Attorney General Kris Mayes says her two‑year probe into Gov. Katie Hobbs’ alleged pay‑to‑play contracting will wrap before November. Hobbs, for her part, still will not commit to sit for an interview with investigators. That is according to Capitol Media Services reporting published by the Arizona Capitol Times.
The consequence is obvious. A co‑partisan attorney general promising a pre‑election finish on an inquiry tied to six‑figure donations and rapid contract hikes will frame the closing stretch of Arizona’s governor’s race. Voters will get either exoneration or more questions, and the clock is now part of the story.
Capitol Media Services reported Mayes asked the governor four months ago to answer questions about the Department of Child Safety’s payments to Sunshine Residential. Hobbs’ office said then it was in contact and “looking forward to this wrapping up.” On Tuesday, Hobbs said she looks forward to the conclusion and repeated that she was not involved in DCS decisions, but she would not commit to an interview.
The money trail that sparked the scrutiny is not in dispute, per the same reporting. Sunshine gave $100,000 to Hobbs’ 2023 inaugural committee, second only to APS at $250,000, and raised nearly $1.7 million for an event the office said cost $207,000. Under the law at the time, leftover inaugural funds could be used for political purposes. Sunshine also gave $200,000 to the Arizona Democratic Party before the 2022 election and another $100,000 in 2023.
On contracting, Capitol Media Services reported Sunshine asked DCS for more money in early 2023. Matthew Stewart, Hobbs’ first nominee to lead the agency, rejected the request before his nomination was withdrawn when Senate confirmation faltered. By May 2023, with former lawmaker David Lujan in charge, DCS raised the per‑bed rate from $140 to $195, a 30 percent increase. DCS spokesman Darren DaRonco said Sunshine warned it would shift beds to federal placements that paid $225, which would have reduced capacity for Arizona foster kids. A new contract later boosted Sunshine’s rate to $234. The Arizona Republic, cited in the Capitol Media Services piece, reported Hobbs and her campaign manager dined with Sunshine leadership as the deal was being finalized. Hobbs’ office has maintained she did not influence the contracting.
Mayes opened her probe in June 2024. This week she said “you cannot blow off the Attorney General’s Office, full stop,” and signaled she would proceed with or without the governor’s cooperation. “We are going to get the information that we need,” she said, adding that an announcement would come when there is a result and that the investigation is near its end.
Hobbs said Tuesday she is confident Mayes’ inquiry will confirm DCS acted in the best interests of foster children and that she was not involved in rate decisions, according to Capitol Media Services.
