The Arizona Free Enterprise Club Is Committed to Stopping the Hobbs Agenda

In the last two years, Katie Hobbs has failed to make good on any of her top priorities, and after spending millions to flip the legislature, she was only left with more Republicans in both chambers and being called the “biggest loser” of this last election. Back this year with new goals outlined in her State of the State address and budget proposal, the legislative majority must ensure that, once again, the Hobbs agenda is stopped dead in its tracks. The Arizona Free Enterprise Club is committed to helping lead the fight to block all of Hobbs’ priorities.

Reckless Spending & A Broken Budget Proposal

First and foremost is Hobbs’ budget proposal. Last year, the legislature crafted a budget that finally slowed the spending growth in the state, but now Hobbs is proposing a $1 billion+ spending increase, representing 7.5% growth in spending over last year. If that wasn’t bad on its own, Hobbs’ proposal is a broken deficit budget. Hobbs failed to account for any formula growth in the Medicaid program, which is completely unheard of. Once included, the Hobbs budget proposal results in a $192 million deficit in 2027, growing to a staggering $390 million deficit in 2028.

Housing Costs

Included in her broken budget is one of Hobbs’ top priorities: extending and expanding the state level low-income housing tax credit, a program that is rife with fraud and abuse and comes with a $600 million price tag. Hobbs is the one who unilaterally shut down single family house development last year because of a manufactured water crisis and took illegal actions late last year to further limit homebuilding in the state, for which she is being sued. Hobbs has only added to the rise in housing costs, and her “solutions” will only continue to drive them up further. They should receive no consideration by the legislature.

Attacking School Choice

Hobbs, unsurprisingly and predictably, is back again attacking the widely popular universal ESA program, continuing to spread the lie that the program is “bankrupting the state.” The ESA program has resulted in savings for taxpayers as more and more students benefit from the program, evidenced by the fact that the state once again has a surplus. Last year she tried (and failed) to regulate the program out of existence, and this year her plan is to place income caps to kick more than 12,000 students currently benefiting from ESAs off and force them back into government schools. Hobbs calling for “accountability” in the program is especially hypocritical considering that, just a week after her State of the State address, a public school district went into state receivership for a $12 million budget shortfall after running up a debt of $28.5 million. Hobbs should start with cleaning up fraud in the public school system before taking shots at the ESA program.

Border

Though Hobbs talked tough on the border in her State of the State address, just days later she vowed not to assist the federal government in deporting illegals. This is not shocking considering that last year she vetoed the Border Security Act, which would have empowered local law enforcement to apprehend and deport individuals who enter our country illegally outside of a lawful port of entry. But the voters spoke. After being vetoed, the legislature placed it on the ballot, where it was overwhelmingly approved in November.

Hobbs’ priorities should be a nonstarter for the legislature. Her number one enemy, the ESA program, is not bankrupting the state, but her broken budget proposal certainly would. Her handout to developers by extending the low-income housing tax credit program won’t lower housing costs, but abandoning her manufactured water crisis would. And her border proposals won’t protect Arizona, but working with the Trump administration would.

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If Democrats Want to Stop Fraud, They Should Start with Public School Districts

With the new year here and the 2025 legislative session officially underway, Democrats are already proving they can’t learn a lesson. Led by Governor Katie Hobbs, one of their primary targets is once again…you guessed it…Arizona’s Empowerment Scholarship Account (ESA) program. Stop us if you’ve heard this before.

You would think that Democrats would find a different target after getting trounced in an election where teachers’ unions and other anti-school choice groups made it a referendum on school choice. But no. After 2 ½ years and multiple failures trying to overturn school choice, they’d rather double down on their same tired and out-of-touch policies.

This time, Hobbs and the Dems say they want to roll back ESAs because of all the supposed “fraud” in the program. Never mind the fact that the rate of waste, fraud, and abuse in the ESA program is extremely low. Never mind the fact that ESAs have proven to be far more financially accountable than other government programs. Democrats don’t care about facts. Instead, they want to regulate this popular program while Arizona’s Democrat Attorney General Kris Mayes asks for more funding to investigate ESA fraud.

