by Warren Petersen | Feb 12, 2026 | Opinion
By Sen. Warren Petersen |
Over the past couple of months, the nation’s eyes have (rightfully) been turned to the State of Minnesota, as concerned citizens have unearthed what appears to be significant abuses of taxpayer dollars going to seemingly fraudulent daycare and healthcare centers run by Somali immigrants. These discoveries have exposed Minnesota Democrat officials, who have (at the least) looked the other way as this fraud was ongoing and escalating.
Minnesota isn’t the only state where we are seeing this rampant misuse of hard-earned taxpayer dollars.
Over the past three years, Arizona has been governed by a Democrat Governor and Attorney General, Katie Hobbs and Kris Mayes. These two have combined to cultivate a culture of corruption in the Grand Canyon State that rivals the illegal shenanigans from Minnesota. There have been several instances of this abuse and chicanery from the Governor’s Office that the Attorney General’s Office has clearly provided cover for during this term in office.
Whether in Minnesota or Arizona or any other state or jurisdiction across the country, American taxpayers deserve honest, transparent public servants, who are committed to putting the interests of citizens above the political elite. Thankfully, for the people of Arizona, the Republican-led state legislature has worked to hold these lawless Democrats accountable to the rule of law, though Hobbs and Mayes continue to stonewall our efforts and perpetrate new avenues of corruption.
Inaugural Fund
Fresh off taking the oath of office, Hobbs proved herself unable to provide complete transparency to citizens with her inaugural fund. Arizona Governors have historically raised money to cover the expenses of their inaugurations, then transferred the excess funds to the state. However, Hobbs was reticent to share certain information of her donors and then withheld more than one million dollars from the state, forcing a clash with the legislature. This breakdown in transparency from the Governor’s Office led to legislation that codified the precedent predating Hobbs into law to mandate reporting of all future inauguration expenses and funds raised. The bill’s passage was overwhelmingly bipartisan – a rare feat in Arizona’s divided government, proving that Democrats understood the mess Hobbs had created for herself.
Hobbs Pay to Play
Likely the most egregious action of Hobbs’ administration to-date, the alleged pay-to-play scandal will define the culture of corruption surrounding her administration. Almost two years ago, The Arizona Republic reported that a for-profit, state-contracted group home operator, Sunshine Residential Homes, received a significant rate increase approval from the Hobbs-led Department of Child Services (DCS). Leading up to this rate increase, the group donated to Hobbs’ inaugural fund – after its request for a rate increase had been denied by the outgoing Republican administration. The reporting showed that Hobbs had not approved rate increases to any other group homes, nor were the rate averages for these group homes comparable with Sunshine Residential Homes. Additionally, DCS ended state contracts with 16 group homes, making the arrangement with Sunshine all the more suspicious.
Attorney General Kris Mayes did go through the motions of announcing an investigation into this alleged pay-to-play, but she attempted to order Maricopa County Attorney Rachel Mitchell and the Arizona Auditor General off the case – despite those offices being asked to investigate the uncovered scheme by state legislators. Mayes was soundly rebuked by Arizona Treasurer Kimberly Yee, who also requested that the Maricopa County and State Auditor General investigations continue. The Democrat Attorney General was also accused of a conflict of interest in that she was again shielding her same-party official from the full weight of accountability under the law. There have been no updates from Mayes’ office into the status of this investigation in almost two years, leading credence to the idea that this was a cover-up meant to protect Hobbs and her administration. Compounding the shady behavior from her administration, Hobbs vetoed a bill during last year’s legislative session meant to fool-proof future executives from exploiting any perceived loopholes to perpetuate this kind of abuse.
SNAP
The Supplemental Nutrition Assistance Program (SNAP) program doles out almost $100 billion annually to Americans to purchase food. However, like many government programs, this one is rife with fraud and theft. According to the U.S. Government Accountability Office, there were over $320 million in stolen benefits between October 2022 and December 2024. Additionally, the U.S. Department of Agriculture reported in 2023 (during the Biden administration) that approximately twelve percent of these benefits were fraudulent. The politics and policies of this bloated program aside, it is undeniable that SNAP needs more oversight and guardrails to ensure that taxpayer dollars are being stewarded appropriately.
