The State Board of Education has voted to put Phoenix’s Isaac School District under receivership, meaning someone will be appointed to oversee and manage the district's operations, including finances, governance, and academic programs.
The decision comes as the district faces a massive budget shortfall.
Last summer, the Maricopa County School Superintendent's Office told the Arizona Department of Education it was concerned the district was over budget.
Isaac School District officials later submitted their annual financial report, which showed the district was not over budget. At this week's State Board of Education meeting, ADE Chief Financial Officer Tim McCain said district officials misrepresented their spending when they submitted that report.
“There were significant errors in the annual financial report (AFR) that included altering formulas within the AFR form and changing program codes within the accounting data so the AFR would not calculate those expenditures," McCain said.
State Board of Education Executive Director Sean Ross said the district later rectified it with a new report.
“Which now showed that Isaac School District was significantly over budget," Ross said. "In fact, the report was that they were $2.9 million dollars over budget in maintenance and operation and $9.3 million in unrestricted capital.”
An ADE spokesperson told KJZZ News that the county Board of Supervisors has been asked to meet as soon as possible to discuss ways to float funding to the district now that it's in receivership.
In a letter to parents, the district wrote in part: "We understand this decision may bring questions and concerns, and we are committed to keeping you informed throughout this process. We will share updates as we learn more about what receivership means for our district and its future."
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