Gov. Hobbs vetoes bill to punish school officials who oversee financial crises

Gov. Katie Hobbs vetoed a bill designed to punish superintendents and board members if a school district goes bankrupt.

Rep. Matt Gress (R-Phoenix), the bill’s sponsor, said the legislation was inspired by the Isaac School District in Phoenix, which was put under receivership as it faced a more than $20 million deficit.

The bill would have required the removal of superintendents and board members if a school district is put under receivership by the State Board of Education. It would also bar those board members from holding office in the future.

“I think it puts the onus on the school board members to say, ‘I see something. I need to say something, because if I don’t, not only will I not be able to be the school board member, but my entire political career is over,’” Gress said.

The bill would have been retroactive to January of this year, meaning it could apply to Isaac’s superintendent and board members.

In a veto letter, Hobbs called the Isaac situation “unacceptable.”

But she said the legislation is an example of legislative overreach, arguing that removing an entire elected school board could create more chaos in districts already facing a crisis.

“This bill appears to seek broad retribution rather than providing targeted methods to address problems,” Hobbs said in a veto letter.