The fallout continues from the Arizona Governor’s decision to withdraw her remaining agency nominees for Senate confirmation.
On Monday, Senate President Warren Petersen highlighted an email from the Arizona Department of Environmental Quality (ADEQ) regarding his chamber’s confirmation process. The communication to all ADEQ staff was from Karen Peters, who was previously nominated to serve as the Department’s Director.
Very disturbing to see that the governor and director of ADEQ blatantly and openly attempting to circumvent the law. Dark day for Arizona. pic.twitter.com/259gHWTJ8C
In her message, Peters shared that “Governor Hobbs is taking actions today to keep her chosen agency leaders in place, as the state Senate has not acted on many of her cabinet appointments. As of this morning, I am reassigned into an Executive Deputy Director position, not subject to Senate confirmation, and serve as the Cabinet Executive Officer (CEO) to lead the Arizona Department of Environmental Quality.”
Petersen erupted at the intercepted transmission, writing, “Very disturbing to see that the governor and director of ADEQ blatantly and openly attempting to circumvent the law. Dark day for Arizona.”
Arizona Treasurer Kimberly Yee also weighed in on the governor’s shocking action. During Tuesday’s State Board of Investment meeting, Yee revealed that she “did not recognize employees from the Arizona Department of Administration or the Arizona Department of Insurance and Financial Institutions as legally participating members due to the recent actions of the Governor.” The Republican Treasurer added, “Yesterday’s decision by the Governor to pull the nominations of these cabinet-level positions has created chaos and confusion that is contrary to the orderly administration of government business. The absence of lawfully appointed directors of these two agencies creates legal uncertainty and jeopardizes the proceedings of the State Board of Investment.”
Arizona Treasurer Kimberly Yee issued the following statement on today's State Board of Investment meeting. pic.twitter.com/SU0ByqcR4m
— Office of the Arizona State Treasurer (@AZTreasury) September 26, 2023
The Senate President agreed with Yee’s assessment of the situation at hand, stating, “Treasurer Yee is correct. The Governor has appointed 13 Fake Directors. They are illegitimate and should not be recognized as credible.”
Petersen also noted his chamber “approved 70 percent of her nominees” – a sign that the Senate was moving in good faith to complete its constitutional responsibilities.
Treasurer Yee is correct. The Governor has appointed 13 Fake Directors. They are illegitimate and should not be recognized as credible.
The Senate process was working to confirm nominees. We approved 70 percent of her nominees. But we are not a rubber stamp. 1of2. https://t.co/BSWzIX4fmj
However, Petersen warned that the Senate’s confirmation process was “not a rubber stamp” for nominees sent from the Governor’s Office. He asserted that “Vetting is imperative to protect AZs citizens. The founders set up a system of checks and balances for this purpose. Further there was no need to rush her new Fake Director appointments because all of her prior nominees could serve for 1 year without and prior to confirmation.”
Vetting is imperative to protect AZs citizens. The founders set up a system of checks and balances for this purpose.
Further there was no need to rush her new Fake Director appointments because all of her prior nominees could serve for 1 year without and prior to confirmation.
The final straw for the Hobbs’ administration appears to have taken place last week, when the Senate’s Committee on Director Nominations voted, along party lines, to recommend a ‘no’ vote on the executive appointment for the Director of the Arizona Department of Housing, Joan Serviss.
In a press release announcing the result of the committee’s vote, the Senate Republican Caucus shared that “during questioning of Serviss, troubling information came to light regarding a history of repeated and seemingly pervasive plagiarism while serving as Executive Director with the Arizona Housing Coalition. The Caucus added, “Over a period of about four and a half years, an alarming number of individual statements were documented as written by other groups, but presented by Ms. Serviss as her own original works,” and “under her leadership, both government entities and the public were misled, threatening the credibility of this organization.”
However, Senate Democrats were outraged by the committee’s rejection of Serviss. Two Senators, Lela Alston and Flavio Bravo, quickly issued a press release, condemning the action. Alston said, “I have sat in more legislative committees than I would like to admit, but I have never seen worse behavior than that which was displayed by Senator Hoffman today. Director Serviss is broadly supported by veterans, housing experts, community members, and those in the advocacy community for this role.” Bravo added, “The accusations Republicans chose to throw were not that of a legislative official who should easily be able to distinguish the difference between an advocacy letter and an academic paper…He (Hoffman) put his own personal disagreements with Governor Hobbs above the dire needs of Arizonans in urgent need of housing.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
Arizona investments continue to be in good hands under the oversight of Republican State Treasurer, Kimberly Yee.
