June has been off to a brutal start for Arizona Governor Katie Hobbs. She kicked off the month by breaking her own hiring freeze to bring in a new press secretary. Then, a few days later, a Maricopa County Superior Court judge ruled that Hobbs violated the law when she sidestepped the Senate’s confirmation process for agency directors. And to top it all off, an eye-opening report was released uncovering an alleged pay-to-play scheme between Hobbs and an Arizona group home.
This shouldn’t come as much of a surprise. After all, this is the same Katie Hobbs who broke the law to take credit for the Republican tax rebate. And it’s the same Katie Hobbs who required the nonprofit behind her $30 million medical debt relief program to give her credit. But this latest scandal shows that Hobbs’ corruption has reached a new level.
According to the report, Sunshine Residential Homes has donated approximately $400,000 toward the Arizona Democratic Party, Hobbs’ gubernatorial campaign, and her inaugural fund. And what did the group home receive in return? A nearly 60 percent rate increase! And this was at a time when the Arizona Department of Child Safety (DCS) cut loose 16 providers, and no other standard group home provider received a rate increase.
That’s convenient.
Sunshine Residential Homes could potentially receive millions of dollars more at the taxpayers’ expense from their investment (sorry…donation). And that must have their CEO—who also happened to serve on Hobbs’ inaugural committee—excited.
Hmmm…Hobbs’ inauguration fund. Do you remember that?
This entire saga began when Hobbs set up a shady inaugural slush fund to provide donors with a conduit to buy political favor from her administration…
An Arizona Republican legislator has renewed his efforts to hold the state’s Democrat chief executive accountable to the rule of law.
On Wednesday, Representative David Livingston filed a complaint and request for investigation with Arizona Attorney General Kris Mayes, regarding Governor Katie Hobbs’ use of state resources to influence elections pursuant to state statutes. This action from Livingston follows an earlier attempt from the legislator to obtain a legal opinion on “whether Arizona law allows a Governor-Elect to fundraise for political entities that make expenditures to influence elections through a state website promoting inaugural events.” In this latest effort, Representative Livingston revealed that Attorney General Mayes had “declined to provide a legal opinion, stating there were factual questions that made the issue inappropriate for a legal opinion.”
🚨FOR IMMEDIATE RELEASE🚨 State Representative David @Livingston4AZ Files Complaint with Attorney General Mayes Requesting Investigation of Governor Hobbs’ Use of State Resources to Influence Elections.
— Arizona House Republicans (@AZHouseGOP) June 14, 2023
Livingston released the following statement in conjunction with his announcement: “State law prohibits using public resources, including websites, to influence elections. As the Attorney General has already acknowledged, there are unanswered factual questions here that warrant an immediate and thorough investigation. If Governor Hobbs had simply transferred the leftover funds to the state protocol account like former Governors have done, it would not be necessary to file my complaint. But the Governor’s unprecedented actions and refusal to provide information to me about where the funds went, who controls the funds, and how the funds will be spent left me with no choice. As the state’s chief legal officer charged with investigating potential violations of Title 16, the Attorney General must scrutinize these transactions and seek judicial relief if necessary to remedy past violations and prevent future violations of state law.”
The state lawmaker argues that the Arizona Attorney General’s Office “is empowered to investigate potential violations of Title 16,” pointing out that “Mayes invoked this authority earlier this year when she filed an unsuccessful lawsuit against Cochise County, citing concerns that without taking legal action, the Cochise County Board of Supervisors might hide actions that should be done publicly in compliance with Arizona’s open meeting law.”
This issue rose to importance earlier this year as Arizona lawmakers received murky and incomplete information about Hobbs’ inaugural fund, which totaled more than $1.5 million in the lead-up to her inauguration at the State Capitol on January 5. After multiple weeks of questions, Hobbs’ campaign manager released the donor list, showing 120 contributors to the fund.
Even with the uncovered donor list, lawmakers wanted more transparency from Hobbs, but they weren’t finding the level of cooperation they sought from her Office. Reports showed that the inauguration cost $207,000, which was a fraction of the funds received from the Hobbs’ Inaugural Fund. With knowledge of how much was raised and spent from the fund, Senate President Warren Petersen and House Speaker Ben Toma sent a letter to the Governor on January 26, asking her to “commit the balance of her $1.3 million inaugural fund proceeds to the state, as past governors have, for the sake of transparency & accountability to the people of Arizona.”
The legislative leaders wrote that “Given….the Inaugural Fund’s own descriptive title, Arizonans would have reasonably anticipated that any excess funds would be used for state interests. In any event, given the public resources that were utilized to solicit funds for the Inaugural Fund and to host the inauguration, it would be inappropriate to utilize any monies in the Inaugural Fund to influence an election.”
