Tolleson Superintendent Grilled Over Real Estate Deal That ‘Reeks Of Corruption’

July 27, 2025 ADI Staff Reporter
superintendent
TUHSD Superintendent Jeremy Calles

Arizona Joint Legislative Audit Committee (JLAC) Co-chairs Representative Matt Gress and Senator Mark Finchem are intensifying scrutiny of the Tolleson Union High School District (TUHSD) following a heated meeting on Monday, uncovering a web of suspect real-estate deals and ethical questions surrounding Superintendent Jeremy Calles.

The Arizona House Republicans, who detailed the findings in a thread on X.com, are now calling for a formal audit by the Auditor General and potential legislative reforms to address what they describe as exploitative loopholes. Arizona Auditor General Lindsay Perry was sitting in the hearing room’s front row and conspicuously took notes throughout the hearing according to AZFree News.

The controversy revolves around TUHSD’s questionable financial maneuvers under Calles leadership, including a $25 million real estate transaction with the struggling Isaac Elementary School District. According to Rep. Matthew Gress (R-AZ), the deal involved TUHSD leasing a school property in Maryvale—outside its district—without appraisal, followed by Isaac leasing it back to TUHSD with interest payments structured like a loan.

Gress explained during the meeting, “Here’s an arbitrage play where I can make $7 million off of a beleaguered school district that’s going to have to issue a bond and fleece it’s taxpayers to pay back the $7 million in interest plus the $20 million balloon payment in five years. Tell me, Mr. Calles, how this is helping anybody. To me this seems predatory.” as captured in the X thread posted by @AZHouseGOP.

Superintendent Calles, who also runs two private consulting firms specializing in school finance, admitted to using his district office for private business. Under repeated questioning from Gress, Calles conceded, he utilized his District office to conduct personal business during working hours, a statement that left lawmakers visibly stunned. The revelation included his solicitation of business from Isaac Elementary, where his firm later secured a purchase order, raising concerns about potential conflicts of interest.

Sen. Mark Finchem was among the most vocal critics, labeling the district’s operations a “cash generation machine.” His concerns were echoed by a separate TUHSD project: a 99-year ground lease for a housing development, funded through a voter-approved bond. Rep. Lisa Fink (R-AZ) pressed Calles on the issue, asking, “How were the voters informed of this project?” Gress followed up, inquiring, “Did that bond pamphlet say that you were going to use the parcel purchased as a revenue-generating tool that is relying on a housing deal? Did the voters know that?” Calles’ response—that such details were not disclosed—drew gasps from the committee.

The meeting also shed light on Calles’ attempt to involve the City of Tolleson in a questionable land deal. He asked the city manager to accept an additional $85,000 to pay a broker not officially hired by TUHSD, explaining, “It would be cleaner for me.” The city refused, a decision highlighted in the X thread with accompanying footage. Additionally, the Tolleson Police Chief testified that TUHSD staff requested the removal of unwanted public commenters during meetings, a move the police wisely rejected.

Calles’ compensation has further fueled the outrage. House Majority Leader Michael Carbone (R-AZ) asked, “Is it true that you’re the highest paid Superintendent in the state by over $150,000?” Media reports cited in the thread suggest Calles’ package totals $491,000, dwarfing the $257,000 salary of the Mesa Unified School District superintendent, who oversees a larger district. When Carbone challenged, “Where in statute does it allow you to act as a bank?” Calles’ response—that not every district has a superintendent willing to “stand in front of you like this”—left lawmakers perplexed.

The ethical breaches extend to TUHSD staff, with Calles admitting that two current governing board members or district employees work for his consulting business. Sen. Eva Diaz (R-AZ) pressed for details, to which Calles confirmed, “Yes, two ‘currently.’”

Rep. Gress summarized the committee’s concerns in a closing statement: “You are figuring out every possible loophole that you can legally finagle in order to advance your consulting company… this warrants further legislation… and I also believe it warrants further review by the Auditor General.” The JLAC is expected to act on this recommendation soon, marking a significant escalation in oversight of Arizona’s public-school districts.

An investigation from the Auditor General seems the next likely step, and is something that Calles told 12News he has anticipated. “When Auditor General’s Office finally sends me someone. I’ll give them the full story,” he told the outlet.

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3 Comments

  2. Arizona…come for the sunshine…stay for the graft and corruption. Where is the federal government to audit every one of our communities?! Decades of rot and it just keeps on going.

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