Battle resumes over Arizona Gov. Katie Hobbs’ department director nominees

PHOENIX – The long-running battle between Arizona Senate Republicans and Democratic Gov. Katie Hobbs over her department director nominees entered a new phase on Thursday.

On the same day a Senate vetting committee approved one of Hobbs’ picks, GOP leaders indicated another nomination was doomed.

In its first hearing in 17 months, the Senate Committee on Director Nominations recommended the confirmation of Michael Wisehart as Department of Economic Security (DES) director.

Wisehart is a longtime DES employee who previously served as the agency’s director when Republican Doug Ducey was governor.

The full Senate will consider Wisehart’s nomination at a later date, but there is no reason to think the GOP-led chamber won’t follow the committee recommendation.

Why have many of Gov. Katie Hobbs’ nominees been in limbo?

Senate President Warren Petersen created the Committee on Director Nominations, which consists of three Republicans and two Democrats, about a month after Hobbs took office in early 2023. The panel was tasked with vetting nominees subject to Senate approval before the full chamber vote.

At the beginning, the committee approved most of the nominees it vetted. However, several candidates were rejected following sometimes contentious hearings.

Sen. Jake Hoffman, who chairs the committee, said the rejected nominees weren’t fit for the jobs.

“We promised to honestly, accurately and thoroughly vet each of these nominees and only approve competent, nonpartisan choices — and that is precisely what we will continue to do. The people of Arizona expect nothing less,” Hoffman said in a press release Thursday.

Shortly after Hoffman’s committee rejected Joan Serviss as housing director on Sept. 14, 2023, Hobbs withdrew her remaining 13 director nominations.

Next, she tried to sidestep the committee by naming interim directors. The interims then appointed “executive deputy directors” and resigned, leaving the deputies in charge.

Republicans took Hobbs to court over the maneuver and won. A Maricopa County Superior Court judge ruled in June 2024 that the executive deputy director appointments were illegal, regardless of the job titles.

Senate Republicans call for housing nominee to withdraw

Hobbs has since renominated Serviss, who has been leading the Department of Housing.

But now, Senate Republicans are calling for Serviss to withdraw from consideration and resign, citing an October 2024 Arizona Auditor General report that flagged the department’s failure to curb fraud, theft, waste and abuse of taxpayer dollars.

The lack of oversight contributed to a fraudulent $2 million transfer from the State Housing Trust Fund in 2023, according to the audit. The loss was covered by insurance.

“Disturbing fraud, waste and abuse have occurred under her watch,” Petersen said in a press release Thursday. “State lawmakers and citizens who rely on this agency are outraged. The Senate cannot in good conscience confirm this director.”

A spokesperson for Hobbs disputed the accusations and accused of Hoffman of spreading “baseless lies” about Serviss.

“Here’s the truth: The issues cited by Senate Republicans existed before Director Serviss’ tenure – and now she is the one who is fixing the problems created by previous administrations,” Lilian Soto, the governor’s press secretary, said in an email.

Soto also praised Serviss for the work she has done while leading the Department of Housing.

“Under her leadership, the state has implemented historic investments in the Housing Trust Fund to lower the cost of housing for Arizonans, including creating more than 4,500 affordable units and 320 transitional housing units, and connecting 500 first-time homebuyers to down payment assistance. Her record of helping Arizonans secure housing speaks for itself,” she wrote.

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