On Tuesday, Treasurer Yee announced that the Local Government Investment Pool earned $24.49 million in July, and that the Permanent Land Endowment Trust Fund (PLETF) soared to a record high of $7.99 billion the same month.
Arizona Treasurer Kimberly Yee reported at the State Board of Investment meeting that the Local Government Investment Pool earned $24.49 million in July.
— Office of the Arizona State Treasurer (@AZTreasury) August 29, 2023
Yee unveiled the report at the August State Board of Investment meeting, which was open to the public via an online web service. According to a press release issued from her office, “the monthly meeting reports on Arizona’s investment activity, cash flow, future market conditions, and Arizona’s Education Savings Plan.”
The August 2023 report showed that the total assets under management were $5,886,428,849, and that earnings were up 241.51% year over year.
AZ Free News reached out to Treasurer Yee for comment, and the second-term official provided the following statements:
“I am the first Treasurer in Arizona’s history to meet regularly with local government leaders throughout Arizona’s fifteen counties to go over their record performing investments with our office. That’s why we’ve seen a 74% increase in local government assets under management during my administration. My office distributed a record-high of over $212.6 million to Local Government Investment Pool participants in FY 2023. This historic number of earnings surpasses the combined earnings of the last five fiscal years. Since I took office in January 2019, I have distributed record earnings of over $3 billion to local governments, state agencies and K-12 education, among other land endowment beneficiaries. This outstanding performance is fantastic news for Arizona taxpayers as our investment team continues to outperform benchmarks and receive record setting earnings, resulting in less direct local taxes for Arizonans.”
In the Arizona Treasury’s Education Endowment Report, not only did the PLETF hit a record high market value, but $424 million was to be distributed to K-12 education in Fiscal Year 2024. The Treasurer’s Office also revealed that the PLETF 10-year annualized total return approached 8%, which outperformed the average U.S. College and University endowments nine years in a row. According to the report, PLETF “is an endowment fund that the Arizona Treasurer deposits the land sales of Arizona into and invests the proceeds for education and other state beneficiaries, such as AZ K-12 education, AZ universities, AZ School for Deaf & Blind, AZ Pioneers’ Home, AZ State Hospital, and state prisons.”
Under the leadership of Arizona Treasurer Kimberly Yee, the Arizona Permanent Land Endowment Trust Fund hit a record high of $7.99 billion in July 2023! This means more money for Arizona K-12 education and the other endowment beneficiaries.
— Office of the Arizona State Treasurer (@AZTreasury) August 30, 2023
The cumulative distributions for the PLETF over its history (since the 1990s) has been just under $4 billion ($3,823,070,913). When Yee took office in 2019, the market value of the PLETF appeared to be hovering around $6 billion.
Treasurer Yee’s Office also highlighted that “since taking office in January 2019, Arizona Treasurer Kimberly Yee has distributed record earnings of over $3 billion. This breaks down to $1.245 billion for the LGIP and State Agencies and $1.758 billion to beneficiaries of the PLETF as of June 30, 2023.
Since taking office in January 2019, Arizona Treasurer Kimberly Yee has distributed record earnings of over $3 billion. This breaks down to $1.245 billion for the LGIP and State Agencies and $1.758 billion to beneficiaries of the PLETF as of June 30, 2023. | @AZTreasurerYeepic.twitter.com/1iFX6aiqH8
— Office of the Arizona State Treasurer (@AZTreasury) August 29, 2023
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
A fight for the future of some federal grant dollars for Arizonans appears to be brewing.
Last week, John Thorpe with the Goldwater Institute sent a letter to Arizona Treasurer Kimberly Yee, expressing the organization’s “concern about Governor Hobbs’ purported cancellation of ESA-related grants that would enable children to attend all-day kindergarten” and urging Yee’s office “to go forward with the program as a legal obligation and for the sake of the parents.”
The Goldwater Institute’s letter references Hobbs’ action in May, which determined that “a $50 million grant made to the Treasurer in the final hours of the Ducey Administration is illegal and invalid.” Hobbs said at the time, “Illegally giving $50 million to private schools while failing to properly invest in public education is just one egregious example of the previous administration’s blatant disregard for public school students.”
After receiving the governor’s notice earlier this year, Treasurer Yee released a statement, writing: “It is clear Governor Hobbs does not care about what is best for Arizona kids or respect the rights of parents to determine the best environment to educate their child. Instead, she is using these children as pawns in a desperate and transparent attempt to win back support from union bosses and her ultra-progressive base. Educational choice is the civil rights issue of our time, and unfortunately, Governor Hobbs thinks she knows better than parents. I fundamentally disagree, and so do Arizona families.”
Governor Hobbs has just denied thousands of Arizona kids access to kindergarten through this politically driven and belligerent decision.
— Arizona Treasurer Kimberly Yee (@AZTreasurerYee) May 25, 2023
In that statement, Yee also said that her legal team was “currently reviewing the lawfulness of the governor’s move and determining next steps.”
The Goldwater Institute’s June 14th letter to Treasurer Yee states that “on January 1, 2023, the Governor’s Office entered an Interagency Service Agreement with the Treasurer’s Office to provide up to $50,000,000 in federal grant money from the American Rescue Plan (ARPA), via the ESA program, to children in kindergarten starting with the 2023 academic year…In exchange for your office’s commitment to administer and report on the grant program, the Governor made a contractual commitment to provide the funds and to ‘work with’ your office ‘to establish a cadence whereby [the Governor] will transfer funding to [the Treasurer] to then disburse to grant program recipients.’ The Agreement was, and is, a legally binding contract.”
Thorpe’s letter also asserts that “nothing in the Agreement or in state law permits unilateral termination by the Governor,” calling Hobbs’ prior justifications “groundless,” adding that “the Governor has no right to simply cancel an agreement based on unfounded speculation that the agreement violates the law.”
The first-year Arizona governor had touted that by taking this action, her office had “adverted a violation of federal law and the State Constitution.”
The attorney for the Goldwater Institute’s Scharf-Norton Center for Constitutional Litigation also communicated that “we find it troubling that Governor Hobbs is attempting this rollback of the ESA program after a long history of campaigning against, and promising to end, the Legislature’s recent expansion of the Arizona Empowerment Scholarship program.” He continued, “Having already failed in her bid to defund the ESA program through the budget process earlier this year, it appears Governor Hobbs is attempting to cancel the all-day kindergarten grants, not in order to comply with state or federal law (as described above, the program is entirely lawful), but as part of a transparent effort to harm and undermine the ESA program wherever possible.”
In a supplemental post, Thorpe added, “It’s simple: the governor does not have a right to lawlessly renege on promises made to Arizona families. Goldwater will never stop fighting to empower parents, expand choices in education, and to hold government officials accountable – in Arizona and throughout the country.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
The U.S. Supreme Court saved one of the biggest opinions of the term for its second-to-last day, and its decision triggered reactions on both sides of the aisle in Arizona.
When the nation’s high court handed down its highly anticipated ruling in Students for Fair Admissions v. President and Fellows of Harvard College, it made a significant correction in the standards for admissions systems used by public universities around the United States. The Court held that race-based standards in Harvard’s and UNC’s admissions programs “violate the Equal Protection Clause of the Fourteenth Amendment.”
Writing for the majority coalition of the Court, Chief Justice John Roberts stated, “…the student must be treated based on his or her experiences as an individual – not on the basis of race. Many universities have for too long done just the opposite. And in doing so, they have concluded, wrongly, that the touchstone of an individual’s identity is not challenges bested, skills built, or lessons learned but the color of their skin. Our constitutional history does not tolerate that choice.”
The historic decision by the Supreme Court, drew reactions from Arizona’s politicians on both side of the aisle.
In response to an inquiry from AZ Free News, Senate President Warren Petersen replied, “This is a great decision for the fight against discrimination. The highest court in the land agreed with Martin Luther King Jr. in that you should not be judged by the color of your skin. An individual should be considered for college admissions based on academics, experience, qualifications and character—not by race. I’m thrilled this ruling will bring some sanity back to institutions of higher learning.”
Senate President Pro Tempore T.J. Shope told AZ Free News, “SCOTUS made the right decision today. As the proud son of a Mexican American mother and a white father of German ancestry, our family always knew that we should be judged on our character and not our color. We’re all Americans and we all share a responsibility in keeping this country free of racism & bigotry.”
Sadly, this isn’t a parody account. Just a Biden Field Organizer telling us how she feels… https://t.co/SIAnwArZeR
Democrats, however, took issue with the Court’s ruling. Senate Democratic Leader Mitzi Epstein released a statement after the opinion’s revelation, saying, “Affirmative Action has never been about jumping to the front of the line without any merit. It has been about providing a ladder of equity to help those who have faced adversity in education, the workplace, housing, and every aspect of American life. Affirmative Action has been about providing opportunities for students who are Black and Brown to attend colleges, and for college students to live, love and learn among diverse peers. The same people celebrating this bad Court decision have been actively trying to whitewash history and walk America back to the book-burning past. SCOTUS did not rule against legacy admissions, employee and family recommendations, and grandiose donor admissions. The Court ruled to allow favoritism, but not favoritism for those who have faced racist obstacles. The Court ruled for the favored to get more favors, just as Republican politicians have pushed ways for the rich to get richer, and for the powerful to get more power.”
“The Court ruled for the favored to get more favors, just as Republican politicians have pushed ways for the rich to get richer, and for the powerful to get more power." -Senate Democratic Leader @MitziEpsteinpic.twitter.com/C985mrcA0O
— Arizona Senate Democrats (@AZSenateDems) June 30, 2023
Democrat Representative Analise Ortiz called the Court’s opinion “devastating,” adding that “this ruling upholds white supremacy in higher education and the workforce. Simultaneously, the efforts to privatize K-12 education and drain public schools of funding achieve the same end. We must fight back to ensure racial equity in education.”
Devastating. This ruling upholds white supremacy in higher education and the workforce. Simultaneously, the efforts to privatize K-12 education and drain public schools of funding achieve the same end. We must fight back to ensure racial equity in education. https://t.co/r5iKn6WTB5
— Rep. Analise Ortiz (@RepAnaliseOrtiz) June 29, 2023
Kimberly Yee, the State’s Republican Treasurer, also weighed in on the news of the day, writing, “I applaud the U.S. Supreme Court’s decision to keep merit, character and academic achievement the center point of college admissions. The American Dream is attained by putting in the honest, hard work. No one should be able to cut ahead of the line in the name of affirmative action, based on the color of their skin. This decision upholds the core Constitutional principle that no institution in America is allowed to discriminate based on race.”
Today I issued the following statement upon the U.S. Supreme Court's historic decision to overturn affirmative action in the college admissions process. pic.twitter.com/ZY3QfNwjMk
Maricopa County’s long-awaited drop of 71,000 ballots on Monday night locked in three key races for Democrats: governor, secretary of state, and senator. The vote results remain unofficial, with two statewide races remaining close.
Republicans easily won the state treasurer’s race with incumbent Kimberly Yee at the helm, leading Democratic challenger Martín Quezada nearly 56 to 44 points.
THANK YOU, ARIZONA!
I am so honored that you have elected me to serve another four years as your State Treasurer. I pledge to continue to live up to the trust Arizonans have placed in me to responsibly and prudently manage our state’s finances. 1/ pic.twitter.com/2TK7890ZxA
Quezada retweeted political commentary indicating that the Democratic Party didn’t offer him enough support, financial or otherwise.
No. I voted for Martín. He’s a great guy. But, the Democratic Party (they seldom run someone for Treasurer) didn’t rally around Quezada like they did their other statewide candidates. Fundraising was difficult. Too many Dems believe that the office is inconsequential. It’s not.
Democrat Katie Hobbs will be Arizona’s 24th governor, becoming the fifth woman to do so. Hobbs pulled in 50 percent of the vote to Republican opponent Kari Lake’s 49 percent. Hobbs announced that she won on Monday, but Lake didn’t concede.
Rather, Lake questioned why Maricopa County’s top election officials, Recorder Stephen Richer and Board of Supervisors Chairman Bill Gates, launched a political action committee (PAC) to defeat certain Republicans.
Shouldn't Election Officials be impartial? The guys running the Election have made it their mission to defeat America First Republicans. Unbelievable. https://t.co/Lz12h9VRX1
Democrat Adrian Fontes prevailed over Republican Mark Finchem in the Secretary of State race, bringing in 52 percent over Finchem’s 47 percent. Fontes declared victory on Monday morning, long before the ballot drop that night.
This morning I proudly declared victory in this election for the office of Secretary of State. Thank you, Arizona! pic.twitter.com/eWbmADT1La
Finchem refused to believe the results of Monday’s ballot counts. He reminded voters that the polls didn’t reflect the results at all, challenging the ballots’ validity.
Polling said only 7% of Fontes supporters were going to vote on election day. https://t.co/FrvoHVGxTV
— Mark Finchem #JustFollowTheLaw VoteFinchem.com (@RealMarkFinchem) November 15, 2022
Several races remained too close to call. In the race for superintendent of public instruction, Republican Tom Horne leads Democrat incumbent Kathy Hoffman by .02 percent — just over 6,400 votes. In the attorney general’s race, Democrat Kris Mayes also leads Republican Abraham Hamadeh by .02 percent: nearly 3,200 votes.
Greenlee and La Paz counties had 100 percent of their votes completed. Yavapai and Gila counties had over 99 percent of their votes completed as of Monday night. Maricopa County had nearly 99 percent of votes completed. Yuma and Pima counties had 98 percent of votes completed. Coconino County had 97 percent of votes completed. Pinal and Navajo counties had 94 percent of votes completed. Cochise County had nearly 91 percent of votes completed. At the rear, Apache County had 74 percent of votes completed.
