Governor Katie Hobbs wants the credit for financial relief again — even if that means bending a few laws to get it.
Hobbs is requiring credit be given to her on all promotional materials produced through the beneficiary of a $30 million contract paying off up to $1.5 to $2 billion of medical debt for up to one million anonymous Arizonans: the nonprofit RIP Medical Debt.
The contract, made possible by federal funds from the American Rescue Plan Act, has a number of provisions that ensure ample PR material for the unpopular governor.
In return for plastering Hobbs’ name, logos, and insignia on all marketing materials while absolving medical debts, RIP Medical Debt can claim up to 10 percent of the $30 million for itself, or $3 million, for conducting its work.
“It looks like the leaders of RIP could pay off a few people’s debt all by themselves based on their salaries,” a director of an Arizona nonprofit quipped after reviewing the organization’s 990s.
Hobbs’ personal PR benefit requirement strikes a similar parallel to the one put forth by President Joe Biden’s team for any infrastructure projects financed by the Bipartisan Infrastructure Law or Inflation Reduction Act. The EPA requires beneficiaries of those federal funds to put up a sign crediting Biden in front of all construction sites.
One sign discovered in Milwaukee, Wisconsin, for example, reads: “Project Funded by President Joe Biden’s Inflation Reduction Act; Investing in America.”
Couldn't believe this, but this is actually a requirement mandated by the Biden EPA.
In order to access these public funds, you have to basically put up the equivalent of a Biden campaign sign at the site.
You can't simply say the funding came from the IRA or the… https://t.co/XIVbo4jmDE pic.twitter.com/q4dzolkMwn
— Zach Parkinson (@AZachParkinson) March 14, 2024
Critics of the arrangement questioned the ethical implications of a governor using taxpayer funding for PR material.
Democrat @KatieHobbs is doling out $30M taxpayer funding to a special interest group — and then sending letters to beneficiaries letting them know that she personally erased their medical debt.
Unbelievably improper, bordering on illegal. #AZLeg #AZGovhttps://t.co/cZYirwE46O pic.twitter.com/U1OStU5EIn
— Brian Anderson (@AZBrianAnderson) March 14, 2024
Prior to the $30 million deal, RIP Medical Debt had absolved debt in Arizona through donations. One project raised over $71,500, which the nonprofit reported would cover over $7.1 million in medical debt (they estimate that every donated dollar covers $100 in medical debt, since their buyers mimic other debt buyer models in purchasing medical debt for pennies on the dollar).
The medical debt arrangement resembles another, illegal one put forth by the governor last year concerning the $260 million Arizona Families Tax Rebate Program. Even though the budget containing the rebate explicitly prohibited the governor from issuing any letters relating to the rebate.
On top of the letter, Hobbs sent out a press release and video.
In response, leaders of both houses sent a cease and desist letter to the Arizona Department of Revenue. Hobbs quickly complied with the legal threat and edited her letter.
Those who qualify for debt relief through the RIP Medical Debt arrangement are those who earn less than 400 percent the federal poverty level, and whose debts are five percent or more of their annual income.
A RIP Medical Debt representative, board member and Scottsdale resident Jeff Smedsrud, claimed during last week’s press conference — which started off with no sound, and then had muted sound interrupted at times by the sounds of keyboard typing and staffer whispers — that the nonprofit didn’t have criteria for determining beneficiaries.
“We have no criteria other than we buy the debt from hospitals, collectors, other sources, providers,” said Smedsrud.
The medical debt program will run over the next two years.
Certified POS!
Incompetent, woke monster.
The Hobbit is trying to buy, what? …respectability?