PHOENIX — The Isaac Elementary School District in Phoenix is set to receive federal funding amid its financial crisis.
Superintendent of Public Instruction Tom Horne announced Monday that the federal government agreed to send back $6 million of Elementary and Secondary School Emergency Relief (ESSER) money to the district to help cover at least the next three payrolls.
The district was put under receivership in mid-January.
Horne stated, “I am very pleased that the U.S. Department of Education has honored the request made several weeks ago by my department to release federal Covid relief funds that the Isaac district had previously reverted to the federal government. Once the county disburses this money, the district will be able to make use of approximately $6 million, which will grant them more time to work out the significant financial issues they face.”
Horne also noted, “As good as this news is, there is much more to be done. I urge the state legislature to continue working on other solutions that will help the district climb out of this financial situation. Also, the district has properties that can be sold which means any advance on funds by Maricopa County can eventually be repaid.”
On Tuesday, the House Education Committee voted unanimously to advance HB 2610, sponsored by chair Representative Matt Gress. The bill would direct the Maricopa County Treasurer’s Office to pay $2.5 million in warrants to cover payroll as well as remove the district’s school board members.
“This is not a pleasant day in the education committee. This should not even be a vote we’re having right now. The only reason we are is the abject failure of the Isaac Elementary School District… an example of how a community can be so impacted by their leadership,” Gress said in the meeting.
Some lawmakers expressed hesitation with the bill, saying it’s only a short-term fix.
“I’m extremely torn right now. I feel like I’m having to choose between children and their education and not really addressing the issue at hand which is, is Isaac going to get through the rest of the school year?” State Rep. Stephanie Simacek questioned in the meeting.
Gress promised a more long-term solution soon and that this current bill would just help fix the problem for this current payroll.
The bill unanimously passed in committee, it still needs to go through the Senate and get a signature from Governor Katie Hobbs. The date of when it goes to the house floor remains unclear.
“The members of the union and the educator’s union have decided to go to work tomorrow despite not being paid today,” said Garcia Tuesday. “Their commitment is to students.”
Early Tuesday morning, the White House took drastic measures to control trillions of federal dollars by ordering a freeze on all federal grants and loans so President Donald Trump’s administration can review government spending.
Just after noon on Tuesday, Horne released a statement, clarifying that this pause will not impact the funds for the Isaac Elementary District.
“This pause does not affect the $6 million to be allocated to the Isaac Elementary District. Our department is already processing those funds,” read Horne’s Tuesday statement, in part.
After a closed door meeting with the state-appointed Receiver on Tuesday evening, Isaac District Education Association members voted to return to work on Wednesday.
ABC15 crews were there on Monday, as Issac Elementary School District teachers, staff, students and parents organized a press conference and march around the Arizona Capitol.
President of the Arizona Education Association and an Isaac educator, Marisol Garcia, stated, “No one behind me knows if they are getting paid tomorrow. Not one of them.” When asked if they would still show up to work on Wednesday without pay, she responded, “I don’t know. I don’t know.”
Earlier this month, the Arizona State Board of Education discussed the district’s financial insolvency, and they appointed a receiver to take over all finances and operations.
Teachers said the district did not have the money to cover their paychecks. Superintendent Horne said Maricopa County Treasurer John Allen had declined to advance more money to the district and instead wanted to use the money to help pay down the debts.
When ABC15 asked about the $6 million and it will go toward payroll on Monday afternoon, this is what Allen’s office said:
“The district must demonstrate the ability to offset its existing fund deficits and registered warrants before subsequent expenses can be honored. $6 million in ESSER money would reduce the district’s fund deficits, but they are still negative. We are waiting to hear the proposed solutions for offsetting the remaining fund deficits and registered warrants.”
