaac School District.

The Arizona House has finalized the measure after the State Board of Education placed Isaac Elementary School District into receivership due to a staggering budget deficit exceeding $20 million.

If enacted, the legislation mandates the termination of the superintendent and the immediate vacating of seats by board members within 31 days of receivership designation.

The bill garnered a 39-20 approval in its final House reading, with six Democrats supporting it, and has now been transmitted to Governor Hobbs for her signature.

Rep. Matt Gress, R-Phoenix and the bill’s sponsor, expressed his satisfaction with the bipartisan support, emphasizing accountability for school boards that fail to manage their districts effectively.

Notably, the bill is retroactive to January 1, allowing for potential immediate board member removals.

During a recent Joint Legislative Audit Committee meeting, Gress raised concerns over a marketing contract worth $88,000, involving the boyfriend of board President Patricia Jimenez, indicating potential ethical violations.

Opposition to HB2610 primarily stems from Democratic leadership, including Rep. Nancy Gutierrez, D-Tucson, who argues that the legislation undermines the democratic process by displacing elected officials.

“These are publicly elected individuals. The voters should determine their fate, not the Legislature,” Gutierrez stated.

The bill would empower county school superintendents to appoint board members to fill vacancies caused by receivership. In this scenario, Maricopa County Superintendent Shelli Boggs, a Republican, would appoint members for a district with a predominantly Democratic electorate.

In an effort to stabilize finances, Isaac school officials engaged in a $25 million agreement with Tolleson Union High School, granting leasehold rights over Isaac Middle School.

Gress criticized this arrangement as a “predatory loan,” fearing it would impose higher taxes on Isaac residents in the long term.

Additionally, HB2610 would prohibit school boards from entering similar real estate transactions in the future.

The audit committee sought insights from Tolleson’s Governing Board President Leezah Sun and Superintendent Jeremy Calles but expressed frustration at their absence from discussions.

“We don’t play this game with attorneys,” Finchem said, stressing the need for accountability.

While Reps. Lupe Contreras and Elda Luna-Nájera, both Democrats representing the Tolleson area, supported the bill, Sen. Eva Diaz highlighted constituents’ concerns regarding the district’s contract.

Rep. Lydia Hernandez, D-Phoenix, also endorsed HB2610 but voiced dissatisfaction with the overall handling of the district’s issues at the state level. “Mismanagement is not being dealt with, and I’m disheartened by the absence of political will to hold board members accountable,” she remarked.