Arizona Governor Katie Hobbs under investigation for suspected pay-for-favor scheme
Recent allegations have surfaced regarding Arizona Governor Katie Hobbs and a potential “pay-for-play” scandal involving a group home business that caters to vulnerable children. The Arizona Attorney General Kris Mayes, a Democrat, has launched an investigation into these claims after receiving a request from Republican state Sen. T.J. Shope.
The scrutiny began after a report by The Arizona Republic revealed that Sunshine Residential Homes, which operates group homes for foster children, was granted a significant increase in taxpayer funds through the Arizona Department of Child Safety (DCS) after making donations to Hobbs’ inauguration and the Arizona Democratic Party.
According to the report, Sunshine Residential Homes donated approximately $400,000 to Hobbs, her campaign, and the state Democratic Party since July 2022. Following these contributions, the company requested a rate increase for their services, which was initially denied by DCS in February 2023. However, after a $100,000 donation from Sunshine was credited to Hobbs’ inaugural campaign, the rate hike was approved in May 2023, allowing the company to receive $234 per day for standard group home services – significantly higher than the average rate for other providers.
Notably, no other group home provider in the state received a rate increase during Hobbs’ tenure, raising questions about the decision-making process and potential conflicts of interest. Sunshine cited financial challenges due to the COVID-19 pandemic and inflation as reasons for requesting the increase.
State Sen. T.J. Shope expressed concern over the situation, highlighting the millions of dollars involved and the lack of similar rate increases for other providers. He also emphasized the need for investigators to determine the facts surrounding the alleged “pay-for-play” scheme.
Maricopa County Attorney Rachel Mitchell has also been contacted regarding the matter, underscoring the seriousness of the allegations and the need for a thorough investigation. Nick Klingerman, chief counsel of the criminal division in Mayes’ office, confirmed that they are obligated to look into the claims and will be opening an investigation.
A spokesperson for Hobbs’ office has vehemently denied the accusations, stating that the governor’s office had no influence over DCS’s decision to approve the rate increase for Sunshine Residential Homes. The spokesperson emphasized Hobbs’ dedication to advocating for Arizona families and children, rejecting any insinuation of neglecting foster care responsibilities.
This controversy arises as the state aims to transition vulnerable children from group homes to family settings, reducing reliance on institutional care. The DCS has reportedly terminated contracts with 16 providers during the renewal process, signaling a shift towards more family-oriented care for foster children.
As the investigation unfolds, it remains to be seen how the allegations against Governor Hobbs will be addressed and what implications they may have for the administration’s policies on child welfare and foster care in Arizona.
