The Arizona State Board of Education (AZSBE) placed a Phoenix-area school district into receivership over mismanagement of funds.
Isaac Elementary School District (IESD) had a budget shortfall amounting to over $12.3 million, which included over $9.3 million in unrestricted capital and nearly $3 million in maintenance and operations.
In a special meeting held earlier this week, AZSBE voted unanimously to place IESD into receivership.
🚨🚨BREAKING NOW – EMERGENCY MEETING OF AZ STATE BOARD OF EDUCATION – BANKRUPT SCHOOL DISTRICT WITH $12,344,641 BUDGET SHORTFALL TO GO INTO RECEIVERSHIP ▶️ Auditor General presents SBE on timeline of overspending and refusals to comply with internal controls and financial… pic.twitter.com/CGCzhswztt
— TheLegalProcess (v3.0 | Instruction Not Therapy) (@ALegalProcess) January 14, 2025
The auditor general’s office reported during the special meeting that IESD remained among the highest risk districts since December 2020. IESD was also determined to present consistently high risks in change in weighted student count, budget limit reserve, and their financial position.
Despite five years of meetings with IESD to assist with improvements on its deficit general fund balance and loss in student-count-generated revenues, the auditor general’s office reported that their efforts failed to yield improvements.
In a letter to AZSBE last month, the auditor general reported that Maricopa County School Superintendent’s Office and ADE were unable to determine IESD overexpenditure amounts due to IESD submitting an annual financial report for the 2024 fiscal year that was “unreliable and inaccurate.” The auditor general further reported that IESD improperly moved millions of dollars in expenditures into certain funds lacking sufficient cash to support spending, causing those funds to report millions in deficits.
IESD Superintendent Mario Ventura said the auditor general’s findings were “shocking” to him and the school board. Ventura claimed that the 2024 fiscal year was the first time that their district had overspent. Ventura said that the loss of key personnel resulted in their overspending: the district’s grant specialist and two business managers. Ventura also claimed that the rush to spend federal relief funds caused the district to become lax on spending controls.
IESD argued in the special meeting that the outcome of November elections, specifically a proposed bond, could provide an alternative remedy to receivership.
The Arizona Department of Education (ADE) referred IESD to AZSBE for the funds mismanagement.
ADE submitted a letter to the Office of Elementary and Secondary Education last week advising that IESD failed to submit its completion report for federal COVID-19 relief funds by the end of December 2023. This resulted in IESD forfeiting nearly $8.9 million which they had spent but not requested reimbursement. Therefore, ADE petitioned the Department of Education to open the Coronavirus Response and Relief Supplemental Appropriations Elementary and Secondary School Emergency Relief funds to reimburse IESD.
“Because these expenditures were not reimbursed before the end of the liquidation period, the Isaac Elementary School District was required to find other sources of funds to cover these expenditures,” stated ADE Chief Financial Officer Tim McCain. “The overall result of this has been that the Isaac School District is in deep financial hardship that may result in teachers not being paid their salaries to instruct students in the school district.”
Maricopa County Treasurer John Allen warned that IESD staff and educators should deposit or cash any existing paychecks, expressing insecurity over the county’s ability to keep IESD schools open. Allen said that payments would stop in a week’s time.
“I don’t have the money,” said Allen. “It’s not a county responsibility to keep schools open, it’s a state responsibility. I wish I had better news from my office to the constituents of that district.”
Once appointed, a receiver will have 120 days to investigate and submit a report to AZSBE on how to improve IESD finances and a timeline for solvency.
IESD says its day-to-day operations will continue as usual under the receivership.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
Arizona Republicans are pressing pause over the latest proposal from the state’s Democrat governor.
