Arizona Gov. Katie Hobbs accused of alleged 'pay-to-play' scheme involving group home operator

PHOENIX – Governor Katie Hobbs is under investigation over its ties to the operator of group homes for foster children. This follows reports that a company named Sunshine Residential Homes, Incorporated made six-figure donations to the governor's inauguration fund and the Arizona Democratic Party, just before getting a big rate hike. the state.

The case was first reported and detailed by the Arizona Republic, and the Arizona Attorney General's Office and the Maricopa County District Attorney's Office are looking into the matter.

Sunshine Residential Homes, Incorporated operates group homes for children in foster care and is the only one of dozens of operators to approve a rate increase during Governor Hobb's term. It's a company already on the radar screen of state lawmakers like Republican Sen. TJ Shope.

“We have an entity here at Sunshine Residential that is currently the subject of a lawsuit because a young man under the age of 10 died because he was not given insulin,” the senator said Shope, who represents the state's 16th legislative district. .

According to reports from the Arizona Republic, Sunshine Residential was denied a rate increase in December 2022, but donated $100,000 to Hobbs' inaugural campaign three days later.

The following year, the increase was approved: $234 per day. This was higher than the $169 average for other group homes.

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“We were talking about millions of dollars, and to know that few, if any, people saw rate increases that large was really troubling,” State Sen. Shope said.

Sunshine also donated $200,000 to the Arizona Democratic Party and the company's CEO was on Hobbs' inauguration committee.

State Sen. Shope says it's either a crazy coincidence or a paid game. It is now up to investigators to determine what happened.

“I have to believe that they, at the very least, view the allegations the same way I do, which is troubling at best and perhaps worse,” State Senator Shope said.

We contacted Sunshine Residential Homes on June 7, but someone at the company said no one was available to speak. Meanwhile, Governor Hobbs' office sent a statement that read:

“Just like previous investigations launched by radical and partisan lawmakers, the administration will be cleared of any wrongdoing. Governor Hobbs is a social worker who has stood up for Arizona families and children. It is outrageous to suggest that his administration would not do what is right for children in foster care.”