Tim Agne/KJZZ
A crowd at Governor Katie Hobbs’ inauguration at the Arizona State Capitol on January 5, 2023.
Arizona Governor Katie Hobbs has raised nearly $1.5 million from businesses and other special interest groups to help pay for her inauguration.
However, the cost of hosting the event was only about $207,000.
And that would leave her with plenty of money to spend on everything from gifts to high-level visits to trying to change control of the Arizona legislature to Democrats in 2024.
The report, obtained by Capitol Media Services, also shows that Arizona Public Service, the state’s largest utility, was the largest contributor with $250,000. APS had previously confirmed it provided funding, but declined to disclose how much the company provided. Instead, company spokesman Mike Phillipsen would only say that the company is “participating in Arizona’s business to support the governor’s inauguration.”
He also said the donation was “specifically directed to the 2023 Governor’s Inaugural Commission, which means it can be used to support all inaugural functions.”
But APS’ donations themselves exceeded the cost of the event, and since she established the first fund under a section of the Internal Revenue Code that allows the proceeds to be used for political purposes, what to do with the rest? It’s up to Hobbes.
If she uses APS funds (and surplus money from other donors) to help the Democratic Party get elected in 2024, it turns out to be a bit ironic. The company gave her more than $850,000 to the Republican Governors Association this election cycle. And that organization gave her more than $9 million to the Yuma County Republican Central Committee. The Central Committee used the cash to run commercials to beat Hobbes.
APS, as disclosed by the company’s investment in the RGA, commented on how the donation to the inaugural fund (2.5 times the largest of any other) was a way to mend political ties with the new Democratic governor. did not. public report.
In contrast, the Salt River Project contributed $25,000 to the inauguration. Hobbs said he received only $10,000 from Tucson Electric Power.
APS did not respond to multiple messages asking for comment about Hobbs remaining at least some of the funds available for political purposes.
APS was the largest donor, but there were also six-figure donors. This includes Blue Cross Blue Shield, which not only provides health insurance plans for state employees, but also lobbies on insurance legislation in the state capitol.
Tim Agne/KJZZ
Governor Katie Hobbs addresses a crowd during her inauguration at the Arizona State Capitol on January 5, 2023.
Also at the $100,000 level is the Realtors Issue Mobilization Committee. Provides grants to local Realtor Associations to advocate for public policy issues. That funding was cited by the Arizona Real Estate Association in his successful 2016 campaign to add to the state constitution a measure that would permanently ban taxes on services such as real estate services. Sunshine Residential Homes, which provides care for children who have been evicted from their homes by the State Child Safety Agency, also raised $100,000.
There was also a donation of $50,000 from William Perry, owner of William K. Perry Farms, which grows cotton and alfalfa.
The Union Pacific Corporation Fund for Effective Government Receives $26,450 for Tohono O’odham Nation, Southwest Highlands State Carpenters Regional Council, Home Builder Taylor Morrison, Arizona Dispensary Association Representing Marijuana Shops, Health System The Alliance of Arizona donated $25,000. Lobbying on behalf of major hospitals, Honeywell International PAC, and several individuals.
And then there’s a series of $10,000 and $5,000 donations, some smaller, one for $25.
The amount donated far exceeds what anyone could have given to Hobbes or any other candidate for statewide office. limited individual donations to $5,300. Not even a party could get a party candidate to get over her $80,300. Also, corporate contributions to candidates (of the kind used to fund inauguration ceremonies) are completely prohibited.
Hobbes wasn’t the only one to raise money for the inauguration.
Turns out there was another state inaugural fund that received about $85,000 in donations and pledges. The largest was $25,000 from food conglomerate PepsiCo, Hobbs spokeswoman Murphy Hebert said those dollars will be used to pay for event production.
Since Capitol Media Service first wrote earlier this month that it has not fully disclosed the names of all the individuals or companies paying for the celebration, Hobbes has offered no information about the sources of funding for the inaugural event. She then published the full list of names in a booklet handed out at the January 5th event and listed them on her first website. This is the first time there is a full account of how much each has contributed.
“Now that the inauguration is over, we are demonstrating the governor’s commitment to transparency by disclosing contributions to the inaugural fund and expenditures from the fund that helped cover the costs of the Jan. 5 inauguration. We do,” said Nicole DeMont. , the director of the inaugural committee said in a prepared statement.
Bridget Dowd/KJZZ
Inaugural attendees wave Arizona flags at the Capitol on January 5, 2023.
Aside from the amount raised, one of the reasons the surplus money is notable is that Mr. Hobbes can do different things with his inaugural money than his three previous predecessors. Republican Doug Ducey has raised outside funding, including selling tickets for the event’s best seats at his second inauguration in 2019. For example, a donation of $25,000 gave us 6 front seats, 3 parking tickets, 6 reception tickets, 3 photos and 6 inaugural pins.
But what was left over after paying the costs was put into a “protocol fund” that the governor could use for gifts to dignitaries, etc. Under Arizona law, the governor had to decide each year how those money was spent. You must explain how you received it.
In 2011, when Jan Brewer was sworn into office, she raised $200,000 from lobbying firms, business interests, and major state utilities. When the event didn’t cost much, the remaining funds were used to refurbish the governor’s office, especially to pay for new carpets. Also, at her 2007 inauguration of Janet Napolitano, she was only able to raise $150,000 from private funding to supplement her $60,000 budgeted in state funds, leaving nothing. .
Hobbes, by contrast, established her inaugural commission as a “social welfare organization.” This is a category under the Internal Revenue Code for non-profit organizations that allow at least a portion of their funds to be used for political purposes. That her 501(c)(4) category is the same as a free enterprise club that uses its status to promote its candidates of choice through independent spending, such as commercials.
And this would allow Hobbs to use at least some of what was left over after paying her expenses to run a similar independent spending campaign in 2024, bringing Congress closer to her liking.
In 2020, the people of Arizona saw what a governor with available cash could do. Ducey was ruling the Arizonans that year due to his strong leadership. There are some differences. Ducey raised the cash from personal donations, not from his inauguration. But he used his available dollars to push for Republican legislators in the 2020 election. Most notably, the governor directed spending over $170,000 to support Wendy Rogers in the state Senate general election, and another $290,000 in independent spending against her nemesis Felicia French. Rogers won.
Ducey was asked about these costs after Rogers’ election was embroiled in controversy involving ties to white supremacist groups. Accused of “publicly publishing and promoting social media and video messages,” the resolution cited her speeches against white supremacist groups. His decision to endorse ensured that Republicans continued to dominate the Senate by a 16-to-14 margin and allowed him to advance his political agenda.
It’s not clear who attended the $150 a head inaugural ball on Saturday after Hobbs took office. A spokesman said it had nothing to do with the inaugural committee and the funds raised would go to the Arizona Democratic Party.
