STATE CAPITOL, PHOENIX – The financial collapse of the Isaac School District in West Phoenix has brought devastating consequences for its students, parents, and educators, and House Republican leaders are demanding accountability. Today, House leadership called on Attorney General Kris Mayes and Maricopa County Attorney Rachel Mitchell to immediately open a criminal investigation into the mismanagement and potential corruption that led to the district’s fiscal catastrophe with a negative balance in the millions.

“Our sympathies begin and end with the students, faculty, and parents of Isaac,” said Speaker Steve Montenegro. “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. The people of Arizona deserve to know how this happened, and those responsible must be held accountable.”

At a recent State Board of Education meeting, the Department of Education revealed that the district falsified its 2023-2024 Annual Financial Record, altering records to show a positive cash balance despite being millions of dollars in debt. This fraud follows years of warnings from the Arizona Auditor General, who identified Isaac as a high-risk district since at least 2020.

House Republicans are mindful of Attorney General Mayes’ history of inaction on educational fraud. “Since taking office, Mayes has shown zero interest in tackling corruption in school districts,” Majority Leader Michael Carbone said. “Instead, she has used her office to attack parents who use Empowerment Scholarship Accounts to seek better opportunities for their children. This is the same Attorney General who dropped all felony charges against a former Scottsdale Unified Superintendent engaged in a laundry list of fraudulent schemes at multiple school districts. Amazingly, Mayes only required the former administrator to pay income taxes on illegal kickbacks the administrator received – a sweetheart settlement for the ages. The students in Isaac deserve better.”

Given Mayes’ comments to Brahm Resnick on Sunday Square Off, where she claimed not to currently see grounds for criminal charges in Isaac, the House is also requesting that Maricopa County Attorney Rachel Mitchell investigate the case. “If the Attorney General is unwilling to act, we will turn to the County Attorney to ensure justice is served for the students and taxpayers,” Speaker Montenegro added.

“We cannot allow Isaac’s leadership to escape accountability while families in this district pay the price,” said Majority Whip Julie Willoughby. “House Republicans are actively evaluating ways to ensure the district’s students finish the school year, but we will not let taxpayers bail out bad actors without significant and meaningful reforms. One thing is certain though: funding for Isaac is not the problem. The district’s total funding is among the highest in the state at $19,372 per pupil, 23 percent higher than peers, according to the Auditor General.”

“These kids are victims of an incompetently run government school system,” said Speaker Pro Tempore Neal Carter. “House Republicans are the party of open schools, and we will step in to ensure that these schools will remain open for the students.”

“This disaster proves yet again why Arizona families must have options beyond failing government-run districts,” Speaker Montenegro emphasized. “School choice empowers parents and ensures no family is trapped in a system plagued by corruption and incompetence.”

“We are going to do what is right and help these kids finish the school year without leaving Arizona families to foot the bill for someone else’s failure,” Leader Carbone concluded. “There will be accountability, and there will be reform.”

Copies of the House Republican Leadership’s referrals to Attorney General Mayes and Maricopa County Attorney Mitchell are attached and can be viewed here: https://bit.ly/40xyfTQ.

Learn more about the House Republican Majority Plan here: https://azhousegop.com/2025-majority-plan