PHOENIX – Gov. Katie Hobbs has raised approximately $1.5 million in donations from businesses and other special interest groups to cover the costs of 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 say only 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.
It turns out to be a bit ironic when she uses APS funds and surplus funds from other donors to help her win the 2024 Democratic election.
The company donated more than $850,000 to the Republican Governors Association this election cycle. And that organization gave his over $9 million to the Yuma County Republican Central Committee. The Central Committee used the cash to run commercials to beat Hobbes.
APS has disclosed in public reports the company’s investment in the RGA, so whether the donation to the inaugural fund (2.5 times larger than any other) was a way to mend political ties with the new Democratic governor. I will not comment on
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 to APS asking for comment on the fact that Mr Hobbs has at least some of the funds remaining 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.
Also at the $100,000 level is the Realtors Issue Mobilization Committee. Provides grants to local Realtor Associations to advocate for public policy issues. The funds were cited by the Arizona Real Estate Association in his successful 2016 campaign to add measures to the state constitution to permanently ban taxation of 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 Hobbes or any other candidate for statewide office could contribute.
When the election just ended, Arizona law limited individual contributions to candidates statewide to $5,300. Even with the party, no party candidate could make him more than $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. have been pressured to publish
She later put the full list of names in a booklet handed out at the Jan. 5 event and listed them on her first website. this is the first time.
“Now that the inauguration is over, we are continuing the governor’s commitment to transparency by disclosing contributions to the inaugural fund and expenditures from the fund that helped cover the cost of the Jan. 5 inauguration. ,” said Nicole DeMont. The director of the inaugural committee said in a prepared statement.
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 raised outside funding for his second inauguration in 2019, including selling tickets for the event’s best seats. For example, a donation of $25,000 gave us 6 front seats, 3 parking tickets, 6 reception tickets, 3 photos and 6 inaugural pins.
However, what was left after paying the costs was put into a “protocol fund” that the governor could use for gifts to dignitaries, etc. Arizona law also requires the governor to explain each year how these funds were spent.
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, Janet Napolitano’s 2007 inauguration had nothing left, with only $150,000 from private funding to supplement the $60,000 budgeted in state funds.
Hobbes, by contrast, established her inaugural commission as a “social welfare organization.” That her 501(c)(4) category is the same as the Free Enterprise Club, which uses its status to promote selected candidates 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 charges 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.
But Ducey relented. He said his decision to endorse Rogers would ensure that Republicans would continue to control the Senate by a 16-to-14 margin, allowing 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.
