Isaac School District to Sell School in Bold Move to Settle Debt

PHOENIX — The Isaac School District has secured its operational future by selling Isaac Middle School to the Tolleson Union High School District for $25 million. This strategic move comes after a unanimous 5-0 vote by the Isaac School District Governing Board and a supportive 4-0 vote from Tolleson officials.

This arrangement, termed a Sale and Lease Back Purchase, allows the Isaac School District a 12-year window to repurchase the middle school. Payments will occur biannually, with a goal to expedite repayment within two to three years, according to governing board president Patricia Jimenez. “We are very grateful to Tolleson High School for coming through to save us,” she added.

The Isaac School District will maintain its operational oversight of the middle school, ensuring continuity for students. Keith Kenny, the district’s state-appointed receiver responsible for financial decisions, highlighted the success of this agreement in navigating a challenging financial crisis. “This was the immediate solution to the crisis,” said Kenny, emphasizing that the district can continue operating through the current academic year.

Crucial to this deal was the approval from Isaac District voters last November, who narrowly voted to permit the sale, lease, or exchange of district property. President of the Arizona Education Association, Marisol Garcia, expressed cautious optimism following the vote, urging ongoing communication regarding the implementation of this agreement.

Financially, the $25 million sale covers a portion of the $28 million debt owed to the county treasurer. Federal support of approximately $6 million contributed to addressing this debt, but uncertainties regarding paychecks for Isaac teachers and staff loom, with one payment already missed.

During the concurrent Tolleson Union High School District meeting, residents voiced concerns over taxpayer money being used to rectify issues stemming from another district’s financial missteps. Board member Devin Del Palacio reassured attendees, emphasizing that this action would not detrimentally impact Tolleson students or staff, as the district retains over $70 million in reserve funds. “I do feel the greater reward is being able to help a neighbor in a time of crisis,” he stated.

Threats of closure had loomed over Isaac’s schools due to significant financial turmoil, leading to the district entering receivership and the resignation of its superintendent. The unfolding situation remains critical to the community.

This is a developing story. Stay connected for updates.