Why hasn’t Hobbs met with investigators in AG’s ‘pay-to-play’ probe? Governor responds

Gov. Katie Hobbs said she’s cooperating with the Arizona Attorney General’s Office as it investigates allegations of a “pay-to-play” scheme involving her administration. However, she did not explain why she has not yet agreed to a requested interview.

“We’ve been in conversation and still are with her office about the request, and, as I’ve said many times, I’m very much looking forward to this investigation wrapping up,” Hobbs told KTAR News 92.3 FM’s Arizona’s Morning News on Friday.

Why was Gov. Katie Hobbs accused of “pay-to-play” scheme?

The allegations stem from a June 2024 Arizona Republic report claiming that Hobbs’ administration gave preferential treatment to Sunshine Residential Homes.

The company, which contracts with the Arizona Department of Child Safety, donated about $400,000 to Hobbs’ inauguration committee and the Arizona Democratic Party.

The newspaper reported that DCS later approved a 30% rate increase for the company.

Andy Biggs has lobbed attack ads against Katie Hobbs over investigation

Hobbs has denied any wrongdoing, saying there is no evidence that she or her office influenced the agency’s decision.

Former DCS Director David Lujan approved the special rate increase for Sunshine Residential Homes in 2023. He has said the Governor’s Office did not influence or pressure him to approve it.

The investigation has become a major issue in the governor’s race.

Republican nominee Andy Biggs has focused on the probe in his campaign against Hobbs. He released a campaign ad accusing her of awarding a lucrative state contract to a donor.

Hobbs says she had nothing to do with Sunshine Residential Homes rate increase

Hobbs said she believes the investigation will clear her of wrongdoing.

“I know that it’s gonna show what the previous director has said, what public reporting has confirmed: I was not involved at all in this rate increase decision and the department acted in the best interest of foster children when they made this decision,” Hobbs said.

According to The Arizona Republic, the Arizona Attorney General’s office formally requested an interview with Hobbs in April, but the interview had not taken place as of August.

When asked why she had not sat down with Attorney General Kris Mayes, a fellow Democrat, Hobbs said their shared political affiliation was not a factor.

“It’s not about political party. The investigation is ongoing. We’re in conversation about it,” Hobbs said.

At an Aug. 3 news conference, Mayes pushed back on the suggestion that Hobbs was evading investigators.

“You cannot blow off the attorney general’s office,” Mayes said, while disagreeing with “the characterization” that Hobbs was dodging the agency.

Mayes is also seeking reelection and faces former Arizona Senate President Warren Petersen.

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