Mitchell, Kolodin feud over firm that processes county ballots

Posted on by Yellow Sheet Report Staff

Maricopa County Attorney Rachel Mitchell accused Kolodin of “spreading falsehoods” about her office killing a proposed deal between the county and Runbeck Election Services, the company that prints and processes ballots in the county. In a Thursday post on X, Mitchell wrote she called Kolodin to clarify the situation, but he has “decided to persist in spreading false information.” In March, Kolodin and Rogers drafted a memorandum of understanding with Runbeck, which included some reforms of Runbeck services aimed to strengthen election integrity, including having bipartisan observers at Runbeck and allowing the House to audit the software licensed signature verification and ballot duplication. Mitchell wrote in her post that Kolodin attempted to negotiate a separate contract that would change the terms of current contracts between the Maricopa County Board of Supervisors and Runbeck, but county supervisors chose not to accept those changes on March 11. Mitchell accused Kolodin of misrepresenting the situation by claiming her office rejected the change in terms, but the attorney’s office doesn’t have the authority to accept or reject contract terms. That power lies with the board of supervisors and the attorney’s office only being able to advise supervisors. “Rep. Kolodin’s misinformation campaign is false, irresponsible, and incendiary,” Mitchell wrote. Kolodin didn’t respond to a request for comment by Yellow Sheet Report’s deadline Friday. “The first half of the first sentence is evergreen,” Maricopa County Recorder Stephen Richer wrote in response to Mitchell’s post, which reads “(Kolodin) is spreading falsehoods.” Kolodin did comment to Arizona Daily Independent on Thursday and said Maricopa County Attorney Tom Liddy has influenced the board of supervisors with election policy.

Agencies ask governor’s office for money after cuts came to many

Posted on by Yellow Sheet Report Staff

State agencies have submitted their budget requests to the Governor’s Office of Strategic Planning and Budgeting, and most are jockeying for more money in FY 2026 despite cuts made to settle the state’s budget deficit in FY 2024 and 2025. Not all agency budget requests are available online yet, and OSPB did not respond to our reporter’s question about when they would be available. But some of the major agencies, like the Dept. of Public Safety and the Dept. of Environmental Quality have posted requests online, outlining the funding they’ll need to keep their agencies successful in the coming years. ADEQ submitted a detailed list of funding asks that included 15 items needing budgetary attention. Many of the agency’s budgetary limitations stem from fee-based programs that are not generating enough revenue to stay afloat and affecting ADEQ’s ability to comply with federal laws like the Clean Water Act. The agency is asking for over $28 million more in appropriated funds in FY 2026 to address issues like water contamination, air emissions, abandoned mines and hazardous waste. Meanwhile, DPS is asking for over $53 million more in appropriated funds to help finance state Highway Patrol projects and salaries and uniforms for officers. The agency is eliminating $770 million in funding for public safety equipment after lawmakers passed the most recent state budget. Other agencies are also likely to request more funding for FY 2026, but whether or not the state will have the money to grant those requests remains to be seen.

Mayes to pay more than $70,000 for failed opioid settlement lawsuit

Posted on by Yellow Sheet Report Staff

Mayes agreed to pay more than $71,500 in attorneys fees to Petersen, Toma, Hobbs, and the Dept. of Administration following her unsuccessful attempt to halt the allocation of $115 million in opioid settlement dollars to the Dept. of Corrections in the FY2025 budget. Petersen and Toma are set to receive $41,400, Hobbs is entitled to $16,172 and the Dept. of Administration is due $13,989. After lawmakers passed the FY2025 budget and Hobbs’ signed it, Mayes was supposed to transfer the first $70 million from the opioid settlement fund to the Dept.. of Corrections for treatment of those impacted by the opioid crisis. If Mayes failed to do so, the job would then fall to the Dept. of Administration. But instead of moving the money, Mayes took to the Superior Court and filed suit against Dept. of Administration for a block on the department’s transfer of the funds, claiming an illegal payment of public monies. The court temporarily granted Mayes’ request and put a temporary hold in place. Petersen, Toma and Hobbs then jointly intervened. The governor and legislative leaders asked the court to dissolve the temporary hold on the funds and claimed, per statute, the funds had to be directed “with the advice and consent of the Arizona Legislature.” In line with the legislature’s argument, Judge John Hannah, a Napolitano appointee, dissolved the order and found the legislature indeed had the latitude to allocate funds from the opioid settlement. Mayes voluntarily dismissed the suit, and Hannah granted a request for attorney fees. In a stipulated filing, Mayes agreed to pay $71,561 in total, and the parties asked the court to enter final judgment.