Hobbs and Mayes disagree. Mayes sued the Trump administration over its commonsense efforts to request more information from states on SNAP beneficiaries. Hobbs, for her part, refused to acquiesce to the administration’s data requests. These two are politicizing an issue that should enjoy consensus across party lines. No government official should be standing in the way of efforts to root out fraud in any public program, where taxpayer dollars are at risk for abuse. Every taxpayer dollar should be protected to the highest level. Unfortunately, for Arizona, Katie Hobbs and Kris Mayes don’t want the federal government – and the taxpayer – to find out exactly how much fraud is in our state; and that’s a shame.
Mayes Pay to Play
U.S. Congressman Abraham Hamadeh has asked the U.S. Department of Justice to investigate an alleged pay-to-play bribery scheme involving Kris Mayes and outside political organizations. The allegations claim Mayes received political benefits in exchange for official actions targeting political opponents.
Shady Operator
Late last year, a top official in Mayes’ State Government Division was arrested for “controlling and trafficking stolen property.” Mayes’ office had been warned by the City of Peoria nearly two years earlier about serious allegations against this official – including fraud, conversion, and breach of fiduciary duty – yet Mayes kept her in a position of authority leading up to her arrest.
Arizona has long been known for its rugged independence and spirit of doing the right thing. Unfortunately for our state and its proud history, that reputation is being shattered by the culture of corruption from Hobbs and Mayes. Democrats across the country – from Arizona to Minnesota – have proven themselves incapable of governing our states – the laboratories of democracy – as the people rightly expect and deserve. It will be up to the voters to course correct this November and usher in legislators and executives who can – and will – steward the peoples’ money as it was intended.
Warren Petersen is the President of the Arizona State Senate and represents Legislative District 14.
by Matthew Holloway | Sep 28, 2025 | Education, News
By Matthew Holloway |
Governor Katie Hobbs has sparked controversy by appointing James “Jimmy” McCain, son of the late Senator John McCain, to the Arizona Board of Regents.
The decision raised eyebrows due to McCain’s opposition to President Donald Trump’s policies, the Arizona GOP’s censure of the late senator, and James McCain’s role at Hensley Beverage Company, a key sponsor of Hobbs’ inaugural committee.
“Jimmy McCain is a veteran, a businessman, and native Arizonan who is passionate about connecting every Arizona community to the education they need to thrive,” Hobbs said in a statement about the McCain-Hensley family heir.
“His long track record of public service and knowledge of the unique challenges and opportunities of northern Arizona make him well-positioned to advocate for the students of the region,” she added. “With his deep Arizona roots and passion for serving the people of our state, I know he will be a tireless advocate for northern Arizona. I look forward to seeing Jimmy deliver for our students, universities and communities while serving on the Board of Regents.”
Absent from the Governor’s remarks were any references to the $10,000 donated to her inauguration fund from Hensley Beverage Company, as reported by the Arizona Republic in 2023.
“I am deeply honored that Governor Hobbs has entrusted me with the opportunity to serve on the Arizona Board of Regents,” said Jimmy McCain. “As the Regent representing northern Arizona, I am excited to help strengthen higher education across our state and ensure that students from every background, especially those in our Tribal and rural communities, have access to the educational tools they need to succeed. Arizona’s public universities are the economic engine of our state, and I look forward to working with my fellow Regents, President Cruz Rivera, President Crow, and President Garimella, to advance our collective mission.”
According to the Daily Courier, McCain, like his father before him, opposes President Donald Trump and the MAGA Republican movement, and departed the Republican Party in 2016 after Trump’s first electoral win. After registering as an independent for eight years, he changed parties and became a Democrat in 2024, stating that he would vote for then-Vice President Kamala Harris.
Senator McCain’s widow, Ambassador Cindy Hensley-McCain, also endorsed former President Joe Biden in 2020 but told reporters she remains a registered Republican. She also remains Chairwoman of Hensley Beverage Company.
