FOR IMMEDIATE RELEASE Wednesday, February 26, 2025
Senate Republicans Address Fiscal Mismanagement,
Fraud, Abuse in School District Spending
PHOENIX, ARIZONA—Senate Republicans are working to prevent waste, fraud, and mismanagement of taxpayer dollars by advancing transparency measures to strengthen oversight of school district spending in Arizona.
With rising concerns over fraud and abuse following the recent crisis with Isaac Elementary School district and their mismanagement of an estimated $20 million, Senate Education Committee Chairman David Farnsworth and Vice Chairwoman Carine Werner are responding with legislation to provide transparency and to encourage responsible school district spending. Both bills passed through the Senate today and being transmitted to the House for consideration.
SB 1689, sponsored by Senator Farnsworth, requires the Arizona Department of Education to notify the county superintendent and take necessary action if it's been determined that a school district overspent their budget. If an expenditure is not included in the district's budget, or if an expenditure exceeds $50,000 or 0.5% of the overall budget, the matter will be brought before the State Board of Education (SBE) for corrective action. SBE may require oversight measures, such as appointing a financial crisis team or receiver to manage the district's finances, to ensure resources are used effectively and for the benefit of students and educators as intended.
"The recent mismanagement of school district funds is not only a failure in fiscal responsibility, but a breach of trust with Arizona's children and educators," said Chairman Farnsworth. "This legislation will help to ensure that such an egregious over-expenditure never happens again by creating a clear process for accountability and corrective action."
SB 1625, sponsored by Vice Chairwoman Werner, requires each school district to post a copy of the previous fiscal year's general ledger on their website by October 1 of each year. The bill also instruct the Arizona Department of Administration to aid in the financial reporting process by developing a financial transparency portal detailing total federal, state, and local revenues by weighted student count, classroom site fund monies, teacher pay and benefit amounts, and any other information necessary for a transparent comparison between schools' revenues, expenditures, student demographics, or achievement.
"It's clear that we must implement stricter reporting requirements after the abuse within a number of our school districts," said Senator Werner. "These measures will not only hold school districts accountable for their financial decisions, or lack thereof, but also to protect taxpayer dollars and ensure they are being used as intended."
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For more information, contact:
Kim Quintero
Director of Communications | Arizona State Senate Republican Caucus kquintero@azleg.gov
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