by Matthew Holloway | May 27, 2025 | News
By Matthew Holloway |
An investigation by Republican Reps. David Marshall, Walt Blackman, and Quang Nguyen found that the City of Phoenix has distributed over $28.5 million of taxpayer funding to more than 100 private organizations with a shocking lack of oversight. Now, the Goldwater Institute is asking Arizona Attorney General Kris Mayes to intervene and stop what it termed an “unlawful spending spree.”
Citing the legislative findings, the Goldwater Institute alleges that “Organizations like the Phoenix Film Foundation, Phoenix Pride Inc, Mexican Baseball Fiesta LLC, the Arizona Science Center’s Galaxy Gala, and many others received subsidies—sometimes simultaneously by multiple departments—under questionable labels like ‘Sponsorships,’ ‘Grants and Subsidies,’ ‘Emerg[ency] Assist[ance],’ or ‘Miscellaneous.’ The city has no lawful authority to spend public money in this way.”
Parker Jackson, a staff attorney at the Goldwater Institute, said in a statement, “This effectively turns large portions of the city’s budget into a patchwork of slush funds that special interests can access in the sole discretion of a single city employee. Amazingly, the city ‘does not track donations by nonprofit status,’ so it does not know exactly how much taxpayer money has been funneled out through this opaque process.”
The reported “Sponsorships,” “Grants and Subsidies,” “Emerg[ency] Assist[ance],” or “Miscellaneous” donations run afoul of the Arizona State Constitution’s Gift Clause according to Jackson in a letter to the Attorney General co-signed by Jon Riches, the Goldwater’s Vice President for Litigation.
Riches wrote, “Most—if not all—of these expenditures appear to violate the Arizona Constitution’s Gift Clause, which strictly prohibits use of public funds to benefit private, special interests. Not only is it doubtful that these allocations serve a legitimate public purpose, but there also appears to be no direct or measurable consideration received in return for this use of public resources.”
The Arizona Constitution under Article 9 Section 7 states, “Neither the state, nor any county, city, town, municipality, or other subdivision of the state shall ever give or loan its credit in the aid of, or make any donation or grant, by subsidy or otherwise, to any individual, association, or corporation, or become a subscriber to, or a shareholder in, any company or corporation, or become a joint owner with any person, company, or corporation, except as to such ownerships as may accrue to the state by operation or provision of law or as authorized by law solely for investment of the monies in the various funds of the state.”
The Goldwater attorneys have called on Mayes to “[e]njoin the illegal payment of public monies” and to “[r]ecover illegally paid public monies,” under A.R.S. § 41-194.01 and A.R.S. § 35-212 respectively.
Jackson wrote in a Goldwater Institute press release that the finding by the Arizona legislature may seem familiar to keen observers: “If treating taxpayers as financiers for private entities—even controversial and ideological ones—sounds familiar, that’s because it mirrors what has been exposed throughout the federal government this year. For example, the U.S. Agency for International Development (USAID) was aptly described as ‘a slush fund for leftist priorities’ after the White House exposed decades of waste and abuse in that agency.”
In a video posted to X, Jackson said, “At the end of the day, public dollars should be used for public purposes… not to enrich special interests at a bureaucrat’s whim.”
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 Matthew Holloway | May 6, 2025 | News
By Matthew Holloway |
The Goldwater Institute recently sent an email that its lawsuit announced in January against the Hobbs administration is moving forward.
In the email, Goldwater highlighted the potential impact of the Arizona Department of Water Resources (ADWR) controversial new rule imposing the requirement of a 100-year groundwater supply across wide swaths of the state.
Goldwater’s Vice President for Litigation Jon Riches wrote, “This government overreach sets a troubling precedent for other bureaucratic agencies to bypass the authority of the legislature. Due to ADWR disregarding the legislative process and the risks posed by the water rule, the Goldwater Institute is suing Governor Hobbs’ administration.”
Goldwater is challenging the Arizona Department of Water Resources’ (ADWR) controversial new rule imposing the requirement of a 100-year groundwater supply across wide swaths of the state. The troubling regulation was detailed earlier this year in an op-ed from Goldwater’s Vice President for Litigation Jon Riches and in a report by AZ Free News.
Riches explained that Hobbs’ appointed Director of ADWR, Tom Buschatzke, is “working outside Arizona law,” by implementing the new “unmet demand” rule, unilaterally without legislative approval or following the statutory rule-making process.
He wrote, “Despite Buschatzke’s apparent desire to act as a mini czar with unilateral power to determine this state’s water policy, his authority — like all government power — is constrained by Arizona law. And that law is crystal clear: When regulatory agencies like ADWR attempt to impose sweeping policies — such as halting all new home construction across large parts of the Valley — they must do so through formal rulemaking, allowing for public input. Instead, Buschatzke sidestepped this requirement and imposed his homebuilding moratorium with the stroke of a pen. The Goldwater Institute, where I work, is now suing the agency to halt the illegal rule.”