On Friday, Governor Katie Hobbs released her Executive Budget for Fiscal Year 2026. In a statement that accompanied her announcement, Hobbs said, “To realize the Arizona Promise, we must deliver opportunity, security, and freedom for Arizonans. My Executive Budget reflects my commitment to continuing our strong economic growth, lowering costs, keeping communities safe and securing the border, and protecting Arizonans’ fundamental freedoms. We are connecting Arizonans to good jobs, lowering the costs of housing, child care and groceries, and protecting our veterans. I’ll continue being a strong steward of taxpayer dollars, cutting waste, fraud, and abuse and investing in the critical services that improve life for everyday Arizonans in every corner of our state.”
While Republicans had limited time to review the governor’s proposal, they did have initial thoughts about Hobbs’ latest budget for the state. Newly minted Speaker of the Arizona House of Representatives Steve Montenegro said, “While we share a commitment to improving the lives of Arizonans, the Governor’s budget proposal as presented raises concerns about parental choice, fiscal responsibility, public safety, economic growth, and the undue burdens it places on the backs of taxpayers. Our House Republican Majority remains focused on policies that support hardworking families, encourage job creation, and strengthen Arizona’s future. I look forward to working together on a serious and responsible budget that addresses these goals, but it’s clear that there is a long way to go.”
“While we share a commitment to improving the lives of Arizonans, the Governor’s budget proposal as presented raises concerns about parental choice, fiscal responsibility,… pic.twitter.com/SdBxcB0F0l
A spokesperson for the Arizona Senate Republicans told AZ Free News, “We share the same concerns about some of the same issues the Governor has raised in her budget proposal. However, the Governor’s solutions are going to be a burden to the taxpayer and won’t deliver results. Senate Republicans have a fiscally responsible budget that will ensure the core functions of government are funded, will provide relief to the taxpayer, and will ensure our state is not creating unsustainable government programs.”
The FY 2026 budget proposal from Hobbs represents the third installment from the Democrat governor in a divided state government with legislative Republicans. Over the past two years, Arizona Senate President Warren Petersen and his counterpart in the House of Representatives have forced Hobbs to make major concessions and ensured that key Republican priorities and interests were protected in the final budgets. Republican lawmakers will be counted upon again to stand strong against Governor Hobbs’ continued attempts to enact elements of her radical agenda on Arizona.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
Arizona schools received over 4,000 overdose kits this past week, contributing to the thousands they have and will continue to receive.
The Arizona Department of Education (ADE) supplied the Narcan kits through its School Training Overdose and Intelligence Taskforce (STOP-IT) initiative.
In a press release, State Superintendent of Public Instruction Tom Horne hailed the kits as “lifesaving,” and pledged for more to be coming.
“The results have been excellent and represent my ongoing commitment to the health and safety of school-aged children,” said Horne. “They are to be congratulated for doing a tremendous amount of work in a short time and getting tangible results that will help protect children. We are grateful to the 20 medical societies, government agencies and state programs that have signed a letter of support promoting the integration of STOP-IT resources into our schools.”
Apart from this latest installment, ADE has supplied about 4,400 kits to 144 education agencies across the state.
Horne launched STOP-IT last May to supply the kits to schools. Last November, ADE announced that it began deliveries of over 16,000 kits in coordination with the Arizona Department of Emergency & Military Affairs (DEMA).
Schools signed up for these Narcan overdose kits through ADE’s online form after receiving permission from their districts.
ADE pledged to continue replenishment of overdose kits to ensure schools’ continued ability to handle opioid emergencies.
Nearly 60 percent of all fentanyl in the country comes through Arizona. Maricopa County maintains the second-highest overdose death rate among youth, according to Horne.
“Within the past three years, overdoses rose to the third leading cause of death in youth under age 18,” said Horne. “And according to the Department of Health Services, our state has recorded more than 1,300 non-fatal overdoses and 224 deaths in our kids since 2017. Those figures represent tragic situations for children and their families. As a state, we must do as much as possible to combat this scourge, which is why I am so proud of the meaningful progress made by the STOP-IT taskforce.”
Arizona reported over 1,900 opioid-related deaths and over 4,000 overdoses in 2023. 26 of those opioid-related deaths were among minors (those under the age of 17).
