Sanchez, Grijalva push for centers, use M&O funds
An alleged fraud has been perpetrated by Tucson Unified School District Superintendent H.T. Sanchez in the matter of the funding for the new Early Learning centers.
Sanchez has claimed for months that loans were obtained to fund the centers, however, he has been skimming money from the M&O budget to fund the union supported centers. According to TUSD Board member Mark Stegeman, the loans that Sanchez claimed were obtained to fund the center are “mythical.”
In a letter to constituents he notes that a story in the Star on July 6 stated “While [TUSD superintendent] Sanchez originally hoped to use desegregation funds to pay for the early learning centers [at Brichta and Schumaker], the district instead took out a low-interest loan to cover startup costs. It will take four to five years to pay off the loan, unless enrollment picks up, allowing the district to pay it off sooner.”
The Star reporter clearly did not ask to see the loan documents. “In fact: the loan never existed. The startup costs for the early learning centers were financed entirely out of current operating funds,” writes Stegeman. For months, the Arizona Daily Independent, parties in a lawsuit against the District, Board members Michael Hicks and Stegeman have tried to secure the “mythical” loan documents. Because the standard operating procedure in the Sanchez administration includes a refusal to turn over public documents in a timely manner, few suspected that the reason the documents were not forthcoming was because they did not exist.
The Special Master, appointed by federal Judge David Bury, and the plaintiff representatives in the desegregation case had rejected the proposal by Sanchez and the Board majority led by Board President Adelita Grijalva to fund the daycare centers with desegregation funds. At the March 25 Governing Board meeting, Sanchez claimed the centers would assist the District in “retaining and recruiting quality teachers.” However, those same teachers are now facing possible pink slips as the District sinks deeper into the red.
In that March 25 meeting, Sanchez advised the Board that he had had conversations with Pima County Supervisor Richard Elias and Pima County administrator Chuck Huckelberry to discuss developing an IGA. Elias, who has a notorious and legally costly history of funneling money away from needy children to the benefit of adults, supported Sanchez’s scheme, according to the superintendent. “ I did have a conversation with County Supervisor Elias,” said Sanchez, “ as well as Counties administrator Chuck Huckelberry and they’re very interested and I believe this going before – you know – we’re going to get an IGA written and that’s gonna go before the County Board of Supervisors as a point of actually retaining recruiting some of the people at the County. I have a conversation with- with – Mr. Miranda as well.”
Prior to making the motion to approve the funding, President Grijalva stated, “We’re not trying to be competitive with other community preschools because the price for the community is actually a little less than what I pay now but it’s not significant. So we’re not trying to make money off of this and push other mom and pops out of business, we’re simply saying to employees this is an opportunity….. I like the idea of working with the County and the City because if there’s ever a concern that the facility is not full enough and we start to run in the deficit – that would be problematic and that would be something that everyone is looking at – so my hope is that will be able to work this out with the plaintiffs if this is not an appropriate use of desegregation funds then billing this out over five years and letting us recoup the expense through tuition is something I’d support.”
Sanchez claimed that he was going to reach out to Pima College and the University of Arizona as well. The measure to spend more than $1.3 million to renovate two closed elementary schools for the child-care centers passed. Just last week, the AZDI reported that in response to an inquiry by Hicks, former Deputy Superintendent Yousef Awwad revealed that the District is in serious financial trouble with lay-offs likely to result. Stegeman advised constituents in a letter at the time, that Awaad “has projected that TUSD will have barely have enough cash to get through June. He expects that TUSD is not actually spending money at the budgeted rate, partly because of unfilled vacancies, but if it is spending at the budgeted rate then he recommends midyear budget cuts including a hiring freeze no later than January 1.”
Hicks and Stegeman called for a public discussion of the serious financial crisis, but Grijalva has blocked that request. In response, Nick Pierson, the leader of Tus Vecinos en el Barrio, announced that the group will be “hosting a press conference with TUSD Board Members Dr. Mark Stegeman and Michael Hicks to support their position that an investigation and audit of TUSD’s deficit spending be conducted by the oversight body of the Arizona State Legislature. This is especially critical in view of the fact that Deputy Superintendent Yousef Awwad recently resigned and cited concerns with District Finances.”
Hicks said on Sunday, “There appears to be a disturbing pattern emerging in the District’s leadership. The leadership claimed they were borrowing the money to retain and recruit good teachers, and now because of their recklessness we could be losing good teachers and other schools staff. The disregard by the District’s leadership for the true purpose of the desegregation funds, which is to ensure that all children have equal access to the best educational opportunity we can afford, is really disappointing. Our kids, our staff, and the taxpayers deserve better than this.”