By Jonathan Eberle |
Newly surfaced documents and internal communications are raising new questions about political influence inside the Arizona Department of Child Safety (DCS), prompting calls for accountability from legislative leaders. Senate President Pro Tempore T.J. Shope is urging state and county prosecutors to provide an immediate update on whether investigations into the matter remain active.
The controversy centers on Sunshine Residential Homes, a group home provider that recently received a 30% rate increase from DCS. The company has been a significant donor to Governor Katie Hobbs and multiple Democratic political groups—connections that agency employees reportedly flagged as a source of concern.
According to internal messages and financial records reviewed by lawmakers, DCS staff expressed discomfort with the approval process for the rate hike. Employees referenced Sunshine Residential’s political ties to the Governor and suggested the situation placed agency leaders in an “uncomfortable position,” particularly after the provider allegedly pressured the state by threatening to shift services to the federal system unless the increase was approved.
Despite warnings that the higher rate would deepen an already-projected $13 million budget shortfall, DCS moved forward with the decision. Documents also show Sunshine Residential cited a substantial financial deficit to justify its request. However, financial records reportedly indicate the provider had $440,000 in operating income—figures that independent accounting experts said appeared inconsistent with the claimed shortfall.
These discrepancies have intensified questions about whether political considerations influenced decisions affecting vulnerable children in state care. In a letter sent Thursday to Attorney General Kris Mayes and Maricopa County Attorney Rachel Mitchell, Shope requested confirmation that any investigations into the potential “pay-to-play” conduct are ongoing. He also asked prosecutors to update the Legislature on the status of their reviews.
“These revelations are deeply disturbing,” Shope said. “If a provider donating hundreds of thousands of dollars to the Governor then pressures the state for a massive rate increase—and receives it—Arizonans deserve to know whether political influence played a role.”
Shope emphasized that the issue extends beyond partisan lines. “This is not a partisan issue—it’s a public trust issue,” he said. “If political donations influenced decisions inside DCS, especially decisions involving vulnerable children, that is unacceptable. We intend to get to the bottom of this.”
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
