Isaac School District Faces Crisis with School Closures

Categories: Breaking NewsGovernment NewsNews

The playground of P.T. Coe Elementary School stands empty following its closure.

News Summary

The Isaac School District announced the closure of P.T. Coe Elementary and Moya Elementary due to financial struggles and declining enrollment. State receiver Keith Kenny overruled the board’s decision to keep the schools open, citing a significant budget crisis. With a $28 million shortfall, the district must make tough decisions to stabilize its finances. The closures highlight a troubling trend impacting public education in Arizona, raising concerns among community members about the future of local schools and students.

Phoenix – The future of the Isaac School District faced a significant shift as state-appointed receiver Keith Kenny overruled the district’s governing board, resulting in the closure of P.T. Coe Elementary School and Moya Elementary School. The governing board had voted 4-1 against the closures on May 15, 2025, but the financial realities of the district compelled Kenny to take decisive action.

The closures stemmed from a drastic decrease in student enrollment alongside ongoing financial troubles within the district. The Isaac School District, which is currently grappling with a budget crisis estimated at nearly $28 million, reported a cash balance of $8 million as of May 8, 2025. These financial challenges have raised serious concerns about the district’s ability to maintain its schools effectively.

Reducing Facilities to Counter Financial Issues

Interim Superintendent Dr. Lily Mesa-Lema noted the pressing need for spending cuts, recognizing that declining student enrollment has been a long-standing issue for the district. In her view, the decision to close the schools was a necessary course correction that has been overdue for quite some time. Data from February 2025 indicated that P.T. Coe Elementary had an enrollment of 425 students, while Moya Elementary’s student population stood at 374, further supporting the need for these closures.

Financial Stability at Stake

Board member Harry Garewal Jr. concurred with the decision to close the schools, emphasizing that keeping them open could jeopardize the district’s financial stability and the ability to compensate teachers adequately. In contrast, Board President Patricia Jimenez voiced her opposition to the closures, voicing concerns that public schools in the area could be replaced by private institutions. She also issued an apology to the Isaac School District community for the financial mismanagement that led to this crisis.

Background of the Financial Crisis

The school district’s financial woes intensified after the State Board of Education appointed the state receiver in January 2025 following the revelation of a significant budget shortfall. The budget crisis has largely been attributed to overspending and mismanagement of federal pandemic relief funds, known as ESSER grants, as well as longstanding financial mismanagement by district leaders dating back to at least 2020.

Moreover, Dr. Mesa-Lema pointed out that the district has more facilities than it can afford to maintain. As part of an effort to address these financial challenges, the Isaac School District plans to lease space to STEER, a Phoenix-based education company, aiming to generate additional revenue while also reducing transportation costs.

Impact on the Broader Educational Landscape

The closures of P.T. Coe and Moya Elementary schools reflect a broader trend of declining enrollment affecting public schools across Arizona. Other districts in the state are also grappling with similar financial dilemmas, leading to school closures and significant restructuring efforts in response to demographic and economic shifts.

As the Isaac School District embarks on this challenging journey of restructuring, community members remain concerned about the future of public education in the area and the implications for both students and educators. The decision, while difficult, underscores the urgent necessity of adapting to the changing landscape of public education and addressing the persistent financial challenges that threaten the stability of school districts across the state.