AZ’s Democrat AG investigates Gov. Hobbs for alleged corruption

Arizona Governor Katie Hobbs is under investigation for an alleged “pay-for-play” scheme after it was reported that a group home business for vulnerable children received a rate hike following donations to her inauguration and the Arizona Democratic Party.

Arizona Attorney General Kris Mayes, a fellow Democrat, initiated the investigation in response to a request from state Senator T.J. Shope, a Republican, and the Arizona Senate president pro tempore. This request followed a report by The Arizona Republic that revealed Sunshine Residential Homes, which operates group homes for foster children, was approved for a nearly 60% increase in taxpayer funds after initially being denied.

The Arizona Republic’s investigation found that Sunshine Residential Homes donated approximately $400,000 to Hobbs, including contributions to her campaign, inauguration, and the state Democratic Party. Despite previously being denied a rate increase, Sunshine Residential Homes eventually secured a substantial hike shortly after making the donations.

Records show that Sunshine Residential Homes sought a 20% rate increase in December 2022, but the Arizona Department of Child Safety (DCS) refused the request on February 6, 2023. Just three days later, a $100,000 check from Sunshine was credited to Hobbs’ inaugural campaign. By May 2023, Sunshine Residential Homes received approval for a rate increase to $234 per day, significantly higher than the average $169 for other group homes.

Governor Hobbs’ office, however, stated that the payment was made on December 15, 2022, and denied any involvement in the DCS decision regarding Sunshine’s pay. A spokesperson for Hobbs said, “Just like past investigations instigated by radical and partisan legislators, the administration will be cleared of wrongdoing. Governor Hobbs is a social worker who has been a champion for Arizona families and kids. It is outrageous to suggest her administration would not do what’s right for children in foster care.”

Shope expressed his concerns about the timing and scale of the rate increase, stating, “We were talking about millions of dollars, and to know that not many, if any at all, have seen rate increases that large, it was definitely troubling.”

The investigation will be conducted by the Criminal Division of the Attorney General’s Office, as noted by Nick Klingerman, the division’s chief counsel. “The Criminal Division of the Attorney General’s Office is statutorily authorized to investigate the allegations and offenses outlined in your letter. To that end, the Attorney General’s Office will be opening an investigation,” he wrote.

This controversy comes as Arizona is aiming to reduce the use of group homes and transition vulnerable children into family settings. The DCS has denied pay increases to other home operators and terminated contracts with 16 providers during the renewal process, according to The Arizona Republic.

Governor Hobbs’ office has firmly denied the accusations, maintaining that the administration will be vindicated. The situation highlights ongoing debates about the role of political donations and the integrity of administrative decisions concerning public funds and vulnerable populations.

1 thought on “AZ’s Democrat AG investigates Gov. Hobbs for alleged corruption”

  1. I hope they do not pass over this if it is confirmed. She needs to go if that’s the case. She needs to be impeached overwhelmingly. We as conservatives need to take back our states and country from radical left that think that they can do anything they want without consequences.

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