The Joint Legislative Budget Committee (JLBC), led by Representative David Livingston (R-28), convened on Thursday to address what it described as a financial mismanagement crisis within Governor Katie Hobbs’ administration. The focus of the meeting was the Department of Child Safety’s (DCS) Congregate Care program, which is reportedly facing imminent financial collapse.
The JLBC directed DCS to use existing funds within its budget to maintain services for vulnerable children without seeking additional taxpayer dollars. According to Chairman Livingston, Governor Hobbs’ approach to budgeting has resulted in repeated financial emergencies.
“Governor Hobbs’s repeated failures to manage the budget responsibly have pushed agencies into crisis after crisis. Her administration’s approach is to overspend, ignore reality, and then demand a last-minute bailout. That’s not leadership—that’s recklessness,” Livingston stated.
Republican legislators accused the Governor’s team of failing to disclose available federal funds that could have been used to stabilize the Congregate Care program. Instead, they said that those funds were redirected to a separate Kinship Support Services initiative that had not previously received state funding.
“That decision by the Governor is stunning,” Livingston said. “Instead of prioritizing the program on the brink of insolvency, she chose to send federal dollars elsewhere. This raises serious questions about her administration’s priorities and decision-making.”
Beyond the immediate concerns with DCS, lawmakers also raised alarms about the Developmental Disabilities (DDD) program, which they claim is on track to run out of funds by April. Speaker of the House Steve Montenegro announced the formation of a House Ad Hoc Committee on Executive Budget Mismanagement to investigate what Republicans see as a pattern of fiscal irresponsibility under Governor Hobbs’ administration.
“We care deeply about the children in DCS’ care. That’s why we acted quickly today,” Livingston stated. “The Legislature will not reward fiscal irresponsibility by throwing more taxpayer dollars at a crisis of the Governor’s making. Moving forward, the Governor must be more transparent and accountable about her agency budgets.”
The coming weeks will likely see further debate as lawmakers seek answers regarding the state’s financial outlook and agency funding priorities.
Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.
On Monday, Arizona House Republicans revealed that the Department of Child Safety’s (DCS) Congregate Care program is bound for bankruptcy in a week’s time and announced the creation of a House Ad Hoc Committee to investigate the responsibility of Democrat Governor Katie Hobbs for a series of fiscal failures.
Arizona House Speaker Steve Montenegro, joined by Majority Leader Michael Carbone, Majority Whip Julie Willoughby, Speaker Pro Tempore Neal Carter, and members of the House Republican Majority called out the governor directly. “This is not a simple oversight—it is gross financial mismanagement at the highest level,” said Speaker Montenegro. “Governor Hobbs has made a habit of overspending, ignoring reality, and then sounding the alarm only when disaster strikes. The difference here is that Arizona’s children will be the ones to suffer for her failures. That’s why I’m taking immediate action.”
The Speaker continued, “This is a pattern. Congregate Care is set to go bankrupt next week. The Governor’s mismanaged Developmental Disabilities program will collapse by the end of April. Her administration failed to budget for formula growth in AHCCCS for two years straight—racking up hundreds of millions in unaccounted costs. The list goes on. This is not leadership. This is incompetence.”
“The people of Arizona didn’t elect us to stand by while the Governor manufactures crisis after crisis. House Republicans will ensure accountability and enforce responsible budgeting, but we expect the Governor to take ownership of her failures. That starts with making her staff available to the Legislature so we can fully understand the depth of this mismanagement and pursue the right solutions. Governor Hobbs may be comfortable with chaos, but we are not.”
As reported by AZ Free News in February, Treasurer Kimberly Yee reported on the allegations against the Hobbs administration in a letter to Chairman of the Arizona House Appropriations Committee, Rep. David Livingston.
In a statement at the time, Livingston said, “I appreciate Treasurer Yee’s clarity in addressing the financial mess Governor Hobbs has created. The issue isn’t ‘missing money’—it’s blatant mismanagement.”
“Under the Governor’s feckless leadership, state agencies are making massive spending decisions with zero legislative oversight, ballooning costs, and expecting taxpayers to foot the bill. This kind of incompetence cannot stand.”
The release from Montenegro detailed that the House Ad Hoc Committee on Executive Budget Mismanagement will examine “how the Governor has consistently mismanaged the budget, ignored financial reality, and allowed critical services to reach the brink of collapse before taking action.”
