County forced to take pay up after Arizona school district found with sourceless spending
(The Center Square) – The Maricopa County Board of Supervisors recently discovered that the Maricopa Accommodation School District went more than $2 million over their approved line of credit for…
(The Center Square) – The Maricopa County Board of Supervisors recently discovered that the Maricopa Accommodation School District went more than $2 million over their approved line of credit for the fiscal year of 2022.
Despite already being in debt, the school district sunk further into financial mismanagement with more overdrawn spending. The district made it appear on paper that their finances were healthy, hiding the debt and thus committing what the county calls fraud.
“In essence, the Accommodation School District spent money they didn’t have,” said Bill Gates, Chairman of the Board of Supervisors, District 3. “Even worse, after we confronted them about it, they took out another line of credit for which they had no collateral.”
This isn’t the first time that County School Superintendent Steve Watson allegedly created financial trouble for the district.
The board cited multiple instances in which Watson allegedly violated the matching principle of depositing revenue into special funds without accounting for similar recorded expenses in the general fund. For six years, the board says the superintendent has not followed through on the budget plan presented to the board, which reflects upon how nearly $1.7 million in federal grant money was suddenly spent.
Watson didn’t respond to a request for comment on Friday.
“Board members expect budgets and business plans that deliver results to improve the lives of residents. While the Accommodation School District is allowed by Arizona law, it is not required, and the cost per student is not supported by any quantitative results shared with the board,” said Chairman Gates. “We will do everything we can to support quality education for all students in Maricopa County, but we cannot turn a blind eye to clear mismanagement of taxpayer money.”
From here, the Board of Supervisors approved using taxpayer funds to pay off the superintendent’s district debt. It will be Watson’s responsibility to manage finances for the Accommodation District, but he will remain under investigation by the state Auditor General until her report next month.