But here’s a message for Hobbs, Mayes, and the rest of the Democrats:

If you care so much about fraud, why not investigate Arizona’s public school districts?

They could start with Isaac Elementary School District (IESD).

Earlier this week, IESD was placed under a state receivership after it was determined that it had a budget shortfall of over $12 million! And this didn’t come as a surprise. The Auditor General has been trying to stop the mismanagement of funds in this school district for five years!

A $12 million budget shortfall in just one school district is mind-blowing, but IESD is certainly not alone. School districts throughout our state have been mismanaging millions, going into default, and committing fraud for years.

Back in 2022, Mesa Public Schools (MPS) failed to explain where $32.3 million of their federal emergency funds slated for COVID expenses went. The investigation came after reports that MPS teachers were asking parents to donate basic school supplies they were running out of because the district wouldn’t cover them. But instead of having a clear explanation for the money that was buried under expenses listed as “other,” “indirect costs,” and “etc.,” MPS officials dodged the question and claimed no records existed for those categories.

Also, in 2022, a former superintendent and another employee from Toltec Elementary School District were indicted for fraudulent schemes, misuse of public monies, and theft. This came after the employees secretly used their personal monies to fraudulently inflate their Arizona State Retirement System benefits.

Then, there’s Higley Unified School District (HUSD). Back in 2021, HUSD’s now-former superintendent, Dr. Denise Birdwell, was indicted on 18 counts related to procurement fraud, misuse of public monies, fraudulent schemes and practices, and more. This came after the Auditor General found that Dr. Birdwell conspired with employees of Education Facilities Development Services (EFDS) to circumvent school district procurement rules to improperly award the group with a $2.5 million project development service contract for the construction of two new schools. On top of that, the Auditor General also found that Dr. Birdwell misused public monies when she authorized the unlawful use of $6 million in restricted public funds toward the construction of the schools.

And let’s not forget what happened in Yuma County toward the end of last year when a former superintendent secretary with the Hyder Elementary School District was indicted for theft, misuse of public monies, and forgery. The indictment came just eight weeks after the same woman was arrested in Scottsdale in connection with an elaborate scheme against the Cocopah Middle School Association of Parents and Teachers.

You won’t hear about any of this type of fraud from Hobbs, Mayes, or other Democrats because this isn’t about fraud. It never was. They just want to find any way they can to regulate our state’s historic school choice program—all to protect their buddies in the teachers’ unions.

But here’s a message for Hobbs and Mayes. Whether you like it or not, school choice is here to stay in Arizona. And we will keep fighting back with this winning message because every student in our state deserves the best education possible and the funding to make it happen. Instead of griping about ESAs, which have way more oversight than the typical school district, show us that you really care about fraud and start investigating our public schools.

Help Protect Freedom in Arizona by Joining Our Grassroots Network

Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!

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Arizona Free Enterprise Club Mourns Passing of Chairman Dean Riesen

PHOENIX, ARIZONA – The Arizona Free Enterprise Club is saddened to announce the passing of Dean Riesen. Dean was a founder of the organization and served as Chairman for over a decade.

Dean Riesen

Scot Mussi, President of the Arizona Free Enterprise Club, issued the following statement:

“Our organization and the state of Arizona suffered a great loss with the passing of our Chairman Dean Riesen. As one of the founders of the Arizona Free Enterprise Club, Dean was instrumental in building one of the most influential and effective policy organizations in the state. Our countless legislative and ballot box victories over the last 20 years would not have been possible without Dean’s guidance and unwavering commitment to limited government and pro-growth policies. He will be sorely missed.”

