PHOENIX — Isaac School District teachers will be getting paid on Friday, according to education officials.
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State Superintendent of Public Instruction Tom Horne announced that sufficient funding to cover payroll for teachers in the Isaac Elementary School District has been sent from the Maricopa County Treasurer to the district, allowing district staff to be paid.
After a week of uncertainty & days without pay, staff at@isaacschools will get paid today, according to the district's receiver.
— Elenee Dao (@Elenee_Dao) January 31, 2025
With the $25M @TollesonUhsd & Isaac deal approved, the receiver will now be able to focus on getting the district out of receivership. @abc15 pic.twitter.com/xEKamnmE1y
“The crisis in the Isaac district is over and the teachers are getting paid. I want to applaud them for their patience and heroism in continuing to do their jobs this week,” Superintendent Horne said. “I also want to thank County Treasurer John Allen for his statesmanship.”
Earlier this week, 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.
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 be able to pay back the money over 12 years at a 6% interest rate. In turn, Tolleson Union could be making about $10 million off this deal if the Isaac School District takes all 12 years to pay it back. However, according to officials overseeing the Isaac School District, they hope to pay it before then.
Both districts agreed to the plan Wednesday night.
County officials said the Isaac Elementary School 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.
Before the agreement between the two school districts, federal officials agreed to send back $6 million to the Isaac School District, which the County Treasurer’s Office would use toward debt instead of payroll.
At first, it was unclear whether the district would be able to meet payroll for Isaac's staff by Friday. School staff were supposed to be paid earlier in the week, going to school for days without that pay.
With all agreements approved, the receiver will now be able to focus on getting the district out of receivership without having to worry about the crisis of getting educators paid.
“With this emergency funding issue resolved, we will re-focus on the much-needed cost cutting measures and looking to liquidate assets to resolve the financial issues at Isaac. I deeply appreciate the trust that the teachers, students and entire Isaac community has placed in me to help the school district address its financial and operational challenges,” Receiver Keith Kenny said in a statement.