A press aide for Hobbs, Liliana Soto, told the Courier that McCain’s party change did not contribute to the Governor’s decision to appoint him. “Jimmy McCain has a strong track record of leadership, collaboration, and service,” Soto told reporters. She added that Hobbs believes he is, “committed to keeping Arizona’s universities affordable and innovative.”
Hobbs’ first pick for the Board of Regents, Liz Archuleta, was not given a hearing by the Republican-led state Senate.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by AZ Free Enterprise Club | Jul 23, 2025 | Opinion
By the Arizona Free Enterprise Club |
15 months. That is how much time we have left until Arizona can elect a new governor, and it couldn’t come soon enough.
Since taking office in 2023, Katie Hobbs has been a complete disaster. The heights of her corruption have certainly been well documented. From her illegal use of public resources to solicit money for her inauguration, to an alleged pay-to-play scheme between Hobbs and an Arizona group home that donated to her inauguration, to shelling out $700,000 to a company owned by the brother of the now-former Office of Tourism Director to create a new state logo, Hobbs has proven that the people of Arizona are her lowest priority. And there are no signs that will change any time soon.
In the latest reveal of her efforts to turn her office into a jobs program for her political friends, it was discovered that Hobbs handed out nearly $600,000 in taxpayer money to a former Democrat politician and her assistant for two newly created jobs. These just add to the long line of other phony baloney jobs Hobbs has created so that her buddies can get paid six-figure salaries to sit around and do nothing on your dime. In fact, just last year, she added six new jobs in the newly created Office of Resiliency (whatever that is), four new employees in the Office of Tribal Relations, and three new in-house attorneys, to name a few. All total, Hobbs has increased executive employment costs by over 50%!
With all these new government jobs, you would think Arizona must be leading the way in the nation for job creation, but no. It’s just the opposite…
>>> CONTINUE READING >>>
by Matthew Holloway | Jun 20, 2025 | News
By Matthew Holloway |
Only weeks after refusing to comply with an Executive Order to reactivate the Cholla Power Plant in Northern Arizona, Arizona Public Service (APS) has filed documents with the Arizona Corporation Commission (ACC) requesting an increase in the state-regulated electrical utility’s revenue of $579.5 million. That equates to a jump in residential electrical rates of approximately 14.5%. The hike would represent a 30% increase in residential rates since 2023.
The utility is also seeking permission from the Commission to unilaterally adjust prices annually using “rate design schedules.” APS justified this request to the ACC in the 2,323-page application docket claiming, “The costs to ensure reliable service to customers have rapidly increased due to high rates of inflation, persistently high interest rates, and continued supply chain and trade policy volatility.”
The utility alleged that a “significant revenue deficiency … based on the 12-month period that ended on December 31, 2024 (Test Year), demonstrates that APS’s current rates do not recover sufficient revenue to ensure reliable service.”
Notably, APS and its parent company, Pinnacle West Capital Corp., did have enough revenue to give Governor Katie Hobbs $250,000 for her inauguration and even bankrolled her legal battle with Kari Lake to the tune of $100,000.
“The tremendous growth across APS’s service territory shows no sign of letting up, with the Company’s infrastructure and reliable energy supply providing the backbone of this historic expansion,” APS said. “And yet, with high rates of inflation, persistently high interest rates, and continued supply chain volatility, the costs to serve current APS customers (let alone prepare for growth) are substantially higher than when the test year concluded in the Company’s last rate case.”
Just one year ago, the ACC approved a rate increase for residential customers of approximately 8 percent. That was followed by significant turnover in the commission with Republican newcomers Rachel Walden and Rene Lopez joining incumbent Lea Márquez Peterson to defeat the Democrat nominees and lock down all five seats for the GOP.
In the upcoming 2026 election, Arizona Reps. David Marshall and Ralph Heap are challenging incumbent commissioners Chairman Kevin Thompson and Vice Chairman Nick Myers. During a Tuesday presser, Marshall and Heap accused the commissioners of excessive price hikes and blocking President Donald Trump’s energy agenda.
