Governor of Arizona Katie Hobbs A group home business that cares for vulnerable children is being investigated for an alleged “pay-for-play” scheme after it was approved for a rate hike following his inauguration and donated to the Arizona Democratic Party, according to a report.
Arizona Attorney General Chris Mayes, A Democratsaid his office began investigating the matter after receiving a request from state Sen. T.J. Shoup, a Republican who is also the president pro tempore of the Arizona Senate.
The request comes after a report in The Arizona Republic showed Sunshine Residential Homes, an operator of group homes for foster children, was approved for a nearly 60% increase in taxpayer money through the Arizona Department of Child Safety (DCS) after previously being denied a raise.
Arizona Governor Katie Hobbs is under investigation for an alleged “pay-for-work” scheme after a report revealed a group home business was approved for a rate hike after her inauguration and donated to the Arizona Democratic Party. (Mario Tama/Getty Images)
The approval came after the private company donated nearly $400,000 to Hobbs, including donations to his campaign and swearing-in, as well as to the state Democratic Party, according to the report.
Group home providers have requested the department at least a dozen times to increase the standard bed rate starting in July 2022, the publication reported.
One provider, Ohana Homes, received a $155-per-day raise before Hobbs took office in September 2022, and then Ohana’s contract was not renewed this year.
Sunshine Residential Homes sought a 20% increase to $179 per day in December 2022, but DCS denied it on Feb. 6, 2023, according to records provided by the department cited by The Arizona Republic.
Then, on February 9, 2023, a $100,000 check from Sunshine was deposited into Hobbs’ inaugural campaign. And in May 2023, it secured a rate increase, forcing Sunshine Residential to pay $234 per day for standard group home services. That’s far more than the average $169 for other group homes. However, a Hobbs spokesperson told the publication that the payment was made on December 15, 2022.
The increase means Sunshine is earning the most profits out of dozens of home providers operating in the state, the Arizona Republic reports, citing DCS and state contract records.
The publication also reported that no other group home provider has been approved for a rate increase during Hobbs’ tenure. According to The Arizona Republic, Sunshine requested the increase due to financial difficulties amid the COVID-19 pandemic and inflation.
A sunshine residential home site in Arizona. (Google Map)
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Meanwhile, the shop has also sent a letter to Maricopa County Attorney Rachel Mitchell. They say it is now up to investigators to figure out what happened.
“We were talking about millions of dollars, and to know that very few people, if any, had seen a rate increase that large was certainly upsetting,” said Shopp, Fox 10 Phoenix,
Hobbs, the firm’s CEO Inaugural Committee,
“I have to believe that they, at the very least, see the allegations the same way I do, which is that it’s most troubling, and possibly even worse,” Schopp said.
Nick Clingerman, the chief attorney for the criminal division in Mayes’ office, said they were obliged to for inspection After getting information about the case, the police have started taking action.
“The Criminal Division of the Attorney General’s Office is statutorily authorized to investigate the allegations and offenses outlined in your letter. To that end, the Attorney General’s Office will commence an investigation,” he wrote.
Arizona Governor Katie Hobbs delivers a short speech prior to remarks by President Biden at the Tempe Center for the Arts on September 28, 2023 in Tempe, Arizona. (Rebecca Noble/Getty Images)
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A spokesperson for Hobbs’ office denied the allegations in a statement and said the governor’s office played no role in DCS’ decision on Sunshine’s salary.
“Like previous investigations instigated by radical and partisan legislators, the administration will be cleared of wrongdoing,” the statement said. “Governor Hobbs is a social activist who has been a champion of to Arizona For families and children. It’s outrageous to suggest that his administration won’t do the right thing for children in foster care.”
The move to approve a rate hike to Sunshine Residential Homes comes at a time when the state is considering reducing the use of group homes and moving vulnerable children into family settings. For example, DCS has denied pay raises to home operators and terminated relationships with 16 providers during the contract renewal process, The Arizona Republic reported.
