Horne: Yee denial of cash advance to Nadaburg district irresponsible – affects 1,500 students

ADE Finance staff determined the advance is proper and needed

PHOENIX – State schools superintendent Tom Horne is calling on State Treasurer Kim Yee to reconsider her denial of a justified cash advance to the Nadaburg school district, calling her current actions irresponsible.

Horne stated: “Our Finance Division did its research and determined that Nadaburg is operating within its budget, and by the end of the year they will have a projected positive cash balance of $1.3 million. Initially it was thought that they would have a negative cash balance at the end of the year, but the Department of Education, being a service institution, checked the forms and found the district made an unintentional clerical error that they can correct. In the meantime, the cash advance will ensure uninterrupted district operations through October while the error is being reconciled. If the Treasurer does not change her mind, the irresponsible failure to advance the funds will have a negative impact on the education of nearly 1,500 students. This should be our first priority.”

He added, “The Treasurer could have done the same review because she has the necessary forms, which were provided to her by our office, and her office failed to follow up with us to determine why we approved the advance. The advance request was sent to the State Treasurer on August 22, 2025, over a month ago. At first, she denied that she had a role to play. We cited to her the relevant statute (A.R.S. 15-973(C)) showing that her approval was needed. The Treasurer reviewed the request multiple times between August 22 and September 5 but did nothing. Finally, she issued a denial on September 24, claiming the possibility of ‘financial mismanagement’ for which there was no evidence. I therefore call her to change your position and approve this proper cash advance.”

District cash advances are common because a school district’s income and expenses may fluctuate. As long as the district’s cash position is positive by the end of the year, and the funds will be paid back, cash advances are allowable.

The Nadaburg district is located northwest of Phoenix near Wittman.