In the email, Riches warned, “If someone wanted to build a house, they would be blocked from doing so if another part of the designated region, miles and miles away, did not meet the criteria of this water rule.”
The email also outlined three direct impacts that Arizona taxpayers could expect to feel: “Increased housing costs, prevention of homebuilding, [and] a dangerous precedent for government overreach.”
Riches added, “This is one of the most critical lawsuits by the Goldwater Institute in our history. We have been successful in challenging unconstitutional laws in the past, and we are ready to fight this one.”
The complaint in Home Builders Association of Central Arizona v. Arizona Department of Water Resources can be found online here. The case is currently in the Maricopa County Superior Court pending a response from the ADWR.
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 Matthew Holloway | Apr 8, 2025 | Education, News
By Matthew Holloway |
In October 2023, the U.S. Department of Education (DOE), under the Biden-Harris Administration, imposed a staggering $37 million fine against Grand Canyon University (GCU) in Phoenix, the largest privately owned Christian University in the nation. The fine came without revealing any serious complaint against the school. In February 2024, the Goldwater Institute announced that it advanced a lawsuit to determine why such a massive fine was levied. Now, a hearing has been scheduled in the case for April 18th.
Acoording to the Goldwater Institute, the DOE claimed that GCU “violated federal disclosure rules regarding continuing education courses for PhD students.” GCU leaders deny this outright. Further, in a press release regarding the fine, the DOE declined to include any complaints from students or members of the public to support its regulatory action.
When a federal judge in the U.S. District Court hears arguments in Goldwater Institute v. U.S. Department of Education, Goldwater hopes to compel the federal agency to disclose the alleged violation(s), which it believes are particularly suspicious. According to Goldwater, a public statement from Biden’s Secretary of Education Miguel Cardona vowed to “shut down” GCU.
Adding doubt to the DOE’s allegations, as Goldwater notes, GCU reportedly hasn’t raised tuition in over 15 years. The manner in which the fine was announced was also suspect with Goldwater noting, “The Department also announced its unprecedented fine with a widely reported press release that was heavy on rhetoric and bereft of any serious complaints from students or the public. It also appears that the fine was assessed in conjunction with suspicious coordination among various federal agencies.”
According to Goldwater, efforts through a Freedom of Information Act (FOIA) request to determine the motivation behind the fine have gone unanswered, leading up to the complaint.
“The request seeks emails between key individuals of the Department and other federal agencies that discuss the Department’s fine against GCU. The records may help inform the public about this extraordinary fine, as well as coordination between various federal agencies in what appears to be the intentionally targeting of a successful university based on extraordinarily thin allegations. However, the Department has refused to produce the records requested and has failed to otherwise comply with the FOIA.”
As reported by AZ Free News in February 2024, Goldwater staff attorney Stacy Skankey explained, “With its motto of ‘private, Christian, affordable’ and its track record of graduating students into high-demand and high-paying jobs, GCU is a success story by any metric. And it stands apart from universities across the country that are facing declining enrollment, that are indoctrinating students with radical politics, and that are under attack for failing to defend the First Amendment.”
In an op-ed for the Washington Times in December, Jon Riches, Goldwater Institute Vice President for Litigation, wrote, “As the Trump administration prepares to tackle an ambitious education agenda, ending the shameful attack on GCU should be a top priority. This would not only correct the injustice done to GCU but also make clear the broader principle that higher education should be a domain of innovation and student achievement — not a fiefdom for ideological conformity and bureaucratic rule.”
The initial action was brought by the Goldwater Institute during the Biden Administration and saw little to no response from former Secretary of Education Miguel Cardona. Though confirmed by neither party, the hearing had initially been delay and could be reflective of the whirlwind of changes at the DOE under Trump Administration.
The upcoming hearing could present a departure from the DOE’s previous position on the GCU fine, or at minimum provide transparency that was lacking under the previous administration.
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 Matthew Holloway | Jan 25, 2025 | News
By Matthew Holloway |
Governor Katie Hobbs is now facing a serious legal challenge from the Goldwater Institute, acting on behalf of the Home Builders Association of Central Arizona, to put a stop to what Goldwater described as “one of the most significant bureaucratic overreaches in Arizona’s history.”
On Wednesday, Goldwater announced the lawsuit against Arizona’s Democrat Governor stating that Hobbs is “taking illegal actions” that would worsen the state’s ongoing housing crisis by imposing a certification requirement in parts of Maricopa County that, in addition to showing a 100-year groundwater supply, must also meet the dubious standard of “unmet demand.”
