lots of hundred dollar bills
Arizona Treasurer Yee Calls On Mitchell To Investigate Hobbs

June 13, 2024

By Daniel Stefanski |

Another Arizona official has weighed in on the pending investigation of the Governor’s Office.

On Monday, Arizona Treasurer Kimberly Yee sent a letter to Maricopa County Attorney Rachel Mitchell, requesting “that [she] investigate the allegations that have occurred in [her] jurisdiction.”

With the transmission of the letter, Yee became the latest elected official to insert herself into the discussion about what happened and what to do next with the recent allegations of improper use of state taxpayer dollars from Governor Katie Hobbs’ administration.

Less than a week ago, The Arizona Republic broke a story about the Arizona Department of Child Safety “approv[ing] what amounts to a nearly 60% increase in the rate that Sunshine Residential Homes Inc. charges to care for a child for a day.” The alleged action to approve the rate increase for the one organization was made while “DCS has denied pay increases to home operators and cut loose 16 providers during the contract renewal process.” The Republic also asserted that “no other standard group home provider was approved for any rate increase during Hobbs’ tenure.”

“As the Treasurer of Arizona, I am responsible for overseeing, safekeeping, and managing the State of Arizona’s securities and investments, which are duties I take seriously. Arizona taxpayers need financial accountability and deserve to know how their money is being spent,” said Arizona Treasurer Kimberly Yee. “Providing state dollars to political donors is a grave misuse of public funds. “Pay to play” and special favors have no place in state government.”

The Republican Treasurer also sent a letter to Arizona Attorney General Kris Mayes, highlighting the state’s top cop’s recent assertion to the State Auditor General and the Maricopa County Attorney that her office had singular control over any investigation “is not appropriate or authorized by law, as those entities have separate jurisdiction to investigate this matter.”

Yee added, “The Attorney General wrongfully asserted that she has singular control over any investigation. I have requested a separate investigation to be conducted by the Maricopa County Attorney’s Office. The Maricopa County Attorney’s Office has separate jurisdiction in this matter and the current investigation by the Attorney General’s Office raises concerns of potential ethical conflicts of interest in representing state agencies and officials involved in the alleged scheme.”

The maneuvering to stake out a claim to investigate the Governor’s Office seemingly began after Senate President Pro Tempore T.J. Shope sent a letter on June 5 to both Mayes and Mitchell, asking both officials to “examine the facts surrounding the Department of Child Safety’s alleged decision to approve a nearly 60% rate increase for Sunshine Residential Homes and determine if conduct by any of the involved parties warrants a criminal or civil investigation.”

State Representative Matt Gress followed up with a letter on June 6 to Mitchell, letting her know that “the Auditor General’s Office stands ready to partner with you in getting the facts about this troubling matter,” and that the Joint Legislative Audit Committee “will allocate the resources the Auditor General needs to help restore what appears to be a major breach of trust in our government.”

That day (June 7), Mayes fired off two letters to both Mitchell and the Arizona Auditor General, Lindsey Perry, over the investigation. Mayes told County Attorney Mitchell that “it would not be appropriate or in the best interest of the state to conduct parallel investigations into the same matter,” and that “a separate process conducted by the MCAO could jeopardize the integrity of the criminal investigation that my office will now proceed with.”

Mayes similarly told Auditor General Perry that “while [the Auditor General’s] office is statutorily authorized to examine records and conduct audits at the direction of the Joint Legislative Audit Committee, at this time, the assistance of [her] office is not needed by the Attorney General’s Office for our investigation.”

The letters from Mayes led to the communication from Yee, who will likely not be the last Arizona official to comment on the direction of this pivotal investigation.

Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.

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