By Staff Reporter |
The superintendent of Tolleson Union High School District (TUHSD), Jeremy Calles, declined to show up to a legislative hearing to audit his district.
Instead, Calles had a notice of defamation claim served to the committee ahead of their hearing. State Representative Matt Gress, House Education Committee chairman and Joint Legislative Audit Committee vice chairman, explained that Calles filed the $150,000 defamation claim because lawmakers were holding the hearing.
Gress also said Calles wanted to charge him up to $28,000 for “basic” public records pertaining to the district’s finances. Gress requested those records in August following a separate committee hearing the previous month.
“This is a very unusual situation,” said Gress. “I’ve not seen a school district or any political subdivision of the state for that matter, be so antagonistic to the legislature’s constitutional authority and responsibility to investigate allegations of wrongdoing.”
Lawmakers held a joint audit committee hearing on Tuesday to discuss TUHSD finances under Calles.
TUHSD came under legislative scrutiny following a $25 million leaseback agreement to rescue the Isaac School District (ISD) at the start of this year — another district with allegations of financial mismanagement. Calles disclosed in the July hearing that initial conversations on the ISD deal began with the other role he holds as a consultant. Calles is the highest paid superintendent in the state.
Gress flagged the deal as potentially unlawful and challenged Attorney General Kris Mayes’ approval of the deal.
“This agreement raises glaring legal and financial red flags,” said Gress. “The Isaac School District has a long history of financial mismanagement, and now it’s relying on a last-minute bailout that may not even be legal. The Attorney General owes the public clear answers about how this deal was approved and whether it complies with state law.”
ISD was placed into receivership in January. Preliminary investigations into the district’s finances found it overspent nearly $30 million — mainly federal relief dollars during the COVID-19 pandemic — and falsified financial records.
Over the summer, Governor Katie Hobbs vetoed legislation inspired by ISD that would oust the school board of any district placed in receivership.
“[T]he financial mismanagement of the Isaac School District is unacceptable, and governing board leadership must take accountability and resign,” said Hobbs. “This bill appears to seek broad retribution rather than providing targeted methods to address problems. Mandating the upheaval of an entire elected school board is blatant legislative overreach that would create disruption and confusion for school districts during a time of crisis.”
Last November TUHSD spent nearly $77,000 on “luxury vacations” for its board members and administrators over the course of two days for just 30 people.
The bipartisan committee voted unanimously, 9-0, to audit TUHSD following testimony.
Felipe Mandurraga, who was a principal at Tolleson Union High School for eight years until he resigned following this spring semester, testified that Calles abused funding. One of Mandurraga’s allegations was that Calles handed out $20,000 vouchers to teachers without rules on their expenditure.
Apart from finances, Mandurraga also alleged TUHSD officials allowed a teacher in a relationship with a student to resign with full benefits without launching an investigation, filing a report with police, or reporting the incident to the Arizona State Board of Education (ASBE). Mandurraga further alleged the teacher in question was hired two weeks later by another district and has no pending complaints according to ASBE.
Mandurraga also alleged that Calles denied the removal of a student suspected of possessing a gun on campus; several months later, that same student was involved in a Phoenix shooting.
Calles denied knowledge of the alleged incident to members of the media.
The committee also heard testimony from the Citizens for Schools Accountability.
Auditor General Lindsay Perry said the audit would take until January 2027 to complete.
Last December, TUHSD placed Calles on paid leave amid tensions between himself and several board members. Months before, Calles had filed a formal sexual harassment complaint against then-Governing Board President and current State Representative Elda Luna-Najera.
An independent investigation by TUHSD found that Calles and Luna-Najera were in a consensual, sexual relationship. Calles filed a complaint of retaliation for his placement on paid leave.
In January, TUHSD paid Calles $450,000 to settle his complaints of sexual harassment and retaliation. TUHSD Governing Board President Leezah Sun read the statement announcing the settlement. Sun resigned from the state legislature last year to avoid expulsion after the House Ethics Committee found she violated ethics rules.
Prior to becoming TUHSD superintendent in 2023, Calles served as the district’s chief financial officer for six years.
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