Federal Funds Diverted from Teachers to Tackle Debt at Isaac School District, County Treasurer Reveals

PHOENIX — A significant financial crisis has surfaced in a west Phoenix school district, where federal funding will be allocated to service existing debts rather than cover teacher salaries. This revelation comes from the Maricopa County Treasurer’s Office, as reported by 12News.

Recently, the district encountered a budget shortfall amounting to approximately $28 million. The dire financial circumstances could jeopardize the positions of numerous teachers and staff, affecting around 6,000 students who may have no choice but to transfer to other schools.

Arizona State Board of Education Member Jason Catanese expressed deep concern over the emotional toll on students and educators, stating, “This morning, I witnessed something that no educator should ever have to see—students and staff in tears, worried about their futures.”

On Monday, Arizona Superintendent of Public Instruction Tom Horne announced a federal allocation of $6 million in Elementary and Secondary School Emergency Relief funding intended to support the district amid its ongoing hardship. However, the county treasurer’s office clarified that these funds would be used to mitigate the district’s existing debts instead.

Jordan Dale, Chief of Staff at the treasurer’s office, outlined the necessity for the district to address its financial deficits before applying those funds elsewhere. “The district must demonstrate the ability to offset its existing fund deficits before subsequent expenses can be honored,” he noted in an email to 12News.

The Isaac School District, which has expressed gratitude for state support, highlighted the need for legislative backing to redirect these funds toward teacher salaries. “The $6 million reimbursement will undoubtedly provide significant relief,” the district said. “However, legislative support remains critical.”

At the Arizona State Capitol, the Arizona Education Association President Marisol Garcia joined fellow educators to rally for the district’s future. “We’re here today because the clock keeps ticking,” she declared, emphasizing the anxiety surrounding potential payroll disruptions.

As concerns continue to mount, the Isaac School District was recently placed into receivership and operates twelve schools across west-northwest Phoenix. “We need your help,” Catanese pleaded, urging immediate legislative action to secure the future of the schools and their communities.

In light of the ongoing crisis, the district has also announced the temporary cancellation of before and after-school care programs, stating, “We regret to inform you that the Isaac Learning Club will be canceled from January 27 to January 31, 2025, due to staffing challenges.” This decision underscores the escalating uncertainty faced by educators and families alike.

Teachers plan to continue their work this week, but future paychecks remain uncertain. Decisions regarding pay and program operations will be addressed following an upcoming meeting set for Tuesday evening.

This situation highlights the pressing need for comprehensive solutions to safeguard educational institutions, staff, and students in these challenging times.