Arizona Gov. Katie Hobbs is under investigation for an alleged “pay-to-play” scheme after a report revealed that a group home business that cares for vulnerable children donated to her inauguration and the Arizona Democratic Party. , received approval for a rate hike.
Arizona Attorney General Chris Meyers, a Democrat, said her office opened an investigation into the matter after receiving a request from state Sen. TJ Shope, a Republican and Arizona Senate President Pro Tempore.
This follows a report in The Arizona Republic that Sunshine Residential Homes, an operator of group homes for foster children, has been approved by the Arizona Department of Child Safety (DCS) for a nearly 60% increase in taxpayer dollars after being previously denied funds.
Arizona governor vetoes ‘alien invasion bill’ that would have allowed police to arrest illegal border crossers
Arizona Gov. Katie Hobbs is under investigation for an alleged “pay-to-play” scheme after reports that a group home business received approval for a rate hike after donating to her inauguration and the Arizona Democratic Party. (Mario Tama/Getty Images)
The approval comes after the private company reportedly donated about $400,000 to Hobbs, including to her campaign and inauguration and to the state Democratic Party.
The publication reported that group accommodation providers have asked the department to increase prices for standard beds at least a dozen times since July 2022.
Ohana’s contract was not renewed this year after pay for one provider, Ohana Homes, was increased to $155 a day in September 2022, before Hobbs took office.
Sunshine Residential Homes sought a 20% rate increase to $179 per day in December 2022, but DCS refused on February 6, 2023, according to The Arizona Republic, citing records provided by the department.
Then, on February 9, 2023, Sunshine issued a $100,000 check to Hobbs’ first campaign. In May 2023, Sunshine Residential increased its rates, netting $234 per day for standard group home services. It is much higher than the average of $169 for other HDB flats. However, a spokesperson for Hobbs told the publication that the payment was made on December 15, 2022.
The increase means Sunshine has the most revenue among the dozens of home providers operating in the state, according to The Arizona Republic, which cited DCS and state contract records it reviewed.
The publication also reported that no other group housing provider received approval to increase rates during Hobbs’ tenure. Sunshine requested the increase due to financial hardships caused by the COVID-19 pandemic and inflation, The Arizona Republic reported.
Sunshine residential area in Arizona. (Google Maps)
Arizona governor blasts Republicans for hypocrisy after state Supreme Court upholds abortion ban
Shoop also sent the letter to Maricopa County Prosecutor Rachel Mitchell. He said it’s now up to investigators to determine what happened.
“We’re talking millions of dollars, but to know that not many, if any, people have experienced a rate increase of this magnitude, it’s absolutely disturbing,” Shope said, according to Fox 10 Phoenix.
The company’s CEO is a member of Hobbs’ inaugural committee.
“I have to believe that they view these accusations at least as I do, which is troubling at best and possibly worse,” Shope said.
Nick Klingerman, chief counsel for Mays’ office’s criminal division, said they were obligated to investigate the matter when notified.
“The Criminal Division of the Attorney General’s Office is legally authorized to investigate the allegations and crimes outlined in your letter. To that end, the Attorney General’s Office will conduct an investigation,” he wrote.
Arizona Governor Katie Hobbs delivers brief remarks before President Biden delivers remarks at the Tempe Arts Center on September 28, 2023 in Tempe, Arizona. (Rebecca Noble/Getty Images)
Click here to get the Fox News app
A spokesperson for Hobbs’ office denied the allegations in a statement and said the governor’s office played no role in DCS’s decisions about Sunshine’s pay.
“Like past investigations initiated by progressive and partisan lawmakers, the administration will be cleared of wrongdoing,” the statement said. “Governor Hobbs is a social worker who has been a champion for Arizona families and children. “To say her administration won’t do the right thing for foster children is outrageous.”
The approval of the sunshine home rate increase comes as the state seeks to reduce the use of group homes and move vulnerable children into family settings. For example, DCS refused to give home operators pay raises and severed ties with 16 providers during the contract renewal process, The Arizona Republic reported.
