Isaac School District teachers to be paid after approval from state treasurer
Jan 30, 2025, 9:39 PM | Updated: Jan 31, 2025, 6:40 am
PHOENIX — Isaac School District teachers will receive a paycheck, after a mismanaged budget left the district in financial chaos and without money to pay staff and teachers.
Isaac teachers will be paid, but it is unknown how fast paychecks will be delivered. Friday could be the third day for teachers to work without pay depending on how quickly an agreement is reached to process their paychecks.
Isaac District Education Association (IDEA) members will stage a walk-in on Friday to demand their paychecks are delivered the same day, according to a statement.
In a Tuesday night meeting, IDEA members and the district’s state-appointed receiver voted to have teachers go back to work on Wednesday without pay.
“Isaac members have made an extraordinary sacrifice to work for free to secure this deal to keep schools open, because students need qualified educators in the classroom. While we were hoping for paychecks to be processed today, Isaac members are going into work on Friday, because they have an assurance that they will receive their overdue paychecks as soon as Treasurer John Allen fulfills his role,” Arizona Education Association President Marisol Garcia said in a statement.
“I couldn’t be more proud of our members for doing more than should be expected of any worker, but I look forward to this issue finally being resolved on Friday.”
How will Isaac School District teachers get paid?
There are 12 elementary schools within the Isaac School District, which is waiting on $6 million in federal funding that didn’t make it in time for the district’s pay period.
The State Board of Education appointed a third-party receiver to take over the district’s operations. The Arizona board voted to intervene on Jan. 14 because Isaac overspent its budget by at least $12 million.
It was agreed the Tolleson Union High School District (TUHSD) would pay $25 million for Isaac Middle School and later lease it back to the west Phoenix district, according to the proposal. Isaac reportedly has negative cash balances in the $20 million range. The emergency sale of the middle school gives the district a chance to remain operating.
Isaac agreed to pay the loan back within 12 years at a 6% interest rate.
Arizona Superintendent of Public Instruction Tom Horne told KTAR News 92.3 FM on Thursday that the deal that the Isaac School District struck with Tolleson could be legally challenged.
How did the Isaac School District get into financial trouble?
Rep. Matt Gress told KTAR News 92.3 FM’s The Mike Broomhead Show last week that the school has had budget issues since 2020 and was on a financial risk list. In 2023 it was learned that Isaac had negative cash balances.
Gress said the district allegedly misrepresented its finances and hid cash balances. He said there should have been more “aggressive intervention” by the state.
“It seems like we wanted to do a light touch and allow the district to find its way out of this financial mess, and that didn’t work,” Gress said.
Republican House leaders called on Arizona Attorney General Kris Mayes and Maricopa County Attorney Rachel Mitchell to open a criminal investigation into how the school district got into a financial crisis.