Isaac School District faces financial crisis in Phoenix

The Isaac Elementary School District in Phoenix is facing a serious financial crisis. Reports indicate that this problem has been developing for years. Documents show the district has been warned multiple times about its financial situation since 2021. Patricia Jimenez, the president of the school board, said they relied on the Chief Financial Officer (CFO) to handle the issues. However, both the CFO, Lynn Lang, and Superintendent Mario Venture resigned shortly after the district was placed under state control in January 2025. The state’s intervention came after the board discovered they were $12 to $16 million over budget. More recently, the county treasurer estimated the debt could be as high as $28 million. Investigations revealed that the board received letters from various agencies, pointing out serious budget issues for several years. These included warnings about overestimated tax revenues and overdue financial reports. The Arizona Auditor General found numerous errors in the district’s accounting practices. In past school board meetings, Lang had mentioned financial troubles, including a 28% drop in student enrollment over four years. He often assured the board that they could manage their finances. However, by March 2025, the district was unable to pay its teachers. State Representative Matt Gress has proposed legislation to remove the current school board members, citing lack of oversight. He emphasized the need for other school districts to learn from Isaac's mistakes. Jimenez disagrees, arguing that such decisions should be left to voters rather than the legislature. Currently, the district is under the management of a state-appointed receiver. Since taking over, the receiver has identified $2 million in savings and is working to correct past financial reports. Investigations into the district’s overspending continue.