Attorney General Kris Mayes says her investigators have asked to interview Gov. Katie Hobbs as they finish a nearly two-year investigation of the governor's ties to a state contractor that got a special pay hike under her administration.
But it is unclear if Hobbs will agree to that interview.
Hobbs
"As to whether the governor will sit for an interview: the Governor's Office will decline to comment," Hobbs' spokesperson Christian Slater told The Arizona Republic in an email, adding that "not once has there been any evidence that the Governor was involved in the decisions" about the contract with Sunshine Residential Homes.
He also cited past Republic reporting in which Hobbs' former Department of Child Safety director denied the governor was involved.
"We've been in contact with the Attorney General's Office about this request and we are looking forward to this wrapping up and confirming that DCS acted in the best interest of Arizona's foster children," Slater said.
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Mayes confirmed on April 24 that her investigators wanted to interview the governor and had been trying to do so as part of their criminal investigation.
“Our investigators are prepared to do that interview," Mayes said. "I think that's appropriate to do in an investigation like this to make sure that it's thorough and complete."
The investigation could wrap up this summer, Mayes said.
Mayes
Sunshine Residential Homes is one of the largest providers of group homes for children who are in the care of the Department of Child Safety, the state's child welfare agency. It has worked for the state for decades.
But in 2022 and 2023, Sunshine Residential and its leaders began making sizeable political contributions for the first time. Its gifts of over $400,000 in those years went to the Arizona Democratic Party, which helped fund Hobbs' election as governor in 2022, and to Hobbs' inaugural fund.
In 2023, Hobbs' first year as governor, Sunshine Residential requested and received a special pay increase from the Department of Child Safety, though the department had denied similar requests from Sunshine Residential and other group home operators as part of a mandate to reduce the use of group homes.
Internal DCS records showed state staff considered the company's support of Hobbs before recommending the higher pay for Sunshine Residential, which amounted to about a $4 million increase a year.
But after Sunshine Residential leadership came to then-director David Lujan, in May 2023, making a case of financial hardship and threatening to go work for the better-paying federal government, Lujan approved the request. That was despite the state having financial records from Sunshine Residential that cast doubt on its claim of a deficit.
During a routine state contracting renewal period about a year later, most group home providers received a pay increase, making Sunshine Residential the highest-paid.
Hobbs' office later confirmed the governor and her campaign manager had dined with Sunshine Residential's CEO and other leadership as the contract was being finalized, but Hobbs has maintained she never influenced the contracting decision.
The contract and Hobbs' ties to the major donor are being scrutinized in two investigations requested by Republican lawmakers in 2024 following the Republic's reporting.
Mayes' case is ongoing, as is an inquiry led by Republican Maricopa County Attorney Rachel Mitchell with the state Auditor General. Arizona House Republicans also began an investigation this year to identify if any policy changes were needed. Tommy McKone, a spokesperson for Sunshine Residential, said in a statement the company has "fully cooperated with and responded to all requests" in those investigations.
The outcome of those inquiries could throw a wrench into the election year ahead and have political consequences for Hobbs, but also Mayes. Both Democrats are on the ballot seeking second terms this year and are top targets for Republicans hoping to flip their seats.
Hobbs' ties to the contractor have been repeatedly highlighted by the GOP frontrunner hoping to challenge her in November, Rep. Andy Biggs. And Arizona House Republicans have had Mayes under their microscope, already once trying but failing to start impeachment proceedings against her in 2024. The outcome of her investigation is likely to prompt a new round of scrutiny.

