PHOENIX — Efforts are underway to keep Isaac Elementary School District open after a budget shortfall of more than $12 million was discovered. But first, you have to figure out how to cover your salary.

“There’s no money,” said Maricopa County Treasurer John Allen. “It’s the state’s responsibility, not the county’s, to keep schools open. I wish there had been better news from my office to the voters in that district.” This is not a policy choice on my part; It is my legal duty to ensure that if a solution is offered to me, I will participate in it and work hard for it. But we can’t help them at the moment. ”

Allen said staff and teachers who have paychecks that haven’t been cashed in yet should deposit or cash them in as soon as possible.

During an emergency meeting of the State Board of Education on Tuesday, Maricopa County Treasurer John Allen had a few choice words for the group. He’s been looking at the numbers, but he says they don’t add up.

“It’s very hard to imagine how we could get to this situation without some kind of motive that is not in the public interest,” he said.

Related: Issac Elementary School falls under state control due to wasteful mess, fears of school closure

Allen has questions after learning that the Isaac School District is millions of dollars in overspending.

“I can’t speak to their motives or methods,” he said. “All I know is that when they finally gave us the real numbers, they were so caught up in the rift with the county that they had no ability to continue operating. This is devastating.”

Allen said the severity of the situation wasn’t fully understood until December, when it was revealed that district leaders had moved nearly $9 million in federal aid in anticipation of repayment.

“The federal government will not issue refunds until it has completed its spending,” Allen said. “So we pay them with the understanding that we respect them as a county and that when that money comes back from the federal government, it will ultimately be ours. Grants were provided to the school district.

But the district forfeited $8.9 million worth of federal funds because district leaders failed to submit a completion report, according to the Arizona Department of Education. It was between October 2023 and January 2024.

On May 31, the Arizona Department of Education reported that the Isaac Elementary School District was notified of a budget overrun. The department will not be able to confirm what these expenditures were and receive specific information until the Annual Financial Report (AFR) is submitted in October. The agency also reports that Isaac Elementary School District filed an AFR in October. Maricopa notified the department that there were significant errors, including changes to the formula and changes to the code.

In November and December, the district attempted to correct AFR. The district also moved expenses into a cash management account, which did not have enough cash. Subsequent meetings were held with multiple agencies, departments, and districts. It was determined that there was no clear plan to resolve the issue, so an emergency meeting was held regarding placing the school district under state control.

“Local schools are paid for through property taxes,” Allen said. “I’m the county treasurer so I collect taxes, but as a school district we don’t get all the money at once. We get it when we need it. So I’m also acting as a bank at the same time.” has regulated warrants and says they don’t know if you have as much money as they say they have, they have to prove it before they give you more money, but they have these subsidies. We were barely regulating it until we did this redistribution of gold. That wasn’t accomplished. ”

At an emergency meeting of the State Board of Education on Tuesday, district Superintendent Dr. Mario Ventura cited overspending as reasons for the department being overwhelmed, understaffing, and a portion of the grant money received. He cited the fact that the government is generating expenditures other than subsidies. That’s why the question arose.

“Schools often neglect spending limits and other things,” Allen said. “You’re talking about maybe $200,000, maybe $1 million, and he’s talking about $16 million. His excuse is that the dog ate my homework and what? I don’t know what happened. He is the one who is ultimately responsible.”

With no more money, Allen says his hands are tied. All payments will be suspended within a week, he added.

“If you’re taxing a school district, you’re only taxing it within that school district,” he said. “If I want to lend them more money, I have to take money from other jurisdictions, which I can’t do legally. So if Isaac wants to continue, Phoenix Union or Murphy? Or have to take money from what I’m doing.” I’m not allowed to do that. ”

He knows the situation isn’t ideal, but given district leaders’ overspending, he has no other choice.

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