Full Text:
Pay-To-Play Scandal Involving AZ’s Democrat Governor Unfolding
State contractor donated $400,000 to Gov. Katie Hobbs and AZ Democrats, and got millions more in state money
DCS over the course of the past year approved what amounts to a nearly 60% increase in the rate that Sunshine Residential Homes Inc. charges to care for a child for a day, meaning potentially millions of dollars more going to the company at taxpayers’ expense.
No other standard group home provider — there are dozens — was approved for any rate increase during Hobbs’ tenure.
After initial rejection, Sunshine’s rate increase comes after political donation. Sunshine Residential Homes in December 2022 sought a 20% rate increase, to $179 per day. DCS denied it on Feb. 6, 2023, according to records provided by the department.
Three days later, Sunshine donated $100,000 to a dark-money fund Hobbs’ campaign created…
Only recently did the company begin contributing to political campaigns in Arizona.
Two six-figure donations from Sunshine to the Arizona Democratic Party were reported when Hobbs was running for governor, totaling $200,000 in September and October 2022.
[Sunshine’s CEO] and his wife personally donated nearly the maximum amount, $5,000 each, to Hobbs’ campaign.That’s not all the company would kick in. Another $200,000 was donated after Hobbs’ election, with half of that going directly to Hobbs’ inauguration fund through her dark money group.
[Sunshine’s Director of Programs] worked for DCS for a decade before joining Sunshine in 2022, according to his resume. Saifi donated $5,000 to Hobbs’ gubernatorial campaign the same day his boss did, state records show.——-
*The above are excerpts from an Arizona Republic article by Stacey Barchenger. Emphasis added.
Via Arizona State Senator Jake Hoffman:
Full article about Katie Hobbs’ pay-to-play corruption here:https://t.co/w6ZaveYn6g
— Jake Hoffman (@JakeHoffmanAZ) June 5, 2024
Full Article – AZCentral, 6/5/2024
Arizona’s child welfare agency has for years sought to move vulnerable kids out of group homes and into family-like settings.
To reduce the use of group homes, and combined with budget constraints, the Arizona Department of Child Safety has denied pay increases to home operators and cut loose 16 providers during the contract renewal process.
Yet even as the state cuts back, one group home provider with close ties to Gov. Katie Hobbs has benefited beyond all others.
DCS over the course of the past year approved what amounts to a nearly 60% increase in the rate that Sunshine Residential Homes Inc. charges to care for a child for a day, meaning potentially millions of dollars more going to the company at taxpayers’ expense.
No other standard group home provider — there are dozens — was approved for a rate increase during Hobbs’ tenure. None is paid as much per day per child as Sunshine, according to DCS and state contract records reviewed by The Arizona Republic.
The private company has made the case for more money, citing financial hardships amid the COVID-19 pandemic and inflation.
Meanwhile, it also has undertaken a new six-figure spending campaign benefiting Hobbs and Democratic politics in Arizona.
The company’s CEO, Simon Kottoor, was on Hobbs’ inaugural committee, and the governor praised the organization on the campaign trail. As DCS was redoing its contracts with group homes, Hobbs and her husband attended a private event at what appears to be the Paradise Valley mansion of Sunshine’s CEO.
The small gathering was to recognize the organization’s work, according to two news organizations that documented the event last month.