Arizona Governor Katie Hobbs is facing an investigation into allegations of a "pay-for-play" scheme involving a group home business and her political campaigns. The probe was launched after revelations that a foster care provider, Sunshine Residential Homes, received a significant rate hike from the state after donating funds to Hobbs' inauguration and the Arizona Democratic Party.
Phoenix, Arizona - Arizona Governor Katie Hobbs is embroiled in an investigation into allegations of a "pay-for-play" scheme involving a group home business and her political campaigns. The probe was launched at the request of state Senator T.J. Shope, a Republican, who raised concerns over a significant rate increase granted to Sunshine Residential Homes, which operates group homes for foster children.
The investigation will focus on whether Hobbs' office improperly influenced the Arizona Department of Child Safety (DCS) to approve the rate hike after Sunshine donated approximately $400,000 to Hobbs' campaign, inauguration, and the state Democratic Party.
According to a report in The Arizona Republic, Sunshine Residential Homes had initially been denied a rate increase request. However, after the company donated $100,000 to Hobbs' inaugural campaign, it secured a substantial increase, netting the company $234 per day for standard group home services. This rate is significantly higher than the average rate of $169 for other group homes.
Senator Shope called the allegations "troubling at best and possibly worse," noting that the millions of dollars involved and the lack of other rate increases raised concerns. The investigation will determine whether there was any improper quid pro quo between Hobbs' office and Sunshine Residential Homes.
The Arizona Attorney General's Office has confirmed that an investigation has been opened and will examine the allegations of wrongdoing. Nick Klingerman, chief counsel of the criminal division in the Attorney General's Office, said they are obligated to investigate after being notified of potential offenses.
A spokesperson for Hobbs' office denied the allegations, stating that the governor had no role in the DCS decision and that the administration would be cleared of any wrongdoing. The spokesperson also noted that Hobbs is a social worker who has been a champion for Arizona families and children, and it is inappropriate to suggest otherwise.
The investigation comes at a time when the state is attempting to reduce its reliance on group homes and transition vulnerable children into family settings. The DCS has been denying rate increases to home operators and ending contracts with providers. However, the approval of a rate hike to Sunshine Residential Homes has raised questions about potential favoritism and a departure from this policy.
The investigation is expected to shed light on the allegations of impropriety and determine whether there was any violation of state laws or ethical standards. The outcome of the investigation could have significant implications for Hobbs' administration and the state's child welfare system.
