Grand Canyon Times

The Arizona House Speaker and fellow House Majority Leadership sent a letter to Attorney General Kris Mayes (D-Ariz.) requesting a criminal investigation into the financial collapse of Isaac Elementary School District (IESD) in Phoenix.

“Our sympathies begin and end with the students, faculty, and parents of Isaac,” said AZ House Speaker Steve Montenegro (R-Goodyear). “At the heart of this crisis are more than 4,800 students and hundreds of employees who have been abandoned by failed district leadership.”

“The falsification of financial records and the mismanagement of public funds are a betrayal of trust and must be investigated immediately,” Montenegro said. “The people of Arizona deserve to know how this happened, and those responsible must be held accountable.”

IESD has been reported to be over $12 million in debt, with some sources indicating the deficit could be as high as $15 million or more. This financial mismanagement led to the district being unable to meet its payroll and other operational costs, reported Fox 10 Phoenix.

Due to the crisis, the Arizona State Board of Education placed the Isaac School District under receivership on January 14, 2025. The U.S. Department of Education has agreed to provide $6 million in federal relief funds to assist with immediate payroll needs. 

The superintendent of the district, Mario Ventura, resigned amid the financial crisis, taking responsibility for the situation. Additionally, there have been calls from educators for the entire school board to resign, reported ABC 15. 

Arizona Superintendent of Public Instruction Tom Horne (R) has asked for emergency legislation to ensure staff are paid, while Mayes asked Maricopa County to continue payments to the district to prevent immediate disruptions.

The letter sent by House GOP leadership to Mayes said the leaders were “shocked to learn” that Mayes said she has “no intention of investigating this school district, claiming that there is no evidence of warranting an investigation.

“Your statements defending the school district’s actions strongly suggest that you have already made up your mind without reviewing any facts,” said the letter. “Notably, you have shown no hesitation whatsoever to investigate any potential violations of the law when the bad actors involved are affiliated with Arizona’s Empowerment Scholarship Account program.”

First elected to the Arizona House in 2008, Montenegro represented District 12 until 2016. He then served one term in the Arizona Senate for District 13 from 2017 to 2018. In 2022, Montenegro was elected again to the Arizona House, representing District 29.