Key Points:

• HB2601 would require school board members to resign if their district is placed into receivership

• Opponents argue it is unconstitutional to remove elected school board officials without voter input 

• The bill is a response to massive budget shortfalls in school districts

A bill that would force school board members to resign if their district is placed into receivership has cleared both legislative chambers with mostly Republican support. 

The Senate passed House Bill 2610 with a vote of 18-10 on May 28. The measure is a response from GOP members who are unhappy that the State Board of Education placed Isaac School District under receivership in January for overspending its budget by more than $20 million. 

Keith Kenny, the district’s receiver, detailed how the institution overspent its budget in a published report on May 14. Findings show the forfeiture of reimbursements for federal Covid funds, “excessive” labor costs and losses to average membership created the financial shortfall. 

The State Board of Education ordered the closure of two district elementary schools and the termination of 26 district-level employees to recoup funds, and Kenny estimated it would take five to 10 years for the district to become financially solvent. 

HB2610 is retroactive to Dec. 31, 2024, so Isaac’s entire governing board could be removed if the measure becomes law. The bill would also require district superintendents to be terminated for cause upon a district entering receivership. 

“This would not right any wrongs that were committed,” said Sen. Flavio Bravo, D-Phoenix. “This appears to be more political retribution.”

Bravo represents the legislative district where Isaac is located and most Democrats have opposed the measure. 

House and Senate Democratic leaders have called for accountability in the district’s financial management, but they have preferred it to occur through an investigation by Attorney General Kris Mayes. 

Some Democrats have supported the legislation, including all three lawmakers who represent the Tolleson area. 

In January, Isaac entered into a contract with Tolleson Union High School District to lease Isaac Middle School for $25 million to the neighboring district to ensure the district remained open and staff members received their paychecks on time. The contract gives Isaac 12 years to buy back the building at a 6% interest rate. 

“My constituents were not taken into consideration. They have clear concerns with this transaction,” said Sen. Eva Diaz, D-Tolleson. 

HB2610 would nullify the contract between Tolleson and Isaac by prohibiting governing boards from entering into two or more real estate transactions in a 12-month period if the transactions involve the same parties and property, and the bill is retroactive to the contract’s date. 

Isaac’s Governing Board President, Patricia Jimenez, told the Arizona Capitol Times that she believes the bill is politically motivated to remove her and the majority of the governing board members from office. 

Jimenez has served on the board for 22 years — a fact that Rep. Matt Gress, R-Phoenix, pointed out during the House’s initial vote of the measure in February. 

“(Jimenez) has no right to continue serving in her role and she has no right to serve in any public office in the state of Arizona. She has disqualified herself by her incompetence and lack of oversight,” Gress said.

Jimenez sent a letter on April 6 to senators asking them to oppose HB2610 and arguing that the bill is unconstitutional in its attempt to remove elected school board officials from their positions without voter input. She also claims the measure violates ex-post-facto laws related to contractual obligations. 

“HB2610 would unjustly declare most of Isaac’s publicly elected school board positions vacant without due process or criminal charges, disregarding the voters’ will. It even bars these board members from seeking public office in the future, infringing upon their civil rights,” Jimenez wrote.

If the bill goes into effect, a county school superintendent would be charged with appointing new governing board members to a district in receivership upon removal of its standing members. A special election would then be held to elect new governing board members. 

School board members could submit a waiver to exempt them from the requirement to vacate the governing board if they can demonstrate they didn’t engage in misconduct or attempted to address fiscal mismanagement.

Sen. Lauren Kuby, D-Tempe, said she was disturbed that the bill would allow a partisan county school superintendent to appoint board members and said she didn’t think it’s appropriate for the Legislature to force school board members to resign.

“That county school superintendent would be able to appoint partisan members to the board, which is not a good idea if we want to reflect the interests and values of the community,” Kuby said. 

The bill must return to the House for a final reading after Senators make their amendments. The House is in recess until June 4.