Rep. Matt Gress: “This Seems Predatory” Tolleson Superintendent in Hot Seat at JLAC Hearing
Senator Finchem: “It’s a Hot Mess” — Will Seek Auditor General Audit
On July 21, there was a Joint Legislative Audit Committee (JLAC) hearing, where lawmakers raised serious concerns about financial transparency, academic performance, and leadership decisions involving Isaac School District and Tolleson Union High School District Superintendent Jeremy Calles.
There’s a lot to unpack from this meeting. This is Part One of our coverage. Co-Chairman Matt Gress told State 48 News, that there will be further action on the heels of this meeting.
Calles began the meeting by highlighting gains in school rankings, noting that salaries across the board have increased and that Tolleson teachers are among the highest paid in the district.
Later in the hearing, Chairman Mark Finchem (R-1) criticized the state’s school ranking system, stating, “Only 22% of the kids in the district can do math. We are failing our kids—and instead of fixing that, we’re directing resources elsewhere.”
“I don’t buy this whole of community approach. That’s not even an F.” - Chairman Fitchem said. Take a listen:
Throughout the hearing, lawmakers repeatedly dismissed the ranking system as flawed and instead focused on the alarming number of students in the district who are not proficient in math.
Much of the meeting was dominated by heated debate over Calles’ role in the loan deal by TUHSD to Isaac School District.
State 48 News reported extensively on the bankrupt school district and the inter-district loan. You can find reports located here:
Chairman Gress questioned Calles’ dual roles as superintendent and consultant. He pointed to an Isaac state meeting where Calles appeared to be participating from his Tolleson office while acting as a consultant to Isaac in his personal capacity. Gress told State 48 this reeks of corruption.
Calles confirmed that he was in his superintendent office during the meeting. Gress asked whether Calles uses his superintendent office for his consulting business. Calles admitted that he conducts personal business from his district office during working hours. Gress then asked whether the district had reviewed all seventy contracts for potential conflicts of interest or self-dealing. The Superintendent responded that it had not—and that the governing board does not review his individual contracts or clients.
He responded that he was contacted privately as a consultant and never billed Isaac.
“Isaac School District has never been my client,” Calles said, and emphasized that no contract was signed. He acknowledged his listing on the 1GPA Cooperative and said he provided guidance on issuing a purchase order (PO), but did not accept compensation. He also stated he told the receiver at Isaac to close any PO issued in his name. Calles said, “I’ve never billed a dime nor signed a contract.”
Gress pushed back, noting a PO had, in fact, been issued and questioned why it existed if no services were rendered. This is how the exchange went:
Another major issue is the bond that will appear on the next ballot. For the Tolleson Union High School District (TUHSD), this bond measure—paired with a targeted 15% maintenance & operations budget override—promises to fund critical upgrades and strengthen district finances before voters decide. This bond measure was approved by the governing board in a special meeting without public comment.
Sen. Eva Díaz (D–22), a former Tolleson educator and current state senator, joined questioning. She asked whether Tolleson currently had a surplus and why a $125 million bond was being sought just months after loaning funds to another district. Díaz also raised concerns about whether voter-approved Maintenance & Operation (M&O) funds were being used appropriately.
Gress echoed that concern, stating, “How can voters be assured that Superintendent Calles won’t use funds earmarked for TUSD to benefit another district?”
Diaz has joined with the community-led group, Citizens for Greater Accountability to call for mass resignations at Tolleson.
Rep. Michael R. Carbone (R–25), House Majority Leader, pressed for financial accountability. He sarcastically asked whether Tolleson has a money problem, noting that Calles is reportedly the highest-paid superintendent in Arizona—by a margin of more than $150,000—despite the district’s persistently low proficiency scores.
“Where in statute does it allow you to act as a bank?” Carbone asked.
Calles defended the loan practice, saying it was not unique to Tolleson and “the only thing novel is that both sides of a tyrant’s action are a district.” Carbone responded: “It may not be novel—but it isn’t the role of a school district.”
Gress further clarified that while districts like Tempe and Kyrene lease land within their own boundaries, Tolleson’s arrangement extends outside its district.
“You have made a mockery of our laws,” he said. “The proficiency rates have gone down. You have the highest-paid teachers and the highest-paid superintendent in the state. This seems predatory,” said Gress.
Rep. Lisa Fink (R-27) pushed back on the district’s financial justification, stating that “making money for the district isn’t the same as impacting the future success of all students.” She emphasized that academic outcomes—not revenue strategies—should be the central priority.
Fink, a charter school creator, pushed back on Calles’ stated priorities. Calles had outlined the district’s twofold plan: first, to invest in teachers and improve retention rates; and second, to focus on driving student success. Fink argued that the emphasis on generating revenue and internal staffing failed to directly impact the future success of all students.
The new bombshell reporting was that not only is Calles a consultant but two members of the district also work for him.
Take a listen here at Senator Diaz probe Calles on whether district staff work for him:
Another revelation came from the City Manager of Tolleson, Reyes Medrano Jr., who has served in the role for over twenty years. He testified about a land transaction in which Calles requested that a specific broker be used—despite the city’s typical practice of not using brokers for such deals. The City Manager said the transaction should have gone through the normal procurement process. When he declined to use the broker, Calles proceeded to pay the broker anyway.
The City Manager said that Calles has been the most difficult Superintendent to work for in twenty years.
State 48 News reached out to Superintendent Calles for comment. He responded with the following statement:
Commercial land transactions are similar to real estate transactions where the seller typically is responsible for the 6% commission. If you sell a house and you do not use a real estate agent, but the buyer does use an agent, then as the seller you are still responsible for the 6% commission. Any procurement issues that were troubling Mr. Medrano were on his end, and I do see that we made an accommodation for him by agreeing to take on the responsibility of paying the broker in exchange for the City lowering the purchase price. The original purchase price in our first draft was $3,004,000 with the City paying for the broker. The final purchasing agreement reflects a purchase price of $2,850,000 with an expense of $85,500 for the broker’s commission showing as an expense to the Buyer on the Title Documents.
Part One ends here—but the story is far from over. In Part Two, we’ll break down more testimony that drew sharp reactions from lawmakers and what it could mean moving forward for Tolleson.
But there is one elected official who praised the loan that Calles spearheaded:
About that superintendent pay… Calles has an earning potential with bonuses at $491,000.
The meeting stretched beyond three hours and was filled with several memorable and at times tense exchanges. Here are some of the highlights: