Horne believes Isaac School District deal with Tolleson could face legal challenge
Jan 30, 2025, 4:16 PM
PHOENIX — Arizona Superintendent of Public Instruction Tom Horne thinks the deal the Isaac School District struck with Tolleson on Wednesday could be the subject of a legal challenge.
Horne told KTAR News 92.3 FM on Thursday that the $25 million leasing deal that will help the financially troubled Phoenix elementary district stay afloat might be contested in the courts since the Tolleson Union High School District would own a building outside its attendance area.
Elda Luna-Nájera, the only Tolleson board member to vote against the agreement with Isaac, said before voting ‘no’ that she also expected a legal battle.
“There may be a lawsuit to determine whether it’s legal, but if it does proceed, it will solve Isaac’s problems,” Horne said.
Isaac School District future still in flux
A legal challenge could stunt the progress made to rescue the district that is facing more than $20 million in payroll shortages.
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The lease-purchase agreement approved Wednesday will have Tolleson pay $25 million for Isaac Middle School before eventually leasing it back to the troubled district. Isaac will have up to 12 years to pay it back at a 6% interest rate.
The State Board of Education appointed a third-party receiver to oversee the district’s operations, including finances, governance and academic programs earlier this month. The Arizona board voted to intervene on Jan. 14 because Isaac overspent its budget by at least $12 million.
District Superintendent Mario Ventura resigned and accepted full responsibility for the crisis a week ago.
Isaac, home to 4,800 students and hundreds of employees, has been on the Arizona Auditor General’s financial risk list since 2020 and was found to have negative cash balances starting in 2023.
Teachers in the district have been going to work without pay since Wednesday. A federal lifeline of $6 million is on the way but isn’t expected to come in time to cover the next payroll.
I’ve made it my first priority and our department’s first priority in the immediate present to help the school district be able to pay its teachers and keep a place for the kids to be able to go to school,” Horne said.
KTAR News 92.3 FM’s Balin Overstolz-McNair contributed to this report.
