Response to Alleged Misuse of Arizona Taxpayer Funds
Republican lawmakers have reacted to serious allegations involving the misuse of taxpayer funds in Santa Cruz County, Arizona.
Last month, Arizona Speaker Matt Gress, who heads the Joint Legislative Audit Committee (JLAC), addressed an investigation report from the Arizona Auditor’s Office that pointed to significant financial misconduct by a former county treasurer. The potential misappropriation of funds could amount to nearly $40 million.
Earlier this year, former Santa Cruz County Treasurer Elizabeth “Liz” Guffer resigned shortly after Chase Bank alerted authorities to potential financial fraud. Investigations are currently underway by various law enforcement agencies regarding activities over the past decade.
In his statement, Gress remarked, “The actions highlighted in the Auditor General’s report are profoundly troubling and represent a serious breach of public trust. This may be among the most egregious cases of financial misconduct within county history in Arizona, emphasizing the necessity for greater scrutiny and accountability in managing public resources.” He also noted the Auditor General’s reluctance to provide more information, which underscores the gravity of the situation and calls for increased transparency.
On August 26, Arizona Auditor Lindsey Perry sent the report to Governor Katie Hobbs, Attorney General Chris Mays, members of the Arizona Legislature, the Santa Cruz Board of Supervisors, and U.S. Attorneys from the Department of Justice. Perry’s report indicated that from March 2014 to March 2024, accounts received $39,472,100, along with multiple false investment statements and misleading information to county agencies and financial consultants.
The report included nine recommendations for county officials and two directed at the Arizona Legislature.
Gress expressed his intent to address this situation in the next legislative session, aiming to prevent future occurrences. He stated, “We plan to propose legislation that would expand the powers of the Arizona Auditor General, granting independent access to financial institution records. This will equip auditors with better tools to uncover financial misconduct, even if internal controls fail. We want to ensure that public funds are managed with integrity.”
The first-term lawmaker acknowledged the efforts of the Auditor General’s Office and law enforcement in addressing these issues. He emphasized the importance of implementing the nine recommendations made by the Auditor Chief to create stronger safeguards against abuse, ensuring that taxpayer money is protected from fraud and corruption.