The Speaker also directed the Chairman of the Joint Legislative Budget Committee to summon the Committee to order and instruct Governor Hobbs to redirect existing funds to handle the crisis and prevent harm to the children in DCS custody noting, “The Governor’s administration failed to spend wisely, and it is their responsibility to fix this situation—not the Legislature’s job to bail them out.”
Arizona legislative Republicans are readying the wheels of accountability and oversight after a bombshell report concerning a state department under the governor’s purview.
This week, the Arizona Republic reported on 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, meaning potentially millions of dollars more going to the company at taxpayers’ expense.” This action was taken as “DCS has denied pay increases to home operators and cut loose 16 providers during the contract renewal process.” The Republic asserted that “no other standard group home provider was approved for any rate increase during Hobbs’ tenure.”
The report highlighted that this organization “has undertaken a new six-figure spending campaign benefiting Hobbs and Democratic politics in Arizona.” According to a release issued by Senate Republicans, the donations from Sunshine Residential Homes totaled “approximately $400,000, going towards the Arizona Democratic Party, Hobbs gubernatorial campaign, as well as her inauguration fund.” The Republic also stated that Sunshine’s CEO “was on Hobbs’ inaugural committee.”
Senate President Warren Petersen vowed to hold the Governor’s Office accountable for this action from DCS. He wrote, “Arizonans deserve to know how their elected officials are spending their money, and this case raises a major red flag with what’s happening behind closed doors on the ninth floor. With the state in the middle of a budget shortfall, and with what appears to be a pay-for-play scheme now exposed, the Legislature has a lot of questions we will be seeking answers to from both the Governor’s office and DCS. Our citizens deserve better. Rest assured, we will continue to serve Arizonans as the check and balance against any abuse of power displayed by our Executive and the agencies under her administration.”
🚨FOR IMMEDIATE RELEASE: Senate Republicans Condemn Katie Hobbs for Rewarding Dysfunctional Group Home Millions in Taxpayer Dollars After Receiving Campaign Donations
Former State Legislator David Lujan serves as the Cabinet Executive Officer of DCS. He was not confirmed by the Arizona Senate to serve as a “director” after Hobbs pulled his name – and many others – from the nomination process after several of her appointments faced intense scrutiny by Republicans in that legislative body.
“This is a disgusting abuse of taxpayer dollars to further her political career, and our hardworking citizens deserve answers as to how she got away with this,” said Senate President Pro Tempore T.J. Shope, Chairman of the Senate Committee on Health & Human Services. “Knowing Arizona’s Governor and the Arizona Democratic Party are providing preferential treatment to a facility alleged to have engaged in negligence leading to the death of a child is unconscionable. Our children are our most precious population, and the state should be doing everything in its power to discourage abuse and neglect, not reward it. How can we trust Hobbs, Democrats, and DCS after these disgraceful transactions that wreak of corruption? This is a prime example of why I sponsored SB 1571. The public has a right to know who is donating to Hobbs, and what favors those entities are receiving in return.”
SB 1571 “instructs candidate committees for statewide candidates to file campaign finance reports during each calendar quarter comprising the forty-eight-month period before the general election,” according to the overview from the Arizona House of Representatives. After receiving overwhelmingly bipartisan support in both the state House and Senate, it was signed into law by Hobbs in April.
Arizona State Treasurer Kimberly Yee weighed in on the shocking news from the Hobbs’ administration, saying, “This is highly concerning and raises more questions than it answers. ‘Pay to Play’ and special favors have no place in state government.”
This is highly concerning and raises more questions than it answers. "Pay to Play" and special favors have no place in state government. https://t.co/48VEDlswr0
A Republican law to protect missing children in Arizona has been signed into law.
This week, State Representative Barbara Parker championed the success of her bill HB 2479, which will “provide for the establishment of a Missing, Abducted and Runaway Children Unit within the Arizona Department of Child Safety (DCS) if DCS fails to comply with statute; [and] revises various other requirements related to the recovery efforts for a child who is missing, abducted or runaway (disappeared)” – according to the overview provided by the Arizona House of Representatives.
✅State Representative Barbara R. Parker Celebrates New Law Improving Safety & Recovery Efforts for Missing Children in Arizona
“I couldn’t be prouder that HB 2479 has been signed into law. When I came to the legislature, I didn’t have any idea I would focus on this issue. Yet,… pic.twitter.com/B4gXpHlBGM
— Arizona House Republicans (@AZHouseGOP) May 15, 2024
Governor Katie Hobbs signed the bill into law on April 10.