Riesen began his life in the State of Iowa and commenced a fulfilling journey of learning, leadership, and service that took him to Cornell College for education. It was here at this institution that he met his love of his life – his wife of 42 years, Bambi Hull Riesen. They had three children together and now three grandchildren. Dean rose to prominence with the Carlson Real Estate Company – even helping to negotiate a multi-billion-dollar, international merger.

After the turn of the century, Riesen and his family moved to Scottsdale, Arizona, and he helped lead a commercial real estate investment and development firm, Rimrock Partners. He then founded, what is described as his biggest philanthropic project, the Tanzania Water Fund, which provided clean water to over 200,000 individuals. Dean was highly involved in a number of other private and public efforts and organizations throughout his life, including the Arizona Free Enterprise Club, where he sacrificed countless hours to strengthen Arizona’s standing as one of the most free-market and conservative states in the union.

Our members, supporters and activists at the Arizona Free Enterprise Club will forever be grateful for Dean Riesen and his life of service to this state, our nation, and the world. He will be missed, and his work will live on for future generations of Arizonans and Americans.

Read the official obituary of Dean Riesen here.

Help Protect Freedom in Arizona by Joining Our Grassroots Network

Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!

Join our FREE Grassroots Action List to stay up to date on the latest battles against big government and how YOU can help influence crucial bills at the Arizona State Legislature.

Arizona Free Enterprise Club Requests Investigation Into Governor Hobbs’ Inaugural Fund

PHOENIX, ARIZONA – This week, the Arizona Free Enterprise Club, through its attorney, sent a letter to Maricopa County Attorney Rachel Mitchell, requesting that she investigate Governor Katie Hobbs and her so-called Inaugural Fund, and that she prevent Hobbs and her Fund from engaging in illegal electioneering with funds held by the Inaugural Fund.

The communication from the Arizona Free Enterprise Club follows earlier attempts to hold the Governor and her Inaugural Fund accountable. Previously, a member of the State Legislature filed a complaint with the Arizona Attorney General, alleging that any use by the Inaugural Fund monies for the purpose of influencing an election would be a violation of Arizona state statutes. Additionally, House Speaker Ben Toma and Senate President Warren Petersen have warned the governor that state law prevents her from using public resources, including “web pages, personnel, and any other thing of value to influence an election.”

“While everyone is focused on the alleged pay-to-play scheme by the Governor’s Office, Katie Hobbs continues to evade accountability for her illegal advertisement and collection of funds for her political endeavors in the State of Arizona,” said Scot Mussi, President of the Arizona Free Enterprise Club. “As we make clear to County Attorney Mitchell, Hobbs must be stopped or else she – and future governors – will misuse taxpayer resources and ignore laws meant to protect the state’s interests. The Arizona Free Enterprise Club will not allow this blatant disregard for the rule of law to proceed.”

In the letter to County Attorney Mitchell, the Arizona Free Enterprise Club raises two points for the prosecutor’s consideration. First, the Inaugural Fund raises funds that utilize state resources. Before Hobbs was sworn into office, her Inaugural Fund used an official, taxpayer-funded state website to drum up donations to the fund by directing individuals and entities to a staffer on her campaign. Second, Governor Hobbs and members of her team will not commit to foregoing any use of the remaining funds in the Inaugural Fund for the purpose of influencing elections.

As the Club notes, if the governor is not stopped, there will be nothing to prevent her, or any other elected official who lacks scruples, from turning state websites into free advertising for political aims and utilizing other state resources to drum up money that will be spent politically.

Read the letter here.

Katie Hobbs’ Corruption Is Reaching New Heights

June has been off to a brutal start for Arizona Governor Katie Hobbs. She kicked off the month by breaking her own hiring freeze to bring in a new press secretary. Then, a few days later, a Maricopa County Superior Court judge ruled that Hobbs violated the law when she sidestepped the Senate’s confirmation process for agency directors. And to top it all off, an eye-opening report was released uncovering an alleged pay-to-play scheme between Hobbs and an Arizona group home.