Opioid settlement spending still under AG scrutiny 

Posted on by Yellow Sheet Report Staff

Though Mayes, Hobbs and the legislature sorted out attorneys’ fees, a spending report from the Dept. of Corrections could mean more legal fights to come. The AG’s office is currently reviewing a report showing the Dept. of Corrections has spent $40 million on hepatitis C treatment, compared to about $3 million treating substance use disorders and $9 million on medication-assisted treatment for opioid use disorder. “In the Attorney General’s estimation, it is hard to claim Hepatitis C treatment is a proper use of opioid settlement funds and does not concede that it is,” AG spokesman Richie Taylor said. “Even assuming it does fit an approved purpose, the amount of funding spent on this issue is also of great concern to the Attorney General. Funding the medical treatment of inmates, including Hepatitis C treatment, is already the responsibility of the state and not a good use of limited opioid settlement funds. The Attorney General believes this amount of opioid funding would be much better spent saving lives in communities instead of backfilling the budget deficit of a single state agency.” Taylor noted no decision has been made on whether Mayes plans to pursue further legal action, but Mayes told Howie Fischer of Capitol Media Services that she’s looking at “all the options.” Christian Slater, spokesman for Hobbs, said Mayes was “flat out wrong on the law,” in a statement. He continued, “On her very own website, she indicates the funds may be used for opioid treatment at ADCRR,” noting the opioid settlement list of approved purchases includes addressing the needs of those involved in the criminal justice system, which could include condition of substance use disorder conditions like hepatitis C. “Moreover, she’s threatening to block substance abuse treatment for Arizonans who have been devastated by the opioid epidemic. This is important funding that will reduce recidivism, make Arizona communities safer, help break the cycle of fentanyl addiction, and lower costs for Arizona taxpayers,” Slater said. “The governor will continue fighting to stop the flow of fentanyl into our communities, deliver treatment for everyday Arizonans, and bring an end to the opioid epidemic.”

Lawmakers ask ACC to reconsider UniSource Energy rate hike

Posted on by Yellow Sheet Report Staff

Biasiucci, Gillette and Borrelli are asking Corporation Commission Chair Jim O’Connor to reconsider his decision to deny a reconsideration of a UniSource Energy rate case after Commissioner Lea Marquez Peterson said she would like to change her vote. The rate case was decided in June, but Marquez Peterson said she received feedback from consumers in Mohave County that they were experiencing “rate shock” as a result of the new utility rates and the summer heat. In an Aug. 26 letter to O’Connor, Marquez Peterson asked that the commission consider a seasonal electricity rate to lessen the impact on consumers. In a letter submitted Sept. 5, O’Connor denied the request, saying it would “upend” the work of the commission to “stabilize our regulatory environment.” O’Connor noted that UniSource is reaching out to consumers to discuss solutions such as budget billing, which could spread the cost of electricity over the year. Biasiucci, Gillette and Borrelli wrote in a Sept. 6 letter that they supported Marquez Peterson’s request to consider seasonal rates. “While we appreciate the Commission’s effort to stabilize the regulatory environment in Arizona, we also believe the Commission must consider the impacts to residents who are struggling under the new rates, including those who are on fixed incomes and choosing between essential expenses,” the letter said. “We are confident UNS Electric will take the necessary steps to ensure residents are provided information, but we are concerned consumer outreach may not be enough.” The lawmakers, who represent parts of Mohave County, also requested a meeting with ACC commissioners, staff and UniSource to discuss the issue. O’Connor did not immediately respond to a request for comment on the matter.

‘Remains to be seen’: Braun noncommittal on more policy details

Posted on by Tom Davies

Republican gubernatorial candidate Mike Braun isn’t committing to detailed policy proposals ahead of the election, although he says he will be heavily involved with the Legislature if he becomes governor.

Braun met with reporters for about a half-hour Friday at the Indiana Republican Party headquarters, a little more than eight weeks ahead of Election Day.

Here are some key points from the question-and-answer period:

Uncertainty on more policy specifics

Braun avoided policy specifics throughout the primary campaign and has since only detailed a proposal for property tax structure changes.

Asked by State Affairs whether he would release more details on his policy plans, Braun replied, “Remains to be seen.”

Democratic candidate Jennifer McCormick has also released a property tax proposal, along with plans on education and ethics reform.

Braun criticized the value of McCormick’s proposals while remaining vague about releasing details of his agenda.

“I will do some of that on the particular issues, but remember, when you do it, you’ve still got to make sure that it’s going to pass a legislature,” Braun said. “I think whatever Jennifer puts out there, it’s going to be unlikely to pass the legislative muster, a lot of the stuff she’s detailing.”

McCormick’s campaign didn’t immediately reply to a request from State Affairs for comment.

Active in dealing with Legislature

Braun pointed to his three years in the Indiana House before his successful 2018 U.S. Senate campaign as helping him navigate the legislative process.

He suggested he would be more of an active participant with lawmakers in the mold of Mitch Daniels as governor during the 2005 through 2012 legislative sessions than Mike Pence or Eric Holcomb while they were in office.

“What you’re going to find is that you’re going to be able to get a hold of me as someone that’s going to be here during the week,” Braun said. “The other thing I’m going to do that I think, probably, Mitch did better, maybe, than Pence and Holcomb is I’m going to communicate until they’re tired of hearing me with the Legislature, both sides of the aisle.”

Ethics policy reforms

McCormick released Thursday an ethics plan that seeks to improve sexual harassment reporting throughout all levels of state government. That proposal follows news accounts of three women who claim they were harassