by Matthew Holloway | Apr 7, 2025 | News
By Matthew Holloway |
In an exclusive interview with AZ Free News, Speaker of the Arizona House of Representatives Steve Montenegro revealed that Republican legislative leaders had been warning Governor Hobbs of her potential budgetary failure as far back as January. He further revealed that a notice from the Hobbs administration was only sent to House leaders two weeks prior to the funding crisis deadline and was sent to an incorrect email address.
Montenegro called out Hobbs for her administration’s “incompetence,” and explained the purpose of the House Ad Hoc Committee on Executive Budget Mismanagement, which met for the first time last week.
Montenegro explained, “The purpose of the ad hoc was literally on executive budget mismanagement and the failures that the Governor has demonstrated from the start. I mean at some point we understand that there are shifting numbers. There’s sometimes you budget for a certain amount of caseload or you budget for a certain amount of students or you budget for a certain amount of individuals that are going to have need of services in the state and that can fluctuate a little.
“We’ve seen that throughout the year it fluctuates. But the mismanagement that’s coming from this Governor’s office is startling—to see that they’re not factoring certain budgeting items in, completely ignoring it from start.
“In January, we pointed out there were failures in her proposal failing to include certain budget items. But now we’re seeing that in, specifically this latest debacle where we get an email sent to the wrong place and when we finally are able to see the email, there’s less than two weeks left before the Congregate Care program goes bankrupt. Then, the letter that she emailed states almost as a demand, ‘If this happens, kids will be sleeping in offices.’
“It’s almost as if there’s, first of all, no care, and second, no understanding that she should have let us know early on specifics on where we would need supplementals. So asking the question, is this a level mal-intent or incompetence?
“This is sheer incompetence in mismanagement of budgets, not understanding how to manage a budget, and when you’re talking about kids and the most vulnerable individuals in the state, it’s gross incompetence. Arizonans deserve better.”
Asked about the possible perception of the Ad Hoc Committee as having a political intent, Montenegro answered bluntly, “There are no games here. I haven’t even sat to consider politics in this subject. When we receive a letter, when our team receives a letter that kids are going to be sleeping in offices, there’s a certain level of indignation that I can’t ignore, especially when you’re saying kids will be sleeping in offices. And then we find out that the reasoning is because we can’t manage a budget.“
When asked about the potential intent of the Governor, Montenegro was equally direct:
“When we’re talking about kids here, I don’t care about the politics. What we do care about is making sure that these kids are taken care of and holding this Governor accountable because it’s gotten to a point now that we can’t ignore it. We genuinely can’t ignore the fact that we’ve got kids that are gonna be affected.
“We’ve got a Governor that decided to raise rates on the same program earlier this year. We know there’s an ongoing investigation, so we’re not gonna get in the middle of the investigation by Kris Mayes or Rachel Mitchell, County Attorney, or even others higher.
“But we want to find out, we want to get to the bottom of the budget mismanagement so that as we proceed forward in how we make sure these kids are taken care of and these vulnerable communities are taken care of, that from the legislature’s perspective, we’re putting safeguards and ending up some reforms that don’t allow the Governor’s incompetence to hurt these kids.”
Asked what recourse the House will have against a recalcitrant Governor, Montenegro answered, “Well, to start, that is why we’ve had our Appropriations Committee from the beginning asking the questions. Right now, the Governor refuses to give us access to her staff, to her policy advisors, to the people that know the numbers in these agencies. She refuses to make them accessible for us to talk to them, to understand where these numbers are.
“So what we’re doing is, we’re going to turn up the heat on holding her accountable. The Ad Hoc committee is formed to say, ‘Look, for weeks, we’ve been asking for your staff to sit down with our policy advisors on the numbers, on finding out where things are.’
“We get a letter two weeks out. We have been asking for weeks to sit down with them for numbers, to understand where these are. So, the whole purpose of this is now to take a deep dive in understanding where these numbers are so that Republicans can execute our plan. We are going to make sure that she’s using funds from her executive budget to fulfill these needs. And we’re going to make sure that, as we start stepping into the budget, we have the right reforms and we have the right safeguards for these kids.”
Referring back to the work of the Joint Legislative Budget Committee, he added, “If you go back and see the JLBC committee hearing that we had, that’s a preview of what we expect to happen with this Ad Hoc Committee on Executive Budget Mismanagement that I put together.
“Because by forcing them to come to talk to us, to finally get somebody to speak, which I’ve told you before, she’s been preventing her staff from coming to speak with our staff about numbers. But by her folks having to come to the committee, we’ve learned a lot, specifically, by learning how they’re mismanaging DCS. We’ve learned a lot, and the goal is through the Ad Hoc to expose the rest of what’s happening in other areas of either DCS, or DDD, or in general DHS on the mismanagement.“
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 | Mar 12, 2025 | Opinion
By the Arizona Free Enterprise Club |
If the Hobbs administration has proven itself to be uniquely skilled at anything over the past two years, it’s incompetence and negligence. But now, Arizona’s governor has taken the next step toward outright fraud.
As a part of her recent budget proposal, Hobbs has asked for a supplemental appropriation to the Arizona Department of Economic Security (DES) to cover a shortfall in the Division of Developmental Disabilities (DDD). Without the additional funding, the DDD could run out of money by May, affecting many people under a program that provides services to Arizonans with disabilities.
For weeks, Hobbs has been trying to push the blame onto the legislature, but the reality is, she has no one to blame but herself.
The problem stems from a COVID-era program funded entirely by the federal government that would pay parents who operate as caregivers for their children with disabilities—the Parents as Paid Caregivers program. The program was intended to be temporary, but Hobbs received approval from the federal government in February 2024 to make it permanent.
That approval came with a catch. Beginning on April 1, the State of Arizona would have to cover 32% of the costs, which Hobbs attempted to get funding for in last year’s budget. Her proposal was not approved by the legislature, which she mutually agreed to as part of the budget process. But she continued funding the program anyway—likely believing that she would be able to flip the legislature in November’s election or bully lawmakers into giving her the money. She failed on both counts and now has created a shortfall in the DDD program that has exceeded $100 million…
>>> CONTINUE READING >>>
by Matthew Holloway | Feb 16, 2025 | News
By Matthew Holloway |
The Arizona Free Enterprise Club has filed an official complaint with Attorney General Kris Mayes and Maricopa County Attorney Rachel Mitchell requesting they take legal action on the almost 40,000 duplicate signatures that were uncovered during the legal challenges to Proposition 140, the Make Elections Fair Arizona Act.
Proposition 140, which would have imposed a mixed system of Ranked Choice Voting and jungle primaries for future elections in Arizona, was defeated in the November election with almost 60% of the vote share.
During the unsuccessful legal challenge against Prop 140’s fraudulent signature gathering in April Smith v. Fontes, a court-appointed Special Master found that, of the original 41,387 pairs of signatures challenged, a total of 37,657 or approximately 99%, were in fact duplicates. Removing these duplications would have driven the proposition 3,300 signatures short of the of the minimum qualification to appear on the Nov. 5th ballot.
The Special Master, Retired Arizona Superior Court Judge Christopher Skelly, found that “Plaintiffs had proved by clear and convincing evidence that 37,657 signatures were duplicates— that the same person had signed more than once.”
Indeed the evidence showed that 253 people signed the petitions five times or more and one individual signed no less than 15 times.
In a letter to Mayes and Mitchell, Scot Mussi, president of the Arizona Free Enterprise Club wrote, “Double or even triple-signing the same initiative petition over the span of several months may well evince merely carelessness or forgetfulness. Signing one’s name five, ten, or even fifteen times, however, is not susceptible to that excuse.”
“There is certainly, at the very least, ample reason to believe that the individuals identified in Exhibit A knowingly violated Arizona law. I accordingly request that your respective offices open an investigation and pursue all appropriate criminal charges.”
You can read the complaint here. You can see the exhibit of duplicate signatures here.
In August, the AZFEC criticized the group behind Proposition 140, the “Make Elections Fair PAC,” with a strong condemnation that the group, which is sought to import “California-style elections to our state—got very creative in their signature gathering efforts. In fact, you could say that in many ways, they excelled in duplicating their work. And that’s exactly why Prop 140 should be invalidated.”
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 Daniel Stefanski | Jan 30, 2025 | Education, News
By Daniel Stefanski |
Arizona Republicans are reacting to a financial crisis involving a local school district and calling for serious investigations into the developing matter.
This week, a number of Republicans in both the Arizona House of Representatives and Senate released statements about the situation surrounding Isaac Elementary School District being placed in receivership by the Arizona State Board of Education. Some legislators are even looking to the Maricopa County Attorney to investigate the school district if the state’s attorney general does not spring into action.
House Speaker Steve Montenegro said, “Our sympathies begin and end with the students, faculty, and parents of Isaac. At the heart of this crisis are more than 4,800 students and hundreds of employees who have been abandoned by failed district leadership. The falsification of financial records and the mismanagement of public funds are a betrayal of trust and must be investigated immediately. The people of Arizona deserve to know how this happened, and those responsible must be held accountable.”
