Legislature Launches Bold Initiative to Rescue Troubled School District’s Finances

A fiscal crisis is looming for the Isaac School District as it braces for the possibility of failing to issue paychecks to educators due to a staggering $28.5 million in debt owed to Maricopa County. The county treasurer, John Allen, has halted fund disbursement, citing potential violations of state law.

With payday looming for district staff, officials are scrambling for a legislative solution. The State Board of Education placed the district under receivership after discovering a significant budget overspend of $12 million.

In response to the crisis, Rep. Matt Gress from Scottsdale introduced a bill aimed at enabling county treasurers to issue $2.5 million in warrants, contingent on approval from the receiver. This amendment is part of a larger bill that mandates the removal of the district’s superintendent and school board members should the district fall under receivership.

Gress emphasized that this approach is only a stopgap measure, enough to cover a single pay period and buy time for a more sustainable solution. “There’s an immediate term challenge, which is keeping the lights on and keeping classes in session right now,” he noted, highlighting the urgency of the situation.

Democratic lawmakers are advocating for a more permanent resolution, with Rep. Quantá Crews voicing the need for a bill that ensures funding through the rest of the academic year.

While the district is seeing some relief courtesy of federal government funds returning an estimated $6 million in Elementary and Secondary Emergency Relief (ESSER), it remains insufficient. Superintendent Tom Horne has also proposed the potential availability of an additional $4 million in state aid, but these funds also require county treasurer approval.

The ongoing discussions between the district’s receiver and county officials underscore the dire fiscal environment. A letter by Allen and Maricopa County Board of Supervisors Chair Thomas Galvin reveals the district’s mounting challenges, stating that Isaac School District has no clear repayment plan for its substantial debt.

Allen and Galvin reiterated that any incoming funds must first address immediate debts, including nearly $4 million in registered warrants. This financial state calls for significant intervention from the state government, as highlighted in their communication.

In light of the fiscal mismanagement, Republican leadership is calling for a criminal investigation into the district’s practices, pointing to what they describe as a betrayal of public trust. House Speaker Steve Montenegro emphasized the need for accountability regarding mismanaged public funds.

On the other hand, Democrats have urged for a bipartisan approach to resolve the crisis without politicizing the urgent need for action. Rep. Cesar Aguilar underscored the cooperation from the Isaac school board and the necessity to expedite funding for the sake of students.

The pressure on local educators is mounting, as Marisol Garcia, president of the Arizona Education Association, expressed skepticism about timely legislative action. Discussions among teachers on whether to report to work are ongoing, with a focus on prioritizing student needs throughout the turmoil.

The special Education committee meeting scheduled for Tuesday at 2 p.m. will address Gress’s proposed bill, as the situation remains critical for the Isaac School District.