PHOENIX — Both the Tolleson Union High School District and the Isaac Elementary School District governing boards held meetings Wednesday night to discuss a resolution amid Isaac School District's financial crisis.
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The agreement allows Tolleson Union High School District to lease land from the Isaac Elementary School District for the total principal amount of $25 million. Isaac School District will pay back the money over 12 years at a 6% interest rate.
Both districts agreed to the plan Wednesday night.
With the resolution, the Arizona State Board of Education’s executive director says the Isaac School District would receive the funding needed to keep the district open and functioning, as well as allow it to remain open for the remainder of the school year and into the future. Additionally, if the plan proceeds at its current timeline, the district may be able to meet payroll for Isaac's staff by Friday.
After the meetings, Arizona Education Association President and Isaac Teacher Marisol Garcia released the following statement:
“Isaac members, without pay, stood up for their students and for each other to get us to this agreement to keep Isaac schools open. While we’re encouraged by tonight’s vote, we will continue to wait for further communication from the receiver tomorrow. Isaac educators were told repeatedly that the crisis would never get to this point, so we’ll know it’s resolved when checks are in hand.”
On Monday, Superintendent of Public Instruction Tom Horne announced that Isaac Elementary School District will receive $6 million from the federal government to help cover at least the next three payrolls. The money would come from Elementary and Secondary School Emergency Relief (ESSER) money the district forfeited, Horne said.
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Horne said his department would do advance state aid to help cover payroll this week, however, he said the Maricopa County Treasurer’s Office would not let the money go toward payroll.
The Treasurer’s Office told ABC15 that the money would need to go toward debt saying, “The district must demonstrate the ability to offset its existing fund deficits and registered warrants before subsequent expenses can be honored. $6 million in ESSER money would reduce the district’s fund deficits, but they are still negative. We are waiting to hear the proposed solutions for offsetting the remaining fund deficits and registered warrants.”
On Tuesday, the House Education Committee voted unanimously to advance HB 2610, sponsored by chair Representative Matt Gress. The bill would direct the Maricopa County Treasurer’s Office to pay $2.5 million in warrants to cover payroll for districts in receivership as well as remove the district’s school board members.
As of Wednesday, HB 2610 has not been scheduled for the House floor, which then would need to go to the Senate and then be signed into law by Governor Katie Hobbs to go into effect immediately. This is supposed to be a temporary fix to help get Isaac School District staff paid this week.
All of this comes after the Arizona State Board of Education voted earlier this month to place Issac Elementary School District into a state receivership.
The district is estimated to be more than $28 million in debt. The Maricopa County Treasurer's Office says the district has $16.6 million in fund deficits, $3.9 million in registered warrants, and an additional $8 million in tax anticipation notes that are due for repayment in July this year.