Senator David Farnsworth, the Chair of the Education Committee, added, “I’m incredibly concerned by what’s transpired within the Isaac Elementary School District. My colleagues in both the Senate and House are investigating what led to the tremendous overspending and what legislative reforms we need to adopt to make certain a similar situation doesn’t happen in the future. What the State of Arizona won’t do is provide this school district a financial bailout without implementing any corrective policies. Doing so would only be a Band Aid on the wound and most certainly do more harm than good.”
Senator Carine Werner, a first-term legislator and the Vice Chair of the Education Committee, wrote, “My heart goes out to the teachers and staff of Isaac Elementary School District, many of whom are already living paycheck to paycheck and are now fearing the money isn’t going to hit their bank accounts come pay day because of the gross financial mismanagement by administrators within this district. We are working on solutions to ensure the children of these schools are not disrupted in their learning environments and those responsible are held accountable.”
Arizona House Majority Leader Michael Carbone stated, “Since taking office, Mayes has shown zero interest in tackling corruption in school districts. Instead, she has used her office to attack parents who use Empowerment Scholarship Accounts to seek better opportunities for their children. This is the same Attorney General who dropped all felony charges against a former Scottsdale Unified Superintendent engaged in a laundry list of fraudulent schemes at multiple school districts. Amazingly, Mayes only required the former administrator to pay income taxes on illegal kickbacks the administrator received – a sweetheart settlement for the ages. The students in Isaac deserve better.”
In their letter sent to Maricopa County Attorney Rachel Mitchell, Arizona House Republican leadership wrote, “In late December, the Arizona Auditor General sounded the alarm over the possibility of a receivership and noted that the Isaac Elementary School District has been identified as one of Arizona’s highest-risk districts since December 2020. The Auditor General has also reported that ‘[t]hroughout FY 2024, the District failed to report expenditures in the appropriate funds throughout the year and submitted a misleading and inaccurate FY 2024 annual financial report’ to the Arizona Department of Education. And in another report documenting multiple deficiencies in Fiscal Year 2023, the Auditor General noted potential conflict of interest issues, miscoded financial transactions, incomplete financial records and documentation, failures to deposit cash in a timely manner, and failures to provide training and guidance related to restrictions on accepting gifts or benefits.”
The House Republicans asked Mitchell to confirm an investigation into the Isaac Elementary School District matter because they lack confidence that Mayes would “fully and fairly investigate the school district’s leadership over these serious issues.”
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
by Matthew Holloway | Jan 6, 2025 | News
By Matthew Holloway |
The National Retail Federation (NRF), in partnership with the Loss Prevention Research Council, reported that nationwide shoplifting has increased by an astronomical 93% when compared to 2019 figures. The incidence of shoplifting is up 26% over 2023 numbers. According to the NRF’s, “Impact of Retail Theft & Violence 2024,” retailers participating in the study logged 177 shoplifting incidents per day in 2023. On some days, that number would spike to over 1,000. In addition, 73% of the retail outlets surveyed warned that shoplifters are acting with significantly increased violence and aggression than in 2019.
David Johnston, NRF vice president of asset protection and retail operations, told FOX Business, “This isn’t what we were used to. This isn’t the shoplifting I was apprehending 30 years ago. These are people who are shoplifting because they know when they have an outlet to sell this merchandise to.”
Referring to the onset of organized retail shoplifting groups that resell stolen goods, he said, “Not every shoplifter is going out there and selling their stolen goods online or at a flea market. They’re selling them in larger mass quantities to these local, regional or transnational organizations who are helping to feed the system.”
In Arizona, the opposite seems to be true. Shoplifting is down according to Department of Public Safety statistics from 41,519 incidents in 2019 to 34,587 in 2023, a decrease of approximately 17% with incomplete data for 2024 showing just 29,832 incidents. Maricopa County Attorney Rachel Mitchell told Fox 10 that in 2023, her office received approximately 600 submittals for the charge of organized retail theft. Mitchell warned at the time that the number was increasing.
“Arizona, specifically Maricopa County, will not tolerate this type of offense that is driving retailers to close stores, to hurt the communities that the stores are located in, and driving people out of business,” Mitchell told the outlet.
The NRF report shows that retailers who are capable of tracking organized retail theft saw a 57% increase on average in these incidents from 2022 to 2023. The organization is advocating for the passage of the Combating Organized Retail Crime Act, which would increase federal level coordination with state and local level law enforcement.
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.
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