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Arizona Republicans Call For Investigation Into Financial Crisis At Isaac School District

January 30, 2025

By Daniel Stefanski |

Arizona Republicans are reacting to a financial crisis involving a local school district and calling for serious investigations into the developing matter.

This week, a number of Republicans in both the Arizona House of Representatives and Senate released statements about the situation surrounding Isaac Elementary School District being placed in receivership by the Arizona State Board of Education. Some legislators are even looking to the Maricopa County Attorney to investigate the school district if the state’s attorney general does not spring into action.

House Speaker Steve Montenegro said, “Our sympathies begin and end with the students, faculty, and parents of Isaac. At the heart of this crisis are more than 4,800 students and hundreds of employees who have been abandoned by failed district leadership. The falsification of financial records and the mismanagement of public funds are a betrayal of trust and must be investigated immediately. The people of Arizona deserve to know how this happened, and those responsible must be held accountable.”

Senator David Farnsworth, the Chair of the Education Committee, added, “I’m incredibly concerned by what’s transpired within the Isaac Elementary School District. My colleagues in both the Senate and House are investigating what led to the tremendous overspending and what legislative reforms we need to adopt to make certain a similar situation doesn’t happen in the future. What the State of Arizona won’t do is provide this school district a financial bailout without implementing any corrective policies. Doing so would only be a Band Aid on the wound and most certainly do more harm than good.”

Senator Carine Werner, a first-term legislator and the Vice Chair of the Education Committee, wrote, “My heart goes out to the teachers and staff of Isaac Elementary School District, many of whom are already living paycheck to paycheck and are now fearing the money isn’t going to hit their bank accounts come pay day because of the gross financial mismanagement by administrators within this district. We are working on solutions to ensure the children of these schools are not disrupted in their learning environments and those responsible are held accountable.”

Arizona House Majority Leader Michael Carbone stated, “Since taking office, Mayes has shown zero interest in tackling corruption in school districts. Instead, she has used her office to attack parents who use Empowerment Scholarship Accounts to seek better opportunities for their children. This is the same Attorney General who dropped all felony charges against a former Scottsdale Unified Superintendent engaged in a laundry list of fraudulent schemes at multiple school districts. Amazingly, Mayes only required the former administrator to pay income taxes on illegal kickbacks the administrator received – a sweetheart settlement for the ages. The students in Isaac deserve better.”

In their letter sent to Maricopa County Attorney Rachel Mitchell, Arizona House Republican leadership wrote, “In late December, the Arizona Auditor General sounded the alarm over the possibility of a receivership and noted that the Isaac Elementary School District has been identified as one of Arizona’s highest-risk districts since December 2020. The Auditor General has also reported that ‘[t]hroughout FY 2024, the District failed to report expenditures in the appropriate funds throughout the year and submitted a misleading and inaccurate FY 2024 annual financial report’ to the Arizona Department of Education. And in another report documenting multiple deficiencies in Fiscal Year 2023, the Auditor General noted potential conflict of interest issues, miscoded financial transactions, incomplete financial records and documentation, failures to deposit cash in a timely manner, and failures to provide training and guidance related to restrictions on accepting gifts or benefits.”

The House Republicans asked Mitchell to confirm an investigation into the Isaac Elementary School District matter because they lack confidence that Mayes would “fully and fairly investigate the school district’s leadership over these serious issues.”

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.

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