This shouldn’t come as much of a surprise. After all, this is the same Katie Hobbs who broke the law to take credit for the Republican tax rebate. And it’s the same Katie Hobbs who required the nonprofit behind her $30 million medical debt relief program to give her credit. But this latest scandal shows that Hobbs’ corruption has reached a new level.

According to the report, Sunshine Residential Homes has donated approximately $400,000 toward the Arizona Democratic Party, Hobbs’ gubernatorial campaign, and her inaugural fund. And what did the group home receive in return? A nearly 60 percent rate increase! And this was at a time when the Arizona Department of Child Safety (DCS) cut loose 16 providers, and no other standard group home provider received a rate increase.

That’s convenient.

Sunshine Residential Homes could potentially receive millions of dollars more at the taxpayers’ expense from their investment (sorry…donation). And that must have their CEO—who also happened to serve on Hobbs’ inaugural committee—excited.

Hmmm…Hobbs’ inauguration fund. Do you remember that?

This entire saga began when Hobbs set up a shady inaugural 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. And lo and behold, guess which group was among those listed? Sunshine Residential Homes Inc., which at the time made a donation of $100,000. But this is just one part of the story.

After raising huge sums of money for her inauguration, Hobbs and her administration only spent a small fraction of it for that purpose. At the time, it was reported that Hobbs brought in $1.5 million from approximately 120 donors for an inaugural event that cost less than $210,000.

So, what happened to the rest of the money? It’s clear that Hobbs and the Democrats plan to spend it on legislative races this November all while using the fund as nothing more than a quid pro quo factory on the Ninth Floor.

This must be stopped, and a criminal investigation into this matter is absolutely necessary. So far, Arizona Attorney General Kris Mayes and Maricopa County Attorney Rachel Mitchell have announced that they will investigate. But Mayes should be nowhere near this investigation. She has proven time and time again that she will do whatever it takes to protect Hobbs and the Democratic party from any real accountability—which is probably why she’s pushing so hard for Mitchell to stand down. And it’s also probably why Hobbs refuses to answer questions about whether she would comply with both a Mayes and Mitchell investigation.

Hobbs knows she’s in trouble, and she’s big mad that this scandal has been exposed. But her good buddy Mayes can’t be allowed to bail her out this time.

Rachel Mitchell should not only be the one to conduct the investigation, she should step in immediately to freeze the assets.

Hobbs’ inaugural slush fund is still in existence and sitting on a mountain of cash. She’s planning on spending contributions from this fund—which is under criminal investigation—on political campaigns in the coming months. This can’t be allowed.

From its inception to today, Hobbs’ inaugural fund has been a monument to corruption and abuse. And while the funds should probably just be refunded to the initial donors, that’s impossible now that it’s all under criminal probe.

It’s time for Rachel Mitchell to freeze these funds pending the outcome of the investigation. Giving taxpayer dollars to political donors is a severe misuse of public funds. And it should not be taken lightly. Mitchell should stop donors from cashing in on the Hobbs gravy train and give Arizona taxpayers the accountability they deserve from their government leaders.

Help Protect Freedom in Arizona by Joining Our Grassroots Network

Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!

Join our FREE Grassroots Action List to stay up to date on the latest battles against big government and how YOU can help influence crucial bills at the Arizona State Legislature.

It’s Time to Hold AG Kris Mayes Accountable for Abusing the Power of Her Office

Nobody likes a bully, and yet some people relish playing such a role. Here in Arizona, perhaps no person has taken on that persona quite like Kris Mayes. When she began her political career with the Arizona Corporation Commission, Mayes quickly gained a reputation for bullying other people around, but since becoming Arizona’s Attorney General (AG) in January 2023, she has taken it to a whole other level.

Within months of occupying the AG office, Mayes began using her post to target and investigate the very people and entities she is constitutionally obligated to defend. First in her crosshairs was the Arizona Department of Water Resources (ADWR), a state agency she is legally obligated to represent and provide legal advice to. But because she wants to score political points with her radical environmental allies, she decided to threaten legal action against ADWR unless they provide her with documentation showing that the agency is in compliance with its water management responsibilities.

