Since becoming Governor of Arizona in 2023, Katie Hobbs’ name has been synonymous with corruption. Now, one of her latest vetoes shows the lengths she is willing to go to protect her own schemes.
Buried on the afternoon of Friday, May 2, Hobbs vetoed SB 1612, along with 21 other bills. Sponsored by Arizona State Senator TJ Shope, SB 1612 would have required anyone applying for grants to various state agencies to disclose gifts, donations, or other support provided to the sitting governor. That sort of transparency should be something that every Arizonan can get behind—Republicans, Democrats, Independents, you name it—unless, of course, your agenda doesn’t involve the best interests of Arizona citizens, right Katie Hobbs?
This whole story starts at the very beginning of Hobbs’ tenure as governor. If you’ll recall, at the time, Hobbs set up a shady slush fund to provide donors with a conduit to buy political favor from her administration. While setting up and managing the fund, Hobbs illegally used public resources—like the state’s website—to solicit money for her inauguration. And she also tried to stop the disclosure of the names of those who donated to her inaugural fund.
But after immense political pressure and public records requests filed by groups like the Arizona Freedom Foundation (who operates AZ Free News), Hobbs finally released the names of the donors. One of the names of the groups on the list was Sunshine Residential Homes Inc., a for-profit company that contracts with the State of Arizona to provide some child welfare services. At the time, Sunshine Residential Homes made a donation of $100,000. But in June 2024, an eye-opening report revealed a deeper level of corruption—an alleged pay-to-play scheme between Hobbs and the group home.
According to the report, Sunshine Residential Homes donated approximately $400,000 toward the Arizona Democratic Party, Hobbs’ gubernatorial campaign, and her aforementioned inaugural fund. How generous! Surely there couldn’t be anything else behind this. Oh…wait a minute. The report revealed that Sunshine Residential Homes was granted a 60 percent increase at a time when the Arizona Department of Child Safety (DCS) cut loose 16 providers! On top of that, no other standard group home provider received a rate increase. This arrangement set up Sunshine Residential Homes to potentially receive millions of dollars more at the taxpayers’ expense. Are donations supposed to yield that kind of return?
While the scheme is still under investigation from both Attorney General Kris Mayes and Maricopa County Attorney Rachel Mitchell, Hobbs could’ve given the people of Arizona greater confidence in the government by signing SB 1612. Instead, she dropped a two-sentence veto letter saying that AHCCCS’ procurement and award processes are “consistent with Medicaid best practices.”
That’s right. Hobbs dodged the issue and attempted to bury it because she knows she has no good reason to oppose this bill. And that just about sums up Katie Hobbs. Her entire tenure has been filled with corruption. We’ve seen it when she diverted millions for an unauthorized program that has blown a hole in our state’s budget. We’ve seen it when she broke the law to take credit for the Republican tax rebate. We’ve seen it when she approved a $700,000 contract for Urias Communications, owned by the brother of the now-former Office of Tourism Director Lisa Urias, to create a new state logo. And now we’ve seen it once again as she tries to hide from her pay-to-play scandal through her veto pen.
SB 1612 would’ve brought some much-needed transparency and accountability, no matter who is in the governor’s office. That’s something all Arizonans deserve. But as long as Katie Hobbs is governor, we’ll get neither.
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