Phoenix's Isaac School District receiver says 2 schools will close despite vote against move

Earlier this year, Phoenix’s Isaac School District was placed under state receivership as it faced a multimillion dollar cash deficit.

After 120 days, the state-appointed receiver has released a report of his findings and a financial improvement plan.

Some of the issues listed in the 26-page document were reported by KJZZ earlier this year, like the district’s failure to react when it was marked as high risk by the Arizona Auditor General over several years and its mismanagement of federal COVID-19 relief grants.

In a presentation to the Arizona State Board of Education, receiver Keith Kenny said ultimately, the district lacked the processes, procedures and controls necessary to prevent a financial crisis.

“We found the district encumbered in expended funds for these grants prior to getting approval by ADE and in some cases, those expenditures may never have been approved and would have already been spent," Kenny said.

Kenny said when he took over, the district was on the verge of overspending its budget again this year. He’s put together a multipart plan that includes the closure of two schools (Moya Elementary and PT Coe Elementary), despite the governing board’s vote against it.

“I’ve found the board to be irresponsible fiscally in voting not to close the two schools," Kenny said. "They haven’t learned to make the hard decisions that need to be made in the district.”

In an email to KJZZ, Governing Board President Patricia Jimenez said:

"It is certainly disappointing, especially given the board’s vote against it. We knew that the receiver ultimately had the authority to make these difficult decisions, but we advocated strongly for our students, staff, and families throughout the process. Our priority now is to support everyone affected by these changes and to ensure a smooth transition for our students."

She added that some students will be reassigned to other schools within the district. Others may move out of the district if their families choose to seek schools elsewhere.

In his presentation, Kenny said the district continued to see a decline in students while increasing its personnel and contracted services. His report says he believes it will take between five and 10 years to eliminate the debt and achieve solvency in the normal course of operations and eliminate the overspent funds.