Key Points:

• Bill would have forced removal of school board members

• Governor called it “blatant legislative overreach”

• Bill’s supporters focused on Isaac’s loans and contracts

Gov. Katie Hobbs vetoed a measure that would have forced the removal of elected school board members if their district is placed into receivership.

The governor vetoed House Bill 2610 on June 24, which was advanced through the Legislature as a response to the Isaac Elementary School District overspending its budget by more than $20 million. 

HB2610 contained a retroactive clause that would have removed Isaac’s Governing Board members from their elected positions. 

In her veto letter, Hobbs wrote: “This bill appears to seek broad retribution rather than providing targeted methods to address problems. Mandating the upheaval of an entire elected school board is blatant legislative overreach that would create disruption and confusion for school districts during times of crisis.” 

Even with the veto, Hobbs called on Isaac’s Governing Board leadership to resign and stated that the district’s financial mismanagement is unacceptable. 

Attorney General Kris Mayes and the state’s Auditor General’s Office are investigating the district’s financial practices.

Isaac school board President Patricia Jimenez thanked Hobbs for vetoing the measure and sent a letter to Hobbs before her veto that HB2610 would have plunged the district into “deeper chaos” than before the state Board of Education appointed a receiver to the district. 

“Although we disagree with the governor’s assessment of the governing board’s leadership, we look forward to completing the job of steering Isaac on a path of long term financial solid footing and to continuing to protect Isaac’s students, teachers and schools. The Isaac community was well served by the governor’s veto,” Jimenez said in a statement provided to the Arizona Capitol Times.

Republican lawmakers have scrutinized the financial management of Isaac and an agreement the district made with the Tolleson Union High School District to climb out of its budget deficit. 

Tolleson acquired the leasehold rights over Isaac Middle School for $25 million, which it has leased back to Isaac. Tolleson will hold the land rights of the school for 12 years at a 6% interest rate, which Rep. Matt Gress, R-Phoenix, has called a “predatory loan.”

Gress has also questioned Jimenez’s leadership multiple times during the session. Most recently, during a June 6 Joint Legislative Audit Committee meeting, he said an $88,000 contract the district entered into with Jimenez’s boyfriend for marketing services appeared “unethical” to him. 

Jimenez told the Arizona Capitol Times that Gress’ inquiry was related to a near-$43,000 invoice from the Glendale-based Brand Regal Media Tech that was mistakenly duplicated and has been voided. She also denied Gress’ claim of being in a relationship with Chris Louis, who is listed as the statutory agent for the company in the Arizona Corporation Commission’s entity database.

“I categorically deny any unethical behavior or acting against the best interests of Isaac and its students,” Jimenez said. 

Gress and Sen. Mark Finchem, R-Prescott, said they want to hear from Tolleson Union officials about the agreement with Isaac during the next Joint Legislative Audit Committee hearing. They invited Tolleson’s Superintendent, Jeremy Calles, and its Governing Board President, Leezah Sun, to its June meeting, but neither attended. 

If Tolleson officials skip the next meeting, Gress said the committee would explore other compulsory options to hear from them.