PHOENIX — “Katie Hobbs is under criminal investigation.”
On the campaign trail and in digital ads, U.S. Rep. Andy Biggs points to an investigation into a rate hike for a state contractor that donated to the governor and the Arizona Democratic Party.
“Our opponent, Katie Hobbs, who by the way, is under criminal investigation for pay-for-play,” he said at a recent rally in Goodyear. “Now, I don’t know why I’m saying that. I think it’s just that maybe everyone needs to know that.”
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Attorney General Kris Mayes, who is looking into the allegations, recently told reporters she expects to make an announcement in the case before the election. The investigation was announced two years ago.
Sunshine Residential, a group home operator that has a contract with the Department of Child Safety, received a 30% rate increase in 2023. The company donated $100,000 to Hobbs’ inaugural fund and also contributed $200,000 to the Arizona Democratic Party.
“The department acted in the best interest of foster kids in Arizona, and that's all I have to say on that issue,” Hobbs said earlier this month.
The governor and DCS have both said Hobbs did not weigh in on the rate increase.
“I'm looking forward to this investigation being completed, and I know that my office was not involved,” Hobbs said.
A few months before Mayes launched her investigation, ABC15 Investigators reported on the death of 9-year-old Jakob Blodgett, who died in 2022 after Sunshine employees allegedly allowed him to refuse his insulin shot.
Her campaign said in a statement slamming the Biggs ad that DCS first rejected the rate hike and then approved it after “agency staff determined that losing Sunshine’s capacity would jeopardize hundreds of foster care beds, leading to the separation of siblings.”
Mayes has asked Hobbs to sit for an interview.
“What I would say is, we’re going to get the information that we need,” she said.
Hobbs has declined to comment on Mayes’ remarks other than to say she is in contact with the Attorney General’s Office.
“I am in communication with her office about her request,” she said.
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