Isaac School District receivership: AZ, county officials point fingers as superintendent resigns

Last week, the state Board of Education put Phoenix’s Isaac School District under receivership as it faces a massive budget shortfall.

Now, state and county officials are pointing fingers at each other over who’s responsible for providing the district emergency funding.

The Arizona Department of Education estimates the district is facing a budget shortfall between $12 million and $15 million. That’s why someone will be appointed to oversee its finances.

Attorney General Kris Mayes sent a letter to the Maricopa County Board of Supervisors this week, asking it to continue critical payments for the district. Gov. Katie Hobbs also urged the board to grant additional flexibility to mitigate the impact on students and teachers.

"At the state Board of Education hearing, the Maricopa County Treasurer stated that he would stop fulfilling warrant requests after Jan. 21, limiting the district’s ability to maintain cashflow and pay critical expenditures including payroll," Hobbs wrote. "This has created significant uncertainty about whether the district will be able to make upcoming payments and maintain operations."

But Maricopa County board chairman Thomas Galvin sent out a statement saying the board’s hands are tied. He wrote:

"Maricopa County shares the community’s concern for the students, teachers, and staff of Issac Elementary School District #5.

Education is a state function under the Arizona Constitution, and counties are not authorized to provide a solution to the financial mismanagement of a school district. The County has communicated this to Superintendent Horne and his staff. We are not aware of a statute mandating the Board of Supervisors instruct the Treasurer to continue issuing loans to insolvent school districts. The County has met with the receiver and understands the cash flow issue makes this case unique, but a solution will require the State to take legal and financial actions."

Following that statement, Superintendent of Public Instruction Tom Horne told KJZZ News:

“We’re working on everything we can think of," Horne wrote. "We cannot let the district fail and leave 5,000 students without any place to get an education. This is my partners’ first priority right now and I’m working hard on it.”

Meanwhile, the the superintendent of Isaac School District, Mario Ventura, announced his resignation at a governing board meeting Thursday. He said the district’s financial situation and resulting receivership weigh heavily on his conscience.

“The financial mismanagement that has led us to this point requires accountability of district leadership, including my own," Ventura said. "While I have always strived to act in the best interest of our students and community, I recognize that the ultimate responsibility for oversight and decision making rests with the superintendent.”

Ventura did not give a date for his departure from the district.