Severe financial issues created concern as to the future of the Pappas schools. In 2006, it was discovered the Maricopa County Board of Supervisors had diverted and withheld more that $3.8 million in funding to the school. In an attempt to conceal the funding scheme, county leadership led by County Manager David Smith, enlisted the assistance of the Sheriff and alleged that Dowling misappropriated the funds instead. A massive legal and public battle ensued that led to an investigation into certain accounting practices called into question a number of officials related to the school. During the court proceedings it was discovered and entered into the court records that county leaders and the Sheriff "lied, misled and distorted evidence" presented to the grand jury. Counts that were remanded back to the grand jury were never refiled and the remaining counts were dismissed and Dowling and other leaders that had been targeted were exonerated. However, the public fight took its toll on the district's leadership and teachers, fearing they would not get paid, were taking other job opportunities. . Judicial intervention and an outpouring of support from local charities secured the schools for a brief time.