Gov. Katie Hobbs faces scrutiny [1] over her inauguration fund, with accusations of ‘pay-to-play’ politics following a substantial donation from Sunshine Residential Homes. The state’s largest group home provider, Sunshine, made a $100,000 contribution to Hobbs’ inaugural fund just days after being denied a 20% rate increase by the Department of Child Safety (DCS). In a surprising turn of events, Sunshine received a 30% rate hike three months later and another 20% increase this year.
A Chain of Events Leading to Controversy
In February 2023, Sunshine Residential Homes’ request for a rate increase was rejected by DCS, only for the company to donate $100,000 to Hobbs’ fund three days later. This donation marked the second-largest contribution to Hobbs’ inauguration, which had already been funded beyond its $207,000 cost.
Rate Increases Amid Controversy
Sunshine successfully obtained a 30% rate increase three months after the donation. This decision, according to a DCS spokesperson, stemmed from concerns that Sunshine might otherwise use its facilities for federal refugees instead of state children. This justification, however, raises eyebrows given the timing and subsequent rate hikes. By June 2023, Sunshine’s rates had climbed to $234 per day per child, significantly higher than the average rate of $169 among other group homes. Additionally, Sunshine secured approval for more beds, enhancing its profits.
Political Contributions and Allegations of Pay-to-Play
Sunshine’s financial support extended beyond the inaugural fund. The company also contributed $200,000 to the Arizona Democratic Party and another $100,000 to the state Democratic Party, alongside $200,000 during Hobbs’ gubernatorial campaign. This pattern of donations and subsequent financial gains has led to calls for an investigation.
Calls for Investigation
Sen. T.J. Shope, R-Coolidge, has urged Attorney General Kris Mayes and Maricopa County Attorney Rachel Mitchell to investigate the potential improprieties surrounding Hobbs’ fundraising and the rate increases granted to Sunshine. Highlighted in these complaints was the lack of transparency in Hobbs’ administration, pointing to heavily redacted records and the favorable treatment Sunshine received compared to other group home operators. Shope’s message to Mayes lays out all the details in this post:
Today’s article on @azcentral [2] by @sbarchenger [3] brings many legal questions that are both criminal and civil in nature. I call for @AZAGMayes [4] and/or Maricopa County Attorney @Rachel1Mitchell [5] to investigate this matter. We must find the truth of what @GovernorHobbs [6] knew and at what… pic.twitter.com/CVbyU6vnSs [7]
— T.J. Shope (@TJShope) June 6, 2024 [8]
Conclusion
The allegations against Gov. Katie Hobbs underscore the need for transparency and accountability in political fundraising and state contract decisions. The substantial donations from Sunshine Residential Homes and the subsequent financial benefits raise significant concerns about the integrity of the process and warrant thorough investigation.
UPDATE:
Arizona Attorney General Kris Mayes has opened a formal investigation into the matter.
UPDATE In response to GOP Sen @TJShope [9]'s call for review of potential 'pay-to-play' scheme outlined in @sbarchenger [3]'s story, @AZAGMayes [4]'s office says it will open investigation. https://t.co/i6oPDOnLg0 [10] pic.twitter.com/QMisfbN8gZ [11]
— Brahm Resnik (@brahmresnik) June 7, 2024 [12]