The governor’s actions in this matter prompted the introduction of SB 1299, sponsored by Senator Wendy Rogers, which dealt with the governor reporting inauguration expenses. The bill required “the Governor’s Office to publish on its website, within 15 days after the inauguration ceremony, information detailing each organization that organized, supported or funded the ceremony.” The proposal was passed out of both legislative chambers with broad bipartisan support and signed into law by Hobbs.
Representative Livingston’s communication to Attorney General Mayes references this legislation, stating that SB 1299 “is no impediment to your investigation. Because SB 1299 requires all inaugural donations to be deposited directly into the state protocol account, it prohibits future Governors and Governors-Elect from unlawfully using state resources to engage in political fundraising. However, SB 1299 does not have retroactive application and does not remedy past violations of A.R.S. 16-192.”
The legislator ends his referral letter with an exhortation for the state’s top cop to take his complaint seriously, writing, “No one is above the law, including Governor Hobbs.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
Last week, the bipartisan Arizona Senate Government Committee accomplished something that will be a rare feat under the divided government between the State Legislature and the Governor’s Office: a unanimous 8-0 vote.
The panel, chaired by Senator Jake Hoffman, met on February 19, to consider one of Senator Wendy Rogers’ bills, SB 1299, which deals with the governor reporting inauguration expenses. According to the Arizona Senate’s purpose for the bill, SB 1299 “requires the Governor’s office to publish on its website, within 15 days after the inauguration ceremony, information detailing each organization that organized, supported or funded the ceremony.”
This issue rose to importance earlier this year as Arizona lawmakers received murky and incomplete information about Hobbs’ inaugural fund, which totaled more than $1.5 million in the lead-up to her inauguration at the State Capitol on January 5. After multiple weeks of questions, Hobbs’ campaign manager released the donor list, showing 120 contributors to the fund. Arizona Public Services (APS) gave $250,000, Blue Cross Blue Shield sent $100,000 – as did both the Realtors Issues Mobilization Committee and Sunshine Residential Homes.
But even with the uncovered donor list, lawmakers still wanted more transparency from Hobbs – and so far, they haven’t received full cooperation from Arizona’s new chief executive. Reports showed that the inauguration cost $207,000, which was a fraction of the funds received from the Hobbs Inaugural Fund. With knowledge of how much was raised and spent from the fund, Senate President Warren Petersen and House Speaker Ben Toma sent a letter to the Governor on January 26, asking her to “commit the balance of her $1.3 million inaugural fund proceeds to the state, as past governors have, for the sake of transparency & accountability to the people of Arizona.”
The legislative leaders wrote that “Given….the Inaugural Fund’s own descriptive title, Arizonans would have reasonably anticipated that any excess funds would be used for state interests. In any event, given the public resources that were utilized to solicit funds for the Inaugural Fund and to host the inauguration, it would be inappropriate to utilize any monies in the Inaugural Fund to influence an election.”
More than two weeks after the receipt of the Petersen-Toma letter, House Appropriations Committee Chairman David Livingston fired off his own letters to Governor Katie Hobbs and her campaign manager, “asking for a complete accounting of the funds, as well as any documents and other records associated with their solicitation.” Representative Livingston’s press release stated that the Governor has so far refused to follow in her predecessors’ footsteps and transfer the leftover money in the Inaugural Fund to the state’s Protocol Fund, as the Petersen-Toma letter broached – nor, as Livingston added, has she responded to their letter. Livingston’s letter came just before SB 1299 was considered before – and passed – by the Senate Government Committee.
SB1299, which would require more transparency for inauguration funds, passed by a unanimous vote today of 8-0 in the Senate Government Committee. I'm looking forward to reviewing the information I requested from Governor Hobbs and her campaign manager relevant to this bill. https://t.co/epjxxlPMQV
Senator Rogers’ legislation would require the Governor’s office to post the name of each committee or entity or entity that is organizing, supporting, or funding the inauguration; the name and address of the chair and treasurer of the organization; the name and address of an individual that donates anything of value to the organization; the name and address of any corporation or business entity that donates anything of value to the organization; and an itemized list of the amount and type of goods and services purchased by the organization.
Democrat Senator Juan Mendez voted to approve SB 1299 in the Government Committee, but wanted the public to know that he didn’t want his “yes vote to legitimize the irrelevant discussion that we all just had to sit through,” adding his wish that “the bills we focused on were bills that would actually address real Arizona problems and weren’t clearly a waste of public resources for the use of political theater to fundraise off of.”
Chairman Hoffman had the last word on the bill, saying that “we want to prevent state elected officials from breaking the law by misusing public funds to influence the outcome of elections.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
