Arizona Treasurer Kimberly Yee has denied a $3 million emergency cash advance to the Nadaburg Unified School District, citing concerns about financial mismanagement and ordering multiple investigations.
The small school district requested the unprecedented advance after projecting a $5 million budget deficit for the current fiscal year. District officials stated that they required emergency funds to continue operations.
Kimberly Yee determined that providing the money would not address underlying issues and could worsen the district's long-term financial position. She announced her decision this week, explaining that the request raised significant questions about financial management.
Finances
The district's projected $5 million deficit is nearly three times larger than its annual local property tax revenue of $1.7 million. The deficit also represents about 40% of all state funding the district expects to receive in fiscal year 2026.
“As Arizona's Treasurer and a taxpayer watchdog, I am seriously concerned that an advancement of funds now will only compound the District's deficit and harm the financial stability of the District for years to come,” Yee emphasized.
Yee's decision creates a difference of opinion with State Superintendent Tom Horne and the Arizona Department of Education, who initially approved the cash advance before it reached the treasurer's office.
She then questioned the education department's approval, noting that the multi-agency review process serves as a system of checks and balances. Explaining that education officials should have identified potential financial concerns before recommending such a substantial advance.
Future of Education
Rather than simply denying the request, Yee has initiated investigations such as:
- Asking the Joint Legislative Audit Committee to direct the Arizona Auditor General to conduct a special investigation
- Requesting the Arizona State Board of Education review findings to determine if a receivership or financial crisis team should be appointed
Yee described her decision as fulfilling her constitutional duty as the state's fiscal officer to review cash advance requests based on their fiscal impact.
“With my denial of this cash advancement of $3 million, I have asked the Joint Legislative Audit Committee to instruct the Arizona Auditor General to conduct a special investigation into the financial management of the Nadaburg Unified School District, and the Arizona State Board of Education to review the findings to determine if a receivership or financial crisis team should be appointed to the District,” she concluded.
