PHOENIX (AZFamily) — A Phoenix school district in a budget crisis is getting some much-needed cash thanks to a deal with a neighboring school district.
The Isaac School District Governing Board voted unanimously on Wednesday night to accept a lease-back deal for one of its middle schools.
The district will sell Isaac Middle School to Tolleson Union High School District for $25 million and Tolleson will then lease back the building at 6% interest.
The Tolleson Union High School District Governing Board also approved the deal.
Isaac School District will have 12 years to buy back the building.
The move would give Tolleson about $35.5 million when all is said and done.
Andrea Valencia, a kindergarten teacher with Isaac Elementary School District at the Tolleson meeting, hopes the deal leads to her being paid by the end of the week.
“No district should have to go through this. No educator should have to go through this crisis,” said Andrea Valencia.
However, community members with Tolleson feel the $25 million should be spent in Tolleson.
“How come they aren’t spending it here? There’s a lot of schools in the district that are feeder schools that can do a lot with that money,” said Adan Morado.
Tolleson Union High School District Superintendent Jeremy Calles said the district has more than enough funds to help their neighboring district in crisis, saying they have nearly $80 million in the bank.
Arizona Education Association president and Isaac School district teacher Marisol Garcia said on Wednesday night is cautiously optimistic about the deal.
“While we’re encouraged by tonight’s vote, we will continue to wait for further communication from the receiver tomorrow. Isaac educators were told repeatedly that the crisis would never get to this point, so we’ll know it’s resolved when checks are in hand,” she said in an emailed statement.
The $25 million is expected to be transferred on Thursday.
During that time, the receiver, who is currently overseeing the Isaac School District, is going to confirm whether or not teachers will be paid by the end of the week.
The influx in cash is a welcome sight for the district that is nearly $30 million in debt.
The district missed payroll on Tuesday and teachers went to work on Wednesday for no pay.
Maricopa County Treasurer John Allen has made it clear the district has been cut off, and he will only bankroll paychecks if the Legislature forces him to.
State lawmakers are working on a plan, too.
A House committee approved a bill that would help get teachers paid but it only covers the teacher paychecks currently owed.
The earliest the full House could vote on it is Thursday.
Isaac School District received earlier this week $6 million in federal funds but accessing that money will take a few days.
Even when it is available, the county treasurer claimed that money will go toward paying off some of the district’s debt and not teacher salaries.
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