Navigating the budget shortfall of Issac Elementary School District

Madeleine Parrish, Education Reporter at “The Arizona Republic” and azcentral.com, joined “Arizona Horizon” to talk about Issac Elementary School District, a west Phoenix school district that has overspent its budget by roughly $28 million.

On Wednesday, Jan. 29, 2025, the Tolleson Union High School District’s Governing Board approved a deal with Isaac Elementary that would essentially allow the neighboring high school district to loan Isaac Elementary $25 million. But by 5 p.m. Thursday, Maricopa County Treasurer John Allen had not yet greenlit the payroll checks.

This is now leading to a financial crisis and an investigation within the school district and the education board. The district has five years to pay $25 million and a 6 percent interest rate. 

“It is quite rare for a school district to go under Receivership. Issac Elementary School District is a relatively small school district in Phoenix, serves about 4800 students; placed under receivership by the state board of education three weeks ago, a firm is overseeing the district’s operations” said by Parrish.

That check happens on average once every five years, according to the state board, every five years of education. 

The receiver has until May to devise a plan to set the finances right. “I have been told that many options are on the table. Some of those include cost-cutting measures,” said Parrish.

“so Issac Elementary has undeveloped planned and commercial buildings it could sell, so there are a few solutions in play, but it remains to be seen exactly how the district is going to repay that,” said Parrish.

How does the County come into this?

That was the reason it couldn’t pay employees: The funding source from the Maricopa County Treasures Office was essentially cut off because it owed so much money that Maricopa County said it had no clear plan to repay.

They owed 28 million to the county, and Maricopa County Treasurer John Allen said we cannot continue to honor district expenses until you show us you can repay the debt.