Hobbs Rejects Controversial Bill Aimed at Struggling School Districts

Governor Katie Hobbs has vetoed House Bill 2610, a measure that aimed to force the removal of elected school board members if their district fell into receivership. This decision comes amid scrutiny surrounding the financial practices of the Isaac Elementary School District, which reported a budget overspend exceeding $20 million.

In her veto letter dated June 24, Hobbs criticized the bill, labeling it “blatant legislative overreach” that could lead to unnecessary disruption within school districts during critical times. The proposed legislation included a retroactive clause targeting the members of Isaac’s Governing Board.

Despite the veto, Hobbs expressed concern over the district’s financial mismanagement and urged the current leadership to resign. Both the Attorney General’s office and the state’s Auditor General are currently investigating the financial operations of Isaac Elementary School District.

In response to the veto, Isaac school board President Patricia Jimenez thanked the governor, arguing that the bill would have worsened the situation within the district. “The governor’s veto protects our community and allows us to focus on stability and the welfare of our students,” she stated.

Meanwhile, Republican lawmakers continue to question the financial management of the Isaac district. Specifically, concerns have been raised about a recent agreement with the Tolleson Union High School District aiming to resolve its budget deficit. Tolleson acquired leasehold rights over Isaac Middle School for $25 million, which it subsequently leased back at a 6% interest rate—terms that have been described by Rep. Matt Gress as “predatory.”

Gress has also scrutinized Jimenez’s leadership, particularly questioning a contract worth $88,000 awarded to Jimenez’s boyfriend for marketing services. Jimenez defended her actions, stating that the questioned invoice was a clerical error and firmly denying any unethical behavior.

Concerns about the agreement with Tolleson continue, as Gress and Sen. Mark Finchem have called for Tolleson officials to present at an upcoming Joint Legislative Audit Committee hearing. Previous invitations to the Superintendent and Governing Board President went unheeded, raising the possibility of further actions to compel attendance.