The State House Republican majority held a press conference on Tuesday to address concerns over what some are calling a pay-to-play scheme involving Democratic Governor Katie Hobbs. Republican officials said Hobbs is under investigation by the county attorney and attorney general for significantly increasing the rate paid to just one group home provider for foster children, Sunshine Residential Homes, after the provider made a $100,000 donation to her inauguration festivities. Hobbs informed the state legislature that the Department of Child Safety Congregate Care Program (DCSCCP) was going bankrupt only 19 days before the agency will run out of money, next Tuesday.
State House Speaker Steve Montenegro (R-Glendale) spoke first, calling it the “peak of irresponsibility.” “More bad news from Governor Katie Hobbs’ administration,” he said. “Just days ago, just days ago, we were informed by her by her budget office that the Department of Child Safety Congregate Care Program is bankrupt next week.”
He said it is “another Hobbs budget crisis, another Hobbs bankruptcy budget crisis. This trend is now impossible to ignore. The governor spends beyond her budget. She waits until it fails, and then she declares an emergency.” Montenegro said Hobbs announced in January that the program needed supplemental funding. However, she waited until March 5 to inform the state legislature that it was going bankrupt.
He went on, “This financial mismanagement threatens the most vulnerable children in our state. … So today, I’m directing the chairman of the Joint Legislative Budget Committee to call a meeting and to find the way to take care of these kids from the budget, from the governor’s own budget, so that they can keep the lights on in DCS.”
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