Mayes then turned around a few weeks later and went after the Empowerment Scholarship Account (ESA) program at the Department of Education. In a public tirade, she falsely claimed that the budget agreement that protected universal school choice would bankrupt the state, despite the expenditure data showing that the ESA program actually saves the state money. When that didn’t stop the Republican budget bill from being signed by Governor Hobbs, Mayes doubled down on her ESA assault by threatening legal action against her own client, the Arizona Department of Education, over the program.

And now that she has had more time to get comfortable in office, Mayes is discovering new and creative ways to abuse her power, including collusion and the usage of dirty tactics to target political opponents.

Mayes Colluded with Cochise County Attorney to Pursue Indictments Over the Election Certification

Last year, the State Bar began investigating Cochise County Attorney Brian McIntyre for a possible violation of attorney-client privilege with his clients the Cochise County Board of Supervisors. And it proved to be quite revealing.

According to a letter recently submitted as evidence to the State Bar, McIntyre appears to have colluded with Secretary of State Adrian Fontes and AG Mayes against Cochise County Supervisors Peggy Judd and Tom Crosby. In the letter, McIntyre asked Mayes to retract an opinion set by her predecessor, Mark Brnovich, on expanded hand counts. But this request was made while McIntyre’s clients were actively appealing to be able to complete those hand counts. That’s a big no-no.

But did Kris Mayes stop him? No. Several months later, Mayes withdrew Brnovich’s opinion as requested by McIntyre. And then, in November of last year, she secured indictments against Judd and Crosby for delaying certification of the 2022 elections results—charging them with felonies for election interference and conspiracy. That’s an outrageous abuse of power, but Mayes’ overreach didn’t stop there.

Mayes Used Dirty Tactics to Secure Indictments Against Alternative Slate of Electors

Last month, an Arizona grand jury indicted a slate of alternate electors for the 2020 election and hit them with charges of conspiracy, fraud, and forgery. But according to a new report from Politico, these indictments were unprecedented and “unusually aggressive.”

And who do you think was leading the probe? Kris Mayes.

One witness described the questioning as “intense” and having “exceeded the limited scope that prosecutors had publicly acknowledged.” On top of that, some of those indicted were promised by prosecutors that they were not the subject of the investigation nor any charges.

But that proved to be a lie. Just ask one of President Trump’s lawyers, Jenna Ellis, for example. According to the report, Mayes’ prosecutors asked Ellis to appear for a “free-talk interview.” And a prosecutor in Mayes’ office even indicated in a letter that Ellis was not the target of the State’s investigation. But after a follow-up letter to arrange an interview reiterated as much, Ellis was indicted just four days later. And the same thing happened to another of Trump’s attorneys, Christina Bobb.

That’s low…and dirty. And you would think that our own corporate media, like the Arizona Republic, would be on top of such a revealing news story, but no. The Republic is so infatuated with Mayes that it would rather write glowing puff pieces about her while national news outlets and other alternative media blow the whistle on such government overreach.

The reality is that all of this should be more than enough to conduct a deep dive into the actions of AG Kris Mayes. And while the legislature may have started an investigation into her prosecutorial conduct, our court system and the Bar Association need to hold her accountable as well. All of this stinks, and if our legal system is really concerned about setting precedent and protecting norms, then these types of actions by a prosecutor need to be stopped.

Let’s start with Kris Mayes.

Help Protect Freedom in Arizona by Joining Our Grassroots Network

Arizona needs to have a unified voice promoting economic freedom and prosperity, and the Free Enterprise Club is committed to making that happen. But we can’t do it alone. We need YOU!

Join our FREE Grassroots Action List to stay up to date on the latest battles against big government and how YOU can help influence crucial bills at the Arizona State Legislature.