Isaac School District: Concerns mount over teacher, staff pay as financial crisis continues

There are concerns that teachers and staff at a Phoenix school district are at the risk of losing pay or benefits, as the district's financial crisis continues.

We first reported on Isaac School District's troubles on Jan. 15. A day prior, the district was placed under a receivership by the Arizona State Board of Education.

Members of school district community expressed worries

On Jan. 23, the school district's governing board held a meeting to get an update on the district's receivership.

During the meeting, superintendent Mario Ventura announced his resignation and said he takes "full responsibility" for his role in helping make decisions for the district.

AEA President Marisol Garcia also spoke.

"As leaders in the union, we were unaware of the severity of this or we too would've been jumping in since this summer to try to find a resolution," she said.

Meanwhile, another meeting was held just outside Isaac Middle School, where speakers shared how devastating recent times have been for educators and families within the district.

What they're saying:

"This is not the fault of our community," said Savannah Galaviz-Tranguch. "We cannot be left without a school district for our students. When you say 5,000 students, those are 5,000 families. Those are 5,000 kids that need to be educated. They need to be fed. They need a safe place during the day. We understand that it is a financial crisis, but this is urgent. We urgently need the help. Students have no school within a few days. We cannot have these teachers without jobs. In five days, it would be a logistical nightmare for our community."

Maricopa County Board of Supervisors chairman Thomas Galvin

Galvin says the county is not connected to school funding and they are handcuffed to solve the financial issues facing the Isaac School District.

He instead called on state legislatures and Gov. Hobbs to call a special session or find other means to help save the school district.

"The blame most of all lies with the Superintendent of Schools who resigned last night, but also the school board," Galvin said. "They're elected and they've been serving in that office for many years. They are the ones who are stewards of those tax dollars. They're the ones who are supposed to manage the money. However, there's other officials at the state level who are supposed to make sure these people are on the up and up so it's an entire failure of the system and I really think the state leaders let them down."

Governor Katie Hobbs issues statement:

Arizona's governor weighed in on the issue, calling the situation a financial crisis.

She said that her office would help in finding a solution to ensure the students in the district can continue their education.

The statement reads in part as follows:

"The Isaac School District is currently facing a fiscal crisis that has the potential to disrupt the education of over 4,800 students and the employment of over 650 staff. I applaud the Arizona State Board of Education for moving at record speed to intervene and place the school district in financial receivership. Despite this intervention, the district faces a financial crisis that threatens the continuity of services for students midway through the school year.  At the State Board of Education hearing, the Maricopa County Treasurer stated that he would stop fulfilling warrant requests after January 21, limiting the district’s ability to maintain cashflow and pay critical expenditures including payroll. This has created significant uncertainty about whether the district will be able to make upcoming payments and maintain operations. I urge members of the Board of Supervisors to grant additional flexibility to the District in order to mitigate the impact on students and teachers in the middle school year."

Why is Isaac School District being placed under receivership?

The Arizona Department of Education said the school district is "somewhere between $12 million - $15 million underwater."

By the numbers:

Per a Dec. 31, 2024 letter sent to Superintendent of Public Instruction Tom Horne by Maricopa County School Superintendent Steve Watson, the district has a total overexpenditure of approximately $12.6 million.

Additionally, the letter states that Isaac School District has a negative balance of approximately $6.6 million in relation to a federal program that aims to provide discounted phone and internet services to eligible schools. The letter states the expenses would need to be "corrected to an appropriate fund" if the district does not have adequate financial claims to support the expenditures, which will increase the overspend even further.

Per the minutes from the state board of education meeting, the state board of education voted unanimously to place the district under receivership.

Featured

Arizona education board places Isaac School District in Phoenix under receivership: Here's what to know

On Jan. 14, the Arizona State Board of Education placed Isaac School District, which is located in the Phoenix area, under receivership. Here's what to know about school receiverships, as well as how it works.

EducationPhoenixNews