Governor Katie Hobbs claims the Maricopa County Board of Supervisors (BOS) can prevent the closure of a Phoenix school district in receivership — but board leadership says Hobbs is evading a key, constitutional responsibility of the state.
Earlier this month, the Isaac Elementary School District (IESD) was placed into a receivership due to its mismanagement of funds (to the tune of over $12 million). Governor Hobbs acknowledged that IESD’s receivership was necessary, as determined by the Arizona State Board of Education (AZSBE), but claimed Maricopa’s BOS was the one with the power to prevent the district’s closure.
Hobbs issued a statement on IESD’s receivership petitioning the BOS to grant the district “additional flexibility” so that it may continue paying school staff. Hobbs announced she had dedicated her office to working on another solution to IESD’s receivership.
“While the accountability and fiscal restructuring process will play out through financial receivership, we must continue to keep the students and staff at the forefront and minimize educational disruption,” said Hobbs.
The Isaac School District is currently facing a fiscal crisis that has the potential to disrupt the education of over 4,800 students and the employment of over 650 staff. I applaud the Arizona State Board of Education for moving at record speed to intervene and place the school…
— Governor Katie Hobbs (@GovernorHobbs) January 24, 2025
BOS Chair Thomas Galvin dismissed Hobbs’ petition as “feckless leadership” and state inaction as “inexcusable” in a press release. Galvin revealed that their county treasurer, John Allen, and other county leaders had “warned state leaders for months” of IESD approaching the fate of a receivership, but nothing happened.
Galvin declared that the appropriate course of action by the governor would be for the calling of a special legislative session.
“It’s flattering that Hobbs thinks the Maricopa Board is the solution to problems. But here’s the answer, I urge the Governor to call a special session and show much-need leadership on this issue, which will only be fixed at the state level,” said Galvin. “Hobbs is bizarrely trying to drag Maricopa County into a mess that happened on the state’s watch. Education is a state function in the Arizona Constitution. Counties can’t and shouldn’t bail out financially mismanaged school districts.”
Just feckless leadership from the state. County Treasurer John Allen & the county superintendent of schools warned state leaders for months. Nothing happened. Tonight Gov Hobbs said state leaders moved at “record speed.” Not true. They waited until the last minute. INEXCUSABLE. https://t.co/WXSezXBO9B
— Thomas Galvin: Chairman, Maricopa County BOS (@ThomasGalvin) January 24, 2025
Indeed, Allen advised the public and members of the media shortly after AZSBE’s action that the county didn’t have the funds to sustain IESD. Even if they did, Allen said the county didn’t have the power to do so.
“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.”
AZSBE issued a unanimous vote to put IESD into a receivership in order to overcome its $12 million budget shortfall.
IESD has about 5,000 students across its 13 schools. Payroll is due next week.
AZSBE’s decision prompted IESD Superintendent Mario Ventura to resign. Ventura announced his resignation during the district’s board meeting on Thursday. The superintendent assumed full responsibility for IESD’s mismanagement of funds.
“I take full responsibility of my role in the decision and circumstances that led us to this situation and it is with my hope and my resignation the district will be allowed to move forward with clarity,” said Ventura.
During the meeting, a third party brought in to advise IESD expressed a lack of confidence in the district to overcome the $12 million shortfall in a timely manner — they estimated it could take years.
