Hobbs Reshuffles Officials: Three Demoted, Salaries Intact

Arizona Governor Katie Hobbs has demoted three officials who previously led state agencies to deputy director positions. This decision follows a judge’s ruling that Hobbs’ attempt to designate them as “deputy executive directors” to circumvent a contentious confirmation process was illegal.

Despite being demoted, the officials will retain their previous salaries. David Lujan, Karen Peters, and Dana Allmond, who were stripped of their director roles last month, continue to earn the same pay as before, according to state records obtained by Capitol Media Services.

Lujan, formerly the head of the Department of Child Safety earning $220,000 annually, is now one of three deputies under interim director Ben Henderson. His department is responsible for handling child abuse cases and overseeing foster care services.

Peters, previously director of the Department of Environmental Quality with a salary of $224,000, has a diminished role and shares responsibilities with other deputies while reporting to Henderson as well.

Allmond, who was leading the Department of Veteran Services with an annual salary of $170,000, has also been relegated and is now serving under a new director, John Scott, who was her deputy.

The demoted trio was part of a larger group of agency heads who faced confirmation challenges after Senate Republicans established a committee to closely scrutinize Hobbs’ nominees. Of Hobbs’ 22 nominations, only six were confirmed, while several others were rejected or not voted on.

In September, Hobbs attempted to navigate around Senate opposition by appointing the directors as “deputy executive directors” but faced legal challenges from the Senate, asserting that she violated state law requiring confirmation.

Following a judge’s ruling against her actions, Hobbs reached an agreement with Senate President Warren Petersen to submit new nominations in January, though Lujan, Peters, and Allmond will not be included.

The Senate’s rigorous confirmation process has raised questions about the performance of the three officials. Petersen did not provide specific reasons for their anticipated rejection but highlighted concerns regarding agency operations.

Hoffman criticized the high salaries maintained by the demoted officials, labeling it an example of “pay-to-play” politics. He expressed that while Arizonans grapple with economic challenges, state officials are benefiting without corresponding responsibilities.

In defense, Hobbs’ spokesperson indicated that the administration aims to save taxpayer funds. He stressed the importance of the new deputies as vital contributors to agency operations amidst the state’s $1.8 billion budget deficit, a carryover from previous income tax cuts and educational funding initiatives.

Hobbs previously remarked that these demotions may not be permanent and that political dynamics could shift in the future.