In a statement to accompany her announcement about the bill signing, Parker said, “I couldn’t be prouder that HB 2479 has been signed into law. When I came to the legislature, I didn’t have any idea I would focus on this issue. Yet, two young women who went missing were eventually found dead in my district leaving members of our society shell-shocked and necessitating stronger interventions immediately. These tragic incidents make me determined not to forget or abandon even ONE child while serving in office since I have seen their heart wrenching consequences at close range.”
The Republican State Representative added, “The new statute will promote children’s welfare by holding its child safety systems accountable and significantly enhance our efforts at avoiding such misfortunes as well as assisting those affected families. I’m so grateful to my colleagues, Senator Farnsworth, and the foster care community who were involved in perfecting the legislation along the way. Thank you!”
Parker noted that her newly enacted bill “builds upon another law that she wrote last year, HB 2651, aimed at changing DCS’ reporting obligations when children go missing or are abducted or run away.”
Back in February, the bill passed the Arizona House with a bipartisan vote of 37-20 (with two members not voting and one seat vacant). After it was transferred to the state Senate, it was amended and passed with a 27-0 result (with three members not voting). The state House then concurred with the Senate’s changes with an overwhelming 46-12 tally (with two members not voting).
On the Arizona Legislature’s Request to Speak system, representatives from the EPIC Group and Arizona National Organization for Women signed in to support the proposal, while representatives from the Arizona Department of Child Safety and Arizona Association of Chiefs of Police indicated their neutral standing on the bill.
HB 2479 will go into effect 90 days after the conclusion of the 2024 Arizona Legislative Session.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
The 2023 Arizona legislative session may be in the state’s rearview mirror, but one lawmaker is championing one of her bills that was signed into law earlier this summer.
Republican Representative Barbara Parker issued a press release last week, lauding the passage and signing of her bill, HB 2651, which “requires the Department of Child Safety to fulfill additional notification and reporting requirements relating to cases involving missing, abducted or runaway children.” The legislation was signed into law by Democrat Governor Katie Hobbs on June 19.
✅FOR IMMEDIATE RELEASE✅ State Representative Barbara Parker Transforms Department of Child Safety Requirements for Reporting Missing, Abducted, or Runaway Children
According to the release from Representative Parker, “ARS 8-810, the Child Safety statute, had no time frame requirement listed to report when a child in state custody went missing. In 2014, Congress passed the Preventing Sex Trafficking Act, which required states to develop policies and procedures for ‘expeditiously locating any child missing from foster care’ and ‘determining the child’s experiences while absent from care, including screening the child to determine if the child is a possible sex-trafficking victim.’ Tragically, audits from the federal Inspector General’s Office and the State Auditor General proved that Arizona’s Department of Child Safety, was not in compliance with either state or federal standards.”
“I did not expect to run this bill, but on January 21, 2023, just 12 days after I was sworn into office, two teen girls were found dead in a water-filled retention basin in my legislative district just blocks away from their group home,” said Representative Barbara Parker. “There was no media coverage of their disappearance until their bodies were found 15 days later. The community where they lived was never given the opportunity to look for them, and it was then that a constituent and foster care advocate, Anika Robinson, reached out to me regarding serious issues regarding the reporting standards of DCS.”
The bill first passed the House on March 1, 31-28 (with one member not voting). It was amended in the Senate and passed unanimously in that chamber on June 12, 30-0. The House concurred with the Senate’s changes, passing it on June 13, 56-2 (with two members not voting).
Representative Parker added, “The state should have done more for Sitlalli Avelar and Kamryn Meyers. The vulnerable teens’ disappearance could have been reported to the media in the first 24 hours. Both were on medication for behavioral needs and were at risk for sex trafficking or harm due to their acuity. The National Foster Youth Institute estimates that sixty percent of child sex- trafficking victims are often found to be in state-controlled foster care or child welfare systems. This new law will change this terrible statistic, requiring mandatory 24-hour reporting with detailed deliverables and protocols for each situation of missing, abducted, or runaway children, along with treatment, training, legislative audit oversight, and a detailed checklist explaining how all of this will be communicated to the proper authorities in a timely manner.”
The President of ASA Now and Jacob’s Mission Community Center, Anika Robinson, also weighed in on the success and significance of this legislation, saying, “This bill signing not only brings renewed hope to foster parents but also establishes a strong framework that acknowledges the significance of collaborative efforts between state agencies, foster parents, and the community in protecting and finding missing foster children. By prioritizing the prompt reporting of missing foster children in accordance with federal requirements, engaging the public through the media package, and having proper training for state personnel, Arizona sets an exemplary standard for other states to follow, reaffirming its commitment to the well-being and safety of foster children.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
