Tolleson board approves $25 million lease-leaseback to fund Isaac payroll amid objections

Tolleson Union High School District on Tuesday approved a resolution authorizing a $25 million lease-leaseback arrangement intended to provide immediate cash for the Isaac Elementary School District so it can meet payroll for roughly 5,000 students and staff.

The board approved the resolution after a public hearing that included teachers, parents and state legislators who urged Tolleson to act quickly; several speakers opposed using Tolleson funds to cover what they described as another district's fiscal problems. The motion passed in roll call voting with a majority in favor and one board member saying she could not vote yes.

Superintendent (name not specified) and district staff described the structure as a 12-year lease-leaseback at 6% interest, not a title transfer. Under the plan Tolleson would acquire leasehold rights to an Isaac facility and lease it back to Isaac. The superintendent said the total payments over 12 years would be about $35.4 million, meaning Tolleson would receive approximately $10.4 million in net interest if the arrangement runs the full term. The transaction includes no prepayment penalty, an estimated $100,000 in delivery costs and contractual limits designed to protect Tolleson, including a clause that Isaac may not close more than two schools during the lease term without paying the outstanding balance in full.

Why it matters: supporters said the infusion would allow Isaac to meet a near-term payroll deadline and avoid displacing students midyear; opponents said Tolleson taxpayers should not underwrite another district's mistakes and raised legal and financial concerns.

Public comment and legislative support

Several teachers and community members from Isaac and Tolleson urged the board to approve the measure. Eddie Nunez, who…