Arizona Attorney General Kris Mayes faces a July 20 deadline to respond to the Goldwater Institute’s demand for action regarding a series of allegations that the City of Phoenix illegally distributed at least $28.5 million in taxpayer funds to over 100 private organizations with minimal oversight, according to a recent letter from the institute. If Mayes does not act by the deadline, the Goldwater Institute will gain the statutory right to file a lawsuit to recover the funds, which were allegedly given to groups like Phoenix Pride Inc. and Latino Pride Alliance under questionable labels such as “Sponsorships” and “Grants and Subsidies.”
“This effectively turns large portions of the city’s budget into a patchwork of slush funds that special interests can access in the sole discretion of a single city employee,” GI said in an article about the subsidies.
GI, which said the city had no lawful authority to issue the handouts, said the giveaways were under “questionable labels” like “Sponsorships,” “Grants and Subsidies,” “Emerg[ency] Assist[ance],” or “Miscellaneous.” They went to groups like Phoenix Pride Inc. and Latino Pride Alliance.
GI said the city tries to justify the spending by citing “an outdated ordinance that allows the city manager to settle claims against the city — an insufficient justification for these discretionary giveaways.” GI said the City claims this authorizes department directors to hand out up to $32,000 to any organization. Phoenix at first claimed they did not keep a record of the giveaways.
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