Writing for Goldwater, Stacy Skankey explained, “Although the phrase ‘unmet demand’ does not exist in Arizona law, this new rule now requires homebuilders to show a 100-year groundwater supply across the entire water management area (a specially designated area with a reliance on groundwater) rather than at the site of the proposed development. In other words, if a groundwater shortage is projected anywhere within a management area, the Department of Water Resources now claims that there is insufficient groundwater elsewhere in the Valley.”
As reported by AZ Free News in December, Goldwater penned a letter to the Arizona Department of Water Resources (ADWR) urging the agency under Hobbs to reconsider its “AMA Wide Unmet Demand Rule,” noting that the new rule was in violation of the law having been imposed without legislative approval or via the required rulemaking process.
According to ADWR, “Unmet demand occurs when the model cannot simulate pumping of all demands included, thereby creating a pumping shortfall or deficit. This pumping shortfall or deficit occurs when there is insufficient saturated aquifer to satisfy the pumping demand (i.e., the depth-to-water level reaches bedrock) or when the depth to water exceeds 1,100 feet after 100 years of simulated pumping.”
Essentially, unmet demand occurs when the state’s modeling is insufficient to predict demand. In other words, the basis for shutting down Arizona housing development is that the Hobbs administration’s simulation doesn’t work.
As noted in an op-ed for the AZ Capitol Times by CEO of the Home Builders Association of Central Arizona Jackson Moll and Goldwater Institute Vice President for Litigation Jon Riches, the Phoenix Active Management Area (AMA) Groundwater Model being used by the Hobbs administration, coupled with the ‘unmet demand’ standard, moves the goalposts on developers who have mitigated impact on the state’s water needs for nearly 30 years by replenishing pumped groundwater back into the water table.
Riches said in a statement, “Decisions on vital statewide concerns like the availability of affordable housing and the responsible stewardship of our natural resources should be made through a transparent, democratic process—not imposed by executive fiat.”
Moll added, “Gov. Hobbs’ deeply inaccurate and flawed claim that Arizona is running out of groundwater is having devastating effects on housing affordability in the state, which already ranks among the worst in the country.”
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 Matthew Holloway | Dec 20, 2024 | News
By Matthew Holloway |
According to a recent letter from the Goldwater Institute, Governor Katie Hobbs’ administration has imposed a regime of regulation that has ground the development of new home construction in the fast-growing areas of Maricopa County to a halt. Now, the organization is challenging the validity of the newly established rules.
A press release this week from Goldwater stated that the action conducted by the Arizona Department of Water Resources (ADWR), which lacks the approval of the Arizona legislature or a formal regulatory approval process, is “driving up housing costs for all Arizonans and threatens to stifle economic growth in our state.”
Goldwater went on to characterize the ADWR’s move as “one of the most significant bureaucratic overreaches in Arizona’s history.” In its letter to the agency, it urged leaders to reverse course.
Jon Riches, Goldwater’s Vice President for Litigation, explained in his letter:
“ADWR has imposed two AMA-Wide rules that have prevented HBACA (Home Builders Association of Central Arizona) members from obtaining Certificates of Assured Water Supply. The first of these invalid rules provides that, if groundwater modeling predicts that a well may not be able to fully satisfy projected demand in any location within the Phoenix AMA Model domain within the next 100 years, then there is no groundwater available throughout the entire model domain (‘AMAWide Unmet Demand Rule’). The second invalid rule provides that if modeling predicts that depth-to-water will exceed 1,000 feet in any location within the Phoenix AMA in the next 100 years, then there is no physical availability of water anywhere within the Phoenix AMA model domain (‘AMA-Wide Depth-to-Water Rule’).”
Goldwater noted that the AMA-Wide Unmet Demand Rule doesn’t exist under Arizona law and was not adopted through the legal rulemaking process. It argued that under previous rulings in Arizona courts, the policies are “rules” and are legally subject to Administrative Procedure Act’s (“APA”) rulemaking process. Specifically, it cites “an agency policy as a rule subject to the Administrative Procedures Act’s rulemaking process as one that ‘is generally applicable, and … implements, interprets or prescribes law or policy, or describes the procedure or practice requirements of an agency.’”
Furthermore, the rule was reportedly created under what Goldwater refers to as a “flawed concept,” the eponymous “unmet demand,” which establishes that if a groundwater shortage is projected by models at any location within a given management area, then zero groundwater across that area will be considered available for any use.
“The model further compounds this issue by arbitrarily placing wells throughout the management area that do not move over the course of 100 years, far in excess of the life expectancy of most wells,” Goldwater writes.
”If water in a hypothetical well is projected to dip below a certain depth in the East Valley, the agency declares a water shortage for developments in entirely unrelated areas like the West Valley.”
In the release, the Goldwater Institute expressed concern that the Hobbs administration took this action unilaterally, effectively defying both the legislative and judicial branches of the Arizona government in what amounts to a massive overreach of her executive authority.
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.