“We have some families now who have to make a decision. Do I buy less groceries so I can pay my power bills? Or just deal with it or go without power,” Marshall told reporters.
“The Corporation Commission may not always make the headlines,” he added. “But the decisions made there affect every one of us every single day.”
In a statement responding to the primary challenge from Reps. Marshall and Heap, Commissioners Thompson and Myers defended their record saying, “We’ve taken steps to ensure our utilities are planning responsibly and not chasing costly, agenda-driven energy mandates. That’s why we required APS to prove in its 2023 Integrated Resource Plan that it has enough reliable and dispatchable generation to replace retiring plants. And it’s why we initiated the termination of Kris Mayes’ Renewable Energy Standard, which was an outdated mandate that artificially inflated utility costs by forcing ratepayers to subsidize unreliable, high-cost sources like wind and solar.”
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Staff Reporter | May 17, 2025 | News
By Staff Reporter |
Governor Katie Hobbs has another secretive fund, this one used to cover legal expenses.
Hobbs has never disclosed the existence of this fund, which covered the costs of a lawsuit filed against her by former gubernatorial candidate Kari Lake. AZ Capitol Times uncovered and first reported on its existence after discovering a financial report from the parent company of the state’s electric utility giant, Arizona Public Service (APS), disclosing a gift of $100,000 in 2024 to cover Hobbs’ legal expenses.
State law enables Hobbs to maintain this secretive fund; it has for nearly a decade.
APS parent company, Pinnacle West Capital Corporation (PWCC), also gave to Hobbs’ other secretive fund for her inauguration.
Although Hobbs’ legal fund was discovered, the governor says she won’t be publicizing any other details about the donors or total amount collected.
Hobbs also attempted to keep her inaugural fund secret, but relented to public disclosure after receiving threats of litigation. Records revealed that Hobbs’ inaugural fund collected nearly $2 million, but the event cost less than $210,000. Government transparency watchdogs attempted to determine whether Hobbs’ inauguration team continued to collect donations in excess of a pre-event budget, to no avail.
PWCC’s singular donation of $250,000 to the fund covered the inauguration in its entirety — but Hobbs pocketed the excess of well over a million for her reelection bid next year. Other large donors to that fund issued $100,000 each: Blue Cross Blue Shield, the National Association of Realtors, and Sunshine Residential Homes.
That last major donor, Sunshine Residential Homes, received millions in contracts from the Arizona Department of Child Safety (DCS) after making around half a million in campaign donations to Hobbs and the Arizona Democratic Party — despite DCS denying pay increases to home operators and dropping 16 providers during the contract renewal process.
Michael Beyer, the newly named communications director for Hobbs’ reelection campaign, defended the legal fund and its secrecy in a statement to the AZ Capitol Times.
“Kari Lake baselessly challenged the results of a free and fair election she lost,” said Beyer. “We won eight times in court, and yet Lake fought the results all the way through November 2024 when she finally lost her last appeal to the Arizona Supreme Court.”
Beyer recently joined the Hobbs campaign following his stint as the communications director for Virginia Senator Tim Kaine’s re-election campaign. Beyer’s past communications work includes the campaign for Mississippi’s 2023 Democratic gubernatorial candidate Brandon Presley, the Ohio Democratic Party, New Hampshire Democratic Party, and the Democratic Governors Association.
Some question whether the funds are another example of alleged “pay-to-play” occurring within the governor’s office. Hobbs approved legislation permitting public power entities like APS to engage in securitization. APS wrote the legislation.
Hobbs issued a defense of her passage of the bill, saying it would lower energy costs and improve grid resiliency.
“By working with bipartisan legislators I put in safeguards to ensure everyday Arizonans, not utilities, will benefit from securitization. And I made sure this bill will provide a tool to grow our energy economy,” said Hobbs. “Because of this bill, Arizona families will save money and we will help create more jobs in a clean energy economy that, in just the last few years, has brought nearly $18 billion in investments to our state and created over 18,000 quality jobs.”
Hobbs also vetoed legislation from Senate President TJ Shope requiring companies seeking state contracts to list all donations given in the past five years to the governor.
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