Three Demoted State Directors Continue to Cash in on Full Salaries

PHOENIX — In a significant administrative reshuffle, Arizona Governor Katie Hobbs has demoted three officials from their agency leadership roles to deputy director positions. This decision follows a legal ruling that deemed her prior appointment of these officials as “deputy executive directors” to circumvent Senate confirmation procedures illegal.

Despite the demotions, the financial implications appear minimal for the former agency heads. Records indicate that David Lujan, Karen Peters, and Dana Allmond will maintain their previous salaries even as they assume reduced roles within the state government.

Allmond now serves as the deputy director of the Department of Veteran Services under the leadership of John Scott, who was previously her deputy. In contrast, Lujan and Peters share responsibilities with additional deputies in their departments, reporting to an interim director.

Lujan, previously the head of the Department of Child Safety with an annual salary of $220,000, now shares duties with two other deputies under the temporary supervision of Ben Henderson, the Director of Operations. Both Peters and Lujan suffered similar fates when they failed to receive Senate confirmation for their roles prior to the legislative session’s close.

Notably, the Senate’s lack of action on Hobbs’ nominations has broadly affected her appointments. Only six of the 22 agency director nominees received approval during her first year in office.

In an attempt to navigate around Senate roadblocks, Hobbs named 13 unconfirmed agency leaders as “deputy executive directors” in September 2023, a move that ultimately drew legal challenges from the Senate. The court ruled against Hobbs, stating that her strategy violated state law requiring Senate consent for top agency officials.

Recently, Hobbs reached an agreement with Republican Senate President Warren Petersen to forward the names of 19 nominees, although Lujan, Peters, and Allmond were excluded, likely due to anticipated rejection. The shift in strategy underscores the growing divide between the governor’s office and the Republican-controlled Senate.

Hobbs’ oversight has emboldened the Senate to scrutinize her nominees more intensely. Petersen implemented a new committee structure aimed at increasing checks on Hobbs’ appointments, leading to a more partisan atmosphere in the confirmation process.

Senator Jake Hoffman, a pivotal figure in these proceedings, labeled the retention of former salaries for the demoted officials as indicative of “Democrats’ corrupt, pay-to-play style of politics.” He criticized Hobbs for prioritizing her allies’ financial benefits over the needs of everyday Arizonans.

In defense of the decisions, Hobbs’ spokesman emphasized the necessity of retaining experienced personnel during this transitional period while also addressing the state’s substantial budget deficit. “The new deputy directors are valued contributors to agency operations,” he reaffirmed.

Senator David Farnsworth voiced concerns regarding the impact of agency policies on child welfare, citing increasing reports of children in dangerous situations after involvement with state agencies. Additionally, Hoffman has raised questions about the state’s environmental strategies under Peters, although she did not receive a hearing for her responses amidst mounting tensions.

As the political landscape unfolds, Hobbs hinted that the demotions of Lujan, Peters, and Allmond might not be permanent, suggesting potential reinstatement could occur contingent on the outcome of forthcoming elections.