The Arizona State Senate has appointed former Arizona Supreme Court Justice Andrew Gould as special counsel to investigate allegations of a pay-to-play scheme involving Gov. Katie Hobbs, a case that has direct ties to two Gilbert residents running for statewide office this fall.
The allegations center on Sunshine Residential Homes, a company that operates group homes for children in Arizona’s foster care system. At a press conference Wednesday, Republican state Sen. Jake Hoffman, chairman of the Senate Committee on Government, said executives and people connected to Sunshine Residential contributed more than $500,000 to benefit Hobbs, her political operations and various funds.
Hoffman said that after those contributions, Sunshine received a 56% increase in its per-child rate, making it the highest-paid group home provider in the state, even though internal staff had noted no increase was necessary.
“Political donations went in, taxpayer-funded rate increases came out, all to benefit a key donor to Katie Hobbs,” Hoffman said. “What we have seen has every appearance of a pay-to-play corruption scandal at the highest levels of our state government.”
Attorney General Kris Mayes, also a Democrat, previously investigated the matter and concluded there wasn’t sufficient evidence to prosecute. Gould’s appointment as special counsel means the Senate investigation will now examine both Mayes’ decision not to prosecute and the underlying allegations against Hobbs.
Hobbs is running for reelection this November against U.S. Rep. Andy Biggs, R-Gilbert. Mayes is seeking reelection against Senate President Warren Petersen, a Republican who also lives in Gilbert, putting two of the governor’s most prominent local critics squarely in the middle of the controversy.
Hobbs and Mayes have both criticized the investigation and Gould’s appointment as a political stunt timed to the campaign season. A representative for the Attorney General’s Office, communications director Richie Taylor, told The Center Square that the office interviewed multiple sources, reviewed more than 100,000 pages of records and compiled nearly a terabyte of data during a two-year investigation. Taylor said the office views the Senate Republicans’ renewed investigation, along with Hoffman’s earlier announcement of subpoenas, as a political move ahead of the Nov. 3 general election.
Regardless of timing, the core sequence of events — a large campaign contribution followed by a significant rate increase for the donor — remains at the heart of the dispute. Current polling shows Hobbs with a significant lead heading into the election, and it remains to be seen whether the renewed scrutiny will affect the race against Biggs before voters decide on Nov. 3.
