By Matthew Holloway |
Tolleson Union High School District Superintendent Jeremy Calles found himself the subject of intense grilling at the hands of Joint Legislative Audit Committee (JLAC) Co-Chairmen Matt Gress and Mark Finchem during a three-hour hearing this week. Following the exchange, Gress told reporters that he and Finchem “will be reviewing our options with the Auditor General.”
The fiery hearing came about in response to concerns over a Tolleson Union High School District (TUHSD) leaseback deal with the Isaac Elementary School District that would see TUHSD purchase Isaac Middle School for $25 million with the elementary district then leasing the building at an interest rate of 6%.
Calles revealed in the hearing that he holds two professional roles, one as a consultant and the second as Superintendent, and he confirmed to the committee that initial conversations on the deal began in his role as a consultant.
He told the JLAC, “The first conversation I had came from a text message from, yes, the prior superintendent, Mr. Mario Ventura, who texted me and asked if I could take a look at his finances.”
Calles explained that when his district became involved, his role in the deal changed, although he claimed to have never billed for the conversation and never contracted with Isaac Elementary School District as a consultation client.
“This is not a new concept; the only thing novel on this idea is that both sides of the transaction, you have a school district. Everything else about this transaction, both sides of the transaction are not unseen,” he told lawmakers.
The Superintendent said that the agreement between the districts lacked a prepayment penalty, had no lock-in requirement, and aided the district in a financial crisis. He suggested that the benefit for TUHSD students was in generating up to $7 million in funding for the district. However, committee members balked at this suggestion, noting that although the district holds a “B” letter grade from the Arizona State Board of Education, only 30% of its students are proficient in Mathematics, English, and Language Arts.
Gress challenged him, “Here, you have not been able to demonstrate the $25 million financial transaction benefiting Tolleson Union students directly, given that you have no square footage, you’re not providing any learning services. It’s not even in your district so this is far beyond novel. I think you’ve made a mockery of our state law.”
He added, “I think you should be ashamed of yourself for the way you’ve mistreated taxpayers of Tolleson Union.”
The Superintendent was later asked by Rep. Carbone, “Why doesn’t every school district now just follow your lead and start making money and become a bank?”
In a reponse that appeared to show defiance, he said, “I don’t think every school district has a superintendent willing to stand in front of you like this.”
As reported by State 48 News, Calles confirmed that he utilizes his district office to conduct personal business during working hours. The outlet noted that under questioning it was further revealed that two members of the school district are also employed by the Superintendent through his consultancy.
When pressed to answer questions from Tolleson City Manager Reyes Medrano Jr., along with Police Chief Rudy Mendoza and former Superintendent Kino Flores regarding his conduct, including an alleged request for Tolleson to pay Calles’ real estate broker an $85,000 fee related to the district’s purchase of city land, Medrano suggested this violated state procurement laws.
“The 85 was going to be on top of the purchase price, and then we were supposed to pay the broker with it,” he told the committee. According to Medrano, Calles told him “it would be cleaner” to do so.
Calles lashed out in response, claiming the allegation “borderlines defamation.” He said in full: “I believe that borderlines defamation, the way he made that implication as if something nefarious was happening.”
Speaking with a reporter, Calles rejected the allegations saying that “they’re all lies. Do you see our improvement on the letter grade system? You see that our schools are moving up on their performance?”
The Superintendent told 12News that he expected the committee to request review of his conduct by the Arizona Auditor General and said, “When the Auditor General’s Office finally sends me someone, I’ll give them the full story.”
In a statement following the hearing, Gress said, “The hearing today revealed deeply troubling information that shows a pattern of disregard for public transparency. Combining public service with private consulting work, including using Tolleson District facilities and employees to support superintendent Calles’s consulting company reeks of corruption. Chairman Finchem and I will be reviewing our options with the auditor general.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
