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Tolleson Union High School District draws scrutiny over land deals, lease to Isaac and governance as residents urge audits

July 21, 2025 | 2025 Legislature Arizona, Arizona


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Tolleson Union High School District draws scrutiny over land deals, lease to Isaac and governance as residents urge audits
Tolleson Union High School District officials defended an array of financial and development decisions on the committee floor while lawmakers and community members pressed for greater transparency and possible forensic review of district governance.

Jeremy Kayas, superintendent of the Tolleson Union High School District, gave a detailed presentation to the Joint Legislative Audit Committee on the district’s strategic plan, recent academic trends, teacher pay increases and multiple real‑estate transactions the district has pursued in recent years. Kayas described upgrades in district letter grades, a sharp rise in teacher and staff compensation and a series of property deals the district says will generate revenue and support career‑technical education.

But several committee members and many public commenters challenged the choices. Representative Gress, Representative Carbone and others questioned a $25 million lease‑leaseback Tolleson approved to help the Isaac Elementary School District, asking why Tolleson used reserve funds and whether the district had sufficient safeguards. Kayas said the structure is a five‑year, 6% arrangement with a final balloon payment and that Tolleson expected the transaction to generate about $7 million over the term compared with leaving cash idle. He said the deal was vetted by attorneys and that the district used a portion of its budget balance to assist Isaac as an emergency liquidity measure; the receiver for Isaac had considered alternatives and the district reduced the term to five years because of statutory limits when a government entity is on both sides of a deal.

Kayas also described a Tolleson ground lease for 12 acres intended for an affordable‑housing development: a $4 million up‑front payment, annual rent of $250,000 beginning in year three with 3% escalators, and a developer plan for about 331 units with rents reported to be roughly 20% below market (range cited $1,400–$1,758 monthly). The district also discussed land purchases: approximately $7.8 million for nearly 12 acres adjacent to the Loop 101 for a 500‑student CTE campus to be done in partnership with West MEC, and acquisition of about 6.96 acres for a new district office (the plan includes repurposing the existing district office for school programs).

Those transactions and a pending $125 million construction bond produced heavy questioning. Critics said voters and taxpayers should have received clearer disclosures about potential revenue uses; several residents and civic groups said board actions were taken with insufficient public notice and urged a forensic audit. "We are disgusted with the leadership at the Tolleson Union High School District," said Adan Morado, chair of the Tolleson Community Coalition. The committee also heard from Citizens for School Accountability and a group calling for curriculum and governance improvements.

Community speakers and some legislators raised conflicts‑of‑interest concerns tied to Superintendent Kayas’s past and ongoing consulting work. Kayas said he has disclosed his consulting relationships to the district and that he has not billed Isaac School District and has not been paid for work on Isaac; he added that some staff members have performed occasional consulting work but said payments go to those staffers directly and that governing‑board evaluation of his work found no interference with his superintendent duties. Several members of the public and some legislators urged more complete disclosure and asked that the Auditor General assess potential self‑dealing.

Other governance concerns focused on meeting practices: critics told the committee a Tolleson board moved a bond‑approval vote into a special meeting with what some called minimal public notice and reduced opportunity for public comment; there were also allegations that the district limited or attempted to limit public commentary at board meetings. Multiple residents reported being banned or otherwise discouraged from speaking at meetings; one resident said the board had adopted a policy requiring prior approval by the board president to approach the dais for public comment.

Public‑safety and school policing issues also arose. Chief Rudy Mendoza of the Tolleson Police Department and the city manager, Reyes Medrano Jr., discussed a campus incident involving a school resource officer and said the department concluded the officer’s use of force in that episode was appropriate; the district and city described a strained relationship over SRO coverage, and Kayas said the district planned to maintain SSOs on campus pending any changes.

Several witnesses, including former Tolleson administrators and curriculum experts, told the committee the district lacks a board‑adopted, teacher‑developed curriculum and argued that resources purchased or adopted by the district have not been implemented through established curriculum policy. Dr. David Briggs, an educator and consultant, told lawmakers that an outside review (a WestEd engagement) found gaps and that the district has spent money on curriculum supports without following the board‑adoption processes required by district policy.

Committee members said they will consider requesting a forensic audit. Chair Finchem said he and Vice Chair Gress expected to coordinate with the Auditor General to design an appropriate audit and asked the Auditor General’s office and the department involved to meet to coordinate next steps.

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Scribe from Workplace AI
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