In a recent turn of events, House Speaker Steve Montenegro has formed an advisory team to delve into allegations of pay-to-play within Governor Katie Hobbs’ Department of Child Safety (DCS). This announcement came on the heels of a report by The Arizona Republic, suggesting that Sunshine Residential Homes may have received preferential treatment following sizable donations to the governor and the state Democratic Party.
The crux of the issue lies with a 30-percent rate increase granted to Sunshine Residential Homes, seemingly after they contributed over $400,000. Such an increase is reported to be in the millions, whereas requests from other providers for similar increases were denied. The Republic unveiled communications within the staff that discussed minimizing public awareness of this increase and acknowledged Sunshine’s political connections. All this is backdroped by DCS facing significant budget constraints and a mandate to decrease dependency on group homes.
Montenegro's advisory team is set to spearhead a legislative investigation aimed at unveiling the facts, synchronizing with other law-enforcement probes, and proposing legislative actions to eradicate political bias in state contracting. The team is composed of prominent figures, including Rep. Selina Bliss, Chair of the House Health and Human Services Committee; Rep. David Livingston; Rep. Matt Gress; Rep. Quang Nguyen, Chair of the House Judiciary Committee; and Speaker Pro Tempore Neal Carter.
The House's move follows precedents of probing purported misconduct linked to Sunshine Residential Homes and the Hobbs administration. As early as June 2024, Representative Matt Gress expressed concerns and urged an investigation into the company's financial dealings with Hobbs' office. To avoid conflicts of interest, Representative David Livingston has also called for Attorney General Kris Mayes to recuse herself, citing a history of defending Governor Hobbs and her party.
According to the Arizona House of Representatives, Montenegro, voicing the urgency of the situation, asserted, "The facts reported raise serious questions the House cannot ignore." He continued, "Arizona’s children, families, and taxpayers deserve a system that is clean, fair, and focused on care, not political access or donations." Montenegro's direction to all pertinent agencies and contractors is to preserve records and fully cooperate with the legislative efforts, ensuring a comprehensive assessment of the allegations at hand.