Last year, AZDHS recorded over 3,900 non-fatal opioid overdoses and over 1,300 confirmed opioid deaths. Total non-fatal overdoses among minors amounted to 94. Overdose deaths among minors for this year amounted to less than 10.
In partnership with ADE to make STOP-IT possible are the Arizona School Resource Officers Association, Arizona Counter Drug Task Force, Arizona School Administrators Association, Arizona Association of School Business Officials, Arizona Department of Health Services, Arizona School Boards Association, Arizona Society of Addiction Medicine, Arizona School Counselors Association, Arizona Chapter of the American College of Physicians, Arizona Association of School Psychologists, Arizona Health Care Cost Containment System, Arizona Interscholastic Association, Arizona Nurses Association, Arizona Medical Association, Arizona Chapter of the American Academy of Pediatrics, Arizona Chapter of the National Safety Council, National Association of School Nurses, School Nurses Association of Arizona, and the Substance Awareness Coalition Leaders of Arizona.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
The Arizona Democratic Party (ADP) faced accusations of financial wrongdoing from one of its leaders, days before the party’s convention and officer elections.
The accusations come from ADP Vice Chair Will Knight. In a letter to Chair Yolanda Bejarano last week, Knight accused their treasurer, Rick McGuire, of “self-dealing” and the party of improper reporting. Knight requested an audit of the party’s finances. Bejarano denied the request.
Bejarano called the allegations “defamatory” as well as “false and damaging” in response to the letter, per reporting by the Arizona Capitol Times. The chair said that McGuire received the $66,000 over the course of two years for work done as an independent contractor “beyond his voluntary role as Treasurer.”
Specifically, Bejarano said that McGuire provided consulting services for ADP umbrella organizations that often incurred “substantial fines” from finance errors, namely county parties and legislative district committees. As noted by the Capitol Times, party bylaws don’t prohibit ADP leadership from working as contractors (though they may not work as employees of the party).
The payments to McGuire were for handling finance questions from party members — described as “treasurer training and support” in public reporting — and they were disclosed with the Federal Election Commission and Secretary of State Adrian Fontes, says Bejarano.
“The Party does not have extra resources to placate unreasonable claims,” said Bejarano. “What exactly would a costly independent audit show that a review of publicly available information would not?”
ADP paid McGuire $36,000 in 2023 and $30,000 last year. In addition to handling ADP finances, McGuire has worked as an executive producer at Health & Medical Multimedia.
Bejarano said that she, along with ADP’s staff, an attorney specializing in state campaign finance, and compliance firm, all reviewed and found there to be no problems with McGuire’s contracts or their reporting.
Knight, an attorney and decriminalization director of the National Homelessness Law Center, alleged that his efforts to investigate the payments to McGuire were refused. Knight requested financial documents in early 2023 following a budget presentation shortly after his election to the vice chairmanship.
ADP communications director Patricia Socarras explained McGuire’s ongoing payments were a continuation of similar agreements arranged by prior party leadership.
“The Arizona Democratic Party is held to very high reporting standards by both federal and state law, which we enthusiastically meet because we believe all Arizonans should have that transparency from their local parties,” said Socarras. “Mr. Knight’s claim is baseless and a distraction from the hard work that we have ahead to ensure Democrats are prepared to win in 2026.”
The infighting emerged as ADP headed into the election of its next slate of officers during its convention.
Bejarano faced several opponents: Robert Branscomb, an insurance agent, president of the Phoenix Chapter of the National African American Insurance Association, member of Sen. Mark Kelly’s African American Advisory Board, and ADP vice chair; Cathy Ransom, 2022 Democratic candidate for State House District 1; and Dave Braun, an attorney and long-time state committeeman.
During the meeting on Saturday, Democrats rejected Bejarano and elected Branscomb as party chair. McGuire was also ousted as treasurer in favor of Greg Freeman.
AZ Free News is your #1 source for Arizona news and politics. You can send us news tips using this link.
Arizona Republicans were excited to return to work at the state legislature for another year.
Earlier this week, the Arizona Legislature restarted its engines for the beginning of the 57th Regular Session, commencing the third year of a divided state government between Republicans in the House of Representatives and Senate and Democrat Governor Katie Hobbs.
State Representative Quang Nguyen posted, “Getting ready for the opening day, AZ Legislature.”
Representative Rachel Jones shared the oath of office with a picture of her being sworn into the new term: “I do solemnly swear that I will support the Constitution of the United States and the Constitution and laws of the State of Arizona, that I will bear true faith and allegiance to the same and defend them against all enemies, foreign and domestic, and that I will faithfully and impartially discharge the duties of the office of House Representative according to the best of my ability, so help me God.”
“I do solemnly swear that I will support the Constitution of the United States and the Constitution and laws of the State of Arizona, that I will bear true faith and allegiance to the same and defend them against all enemies, foreign and domestic, and that I will faithfully and… pic.twitter.com/0ZngQKDd40
Senator Janae Shamp was honored with the position of her chamber’s Majority Leader, becoming the third female in that role in the state’s storied history. The X account for the Arizona Senate Republicans wrote, “Today, Senator Shamp made history as only the third female Majority Leader of the Arizona Senate! At the Senate Opening Day Ceremony, Majority Leader Shamp had the distinct honor of introducing State Treasurer Kimberly Yee, formerly known as Senate Majority Leader Yee from 2017-2019. Majority Leader Shamp joins the ranks of Kimberly Yee and the legendary Sandra Day O’Connor as just one of three women to serve as the Arizona Senate Majority Leader in Arizona history. This achievement marks a significant step forward for women in political leadership positions, setting the stage by inspiring future generations of women in leadership.”
Today, Senator @AZSenatorShamp made history as only the third female Majority Leader of the Arizona Senate! At the Senate Opening Day Ceremony, Majority Leader Shamp had the distinct honor of introducing State Treasurer Kimberly Yee, formerly known as Senate Majority Leader Yee… pic.twitter.com/ygIE0ZmPe0
State Treasurer Kimberly Yee shared praise for Shamp, saying, “It was an honor to recognize Senator Shamp as the 3rd female Senate Majority Leader in Arizona’s history. As the 2nd female Senate Majority Leader, I was honored to congratulate Leader Shamp on this accomplishment and offer her words of wisdom as she begins this important role.”
It was an honor to recognize @AZSenatorShamp as the 3rd female Senate Majority Leader in Arizona's history. As the 2nd female Senate Majority Leader, I was honored to congratulate Leader Shamp on this accomplishment and offer her words of wisdom as she begins this important role. pic.twitter.com/nuTU9j4UUv
— Arizona Treasurer Kimberly Yee (@AZTreasurerYee) January 13, 2025
Senator Shawnna Bolick posted, “Earlier today, I took my oath to uphold our state’s and US Constitution and laws governing us against foreign and domestic enemies. It is an honor to serve my second term in the State Senate representing District 2. Thank you to everyone who helped us retain this legislative seat.”
Earlier today, I took my oath to uphold our state’s and US Constitution and laws governing us against foreign and domestic enemies. 💪🏻
It is an honor to serve my second term in the State Senate representing District 2.
Representative Michael Carbone added, “Honored to be sworn in as Majority Leader in the State House this past Monday, along with these fellow State Representatives and Senator. We’re ready to get to work!”
State Representative Michele Peña wrote, “I’m privileged and honored to have been sworn in last Monday to represent LD 23 for two more years. Thank you to my constituents, friends and family for your support. I’m ready to continue working hard for you.”
I’m privileged and honored to have been sworn in last Monday to represent LD23 for two more years. Thank you to my constituents, friends and family for your support. I’m ready to continue working hard for you. https://t.co/qzFOBSbj9apic.twitter.com/HzPD9JahNH
Representative Justin Olson stated, “It was an honor to be sworn in to the 57th Arizona State Legislature today! I look forward to serving my constituents while working to protect and preserve the conservative principles of our country’s founding. We are so blessed to live in a land where freedom reigns!”
It was an honor to be sworn in to the 57th Arizona State Legislature today! I look forward to serving my constituents while working to protect and preserve the conservative principles of our country's founding. We are so blessed to live in a land where freedom reigns! pic.twitter.com/QnVc6sLkGT
These Republicans – and the others in their caucuses – will be counted upon to hold the line against their Democrat counterparts and Governor Katie Hobbs in, what will certainly be, another contentious installment of an Arizona state government.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
Arizona Democrats returned to work at the state legislature last week – this time with smaller numbers than the previous year.
Last Monday, the Arizona Legislature revved back into action for the 57th Regular Session. Even though legislative Democrats lost ground in both chambers during the November 2024 General Election, they were still excited for the start of the year and the work ahead to stand with Governor Katie Hobbs in a divided state government.
On its X account, the Arizona Senate Democrats Caucus posted, “Today the 57th Legislature kicks-off and Democrats have set a bold agenda to make Arizona more affordable, invest in public education, secure our water future, keep government out of our private lives, and protect our right to vote.”
Today the 57th Legislature kicks-off and Democrats have set a bold agenda to make Arizona more affordable, invest in public education, secure our water future, keep government out of our private lives, and protect our right to vote. #azlegpic.twitter.com/RwdGSpDjja
State Representative Consuelo Hernandez wrote, “Honored to be sworn in for my second term in the 57th legislature as your state representative in district 21! Thank you for the confidence I commit to fighting to help improve our community. Thank you for your support!”
In a press conference before the Opening Day festivities, House Democrat Leader Oscar De Los Santos said, “It is time to put working families first. That is why we will make the government work for you and not the special interests.”
“It is time to put working families first. That is why we will make the government work for you and not the special interests.” — House Democratic Leader Oscar De Los Santos kicks off the joint Democratic priorities press conference. #AZLegpic.twitter.com/nBEOLxbhBh
State Senator Eva Diaz added, “Today is Opening Day at the State Legislature. I will continue to take action for District 22 by advocating for effective public education, quality healthcare that’s accessible and affordable, and the rights of vulnerable communities and working class families.”
Today is Opening Day at the State Legislature. I will continue to take action for District 22 by advocating for effective public education, quality healthcare that's accessible and affordable, and the rights of vulnerable communities and working class families. pic.twitter.com/2WDYBoBwlv
Senator Analise Ortiz stated, “Today I was officially sworn in as your State Senator. Thank you, Maryvale and Glendale for your trust in me. I’m honored to go to work every day to fight on your behalf for housing we can afford, fair wages, safe communities, and fully-funded public schools.”
Today I was officially sworn in as your State Senator. Thank you, Maryvale and Glendale for your trust in me. I’m honored to go to work every day to fight on your behalf for housing we can afford, fair wages, safe communities, and fully-funded public schools. pic.twitter.com/MQvWPz5sNT
Representative Kevin Volk posted, “This week, I was sworn in as State Representative for District 17 in Arizona’s 57th Legislature. I’m grateful to my family, friends, and supporters, and to the voters who entrusted me with this great responsibility. It is an honor to serve.”
This week, I was sworn in as State Representative for District 17 in Arizona's 57th Legislature.
I'm grateful to my family, friends, and supporters, and to the voters who entrusted me with this great responsibility.
While Democrats are filled with optimism at the beginning of this new legislative session, they will be largely relegated to the background as Republican lawmakers control the mechanisms of the House and Senate and lead negotiations on key items during the session, such as the budget. Democrats will again provide support for Hobbs however they can from their perches in the minority and attempt to set the stage for a legislative takeover in two years, in what will be another critical election year for the State of Arizona.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
