Key Takeaways:
- The East Valley Institute of Technology (EVIT) has filed a counterclaim against nine member school districts suing it over funding for Career Technical Education (CTE) programs.
- EVIT claims the districts are sitting on over $42 million in unspent funds meant for CTE programs and are seeking to reduce the state funds it passes to them for their on-site CTE programs.
- The districts argue that EVIT’s proposed new Intergovernmental Agreement (IGA) would not offset the costs of providing satellite CTE courses and would cut their funding from 87% to as little as 70%.
- EVIT says it is seeking more control and accountability over the districts’ satellite programs, citing a 2024 Arizona Auditor General’s report that recommended strengthening oversight of fiscal decisions.
- The dispute involves tens of millions of dollars in state funding and affects over 26,000 juniors and seniors participating in CTE programs.
Introduction to the Dispute
The East Valley Institute of Technology (EVIT) has fired back at the nine member school districts suing it, including all three serving Gilbert, with a counterclaim of its own. The counterclaim is the latest development in a fight involving tens of millions of dollars in state funding that supports courses at EVIT’s two Mesa campuses and the nine districts’ high schools that prepare students for jobs after graduation. The dispute centers on the funding for Career Technical Education (CTE) programs, which are designed to provide students with hands-on training and preparation for high-need occupations.
The Lawsuit and Counterclaim
The nine school districts, including Apache Junction, Chandler, Cave Creek, Fountain Hills, Higley, J.O. Combs, and Queen Creek unified school districts, Gilbert Public Schools, and Tempe Union High School District, filed a lawsuit against EVIT after months of fruitless negotiations for a new Intergovernmental Agreement (IGA). The IGA would have allowed EVIT to channel millions in state funds it receives to fund the districts’ on-campus CTE programs. However, the districts are balking at EVIT’s demand to reduce the state funds it passes to them for their on-site CTE programs, as well as its demands for more control and accountability in their operation. EVIT’s counterclaim denies the districts’ claim on millions for their on-campus CTE programs and alleges that the districts are sitting on over $42 million that should have been spent on those programs.
The Funding Dispute
At the heart of the dispute is the issue of funding for the CTE programs. The districts claim that EVIT’s proposed new IGA would not offset the costs of providing satellite CTE courses, which include staff salaries, equipment, materials, and transportation costs. They argue that EVIT’s proposal would cut their funding from 87% to as little as 70%, which would make it difficult for them to continue offering high-quality CTE programs. EVIT, on the other hand, claims that it offered to pay the districts 83% of the state’s CTE funding, which would be the second-highest reimbursement rate among the 14 CTE districts in the state.
The Auditor General’s Report
EVIT’s counterclaim also cites a 2024 Arizona Auditor General’s report, which recommended that EVIT strengthen its oversight of the districts’ fiscal decisions to ensure that CTE programs remain high-quality and adequately prepare students for career success. The report found that neither EVIT nor its member districts collected complete data or used key student outcome data to assess the effectiveness of their programs. EVIT says that it is following the recommendations of the report by seeking more control and accountability over the districts’ satellite programs.
The Districts’ Response
The districts have asked for more time to respond to EVIT’s counterclaim, and a hearing has not yet been scheduled on the lawsuit and counterclaim. The districts have argued that EVIT’s proposed new IGA would not only cut their funding but also compromise the quality of their CTE programs. They have launched a public relations campaign, issuing a joint press release that emphasizes the importance of preserving equitable access to high-quality, on-campus CTE programs. The districts have also highlighted the accomplishments of some of their on-campus CTE programs at board meetings, emphasizing the need to protect satellite CTE programs to ensure Arizona’s future workforce.
Conclusion
The dispute between EVIT and the nine member school districts is a complex and contentious issue that involves tens of millions of dollars in state funding and affects over 26,000 juniors and seniors participating in CTE programs. While EVIT claims that it is seeking to strengthen its oversight of the districts’ fiscal decisions and ensure the quality of CTE programs, the districts argue that EVIT’s proposed new IGA would compromise the quality of their programs and cut their funding. The outcome of the lawsuit and counterclaim will have significant implications for the future of CTE programs in Arizona and the students who rely on them for career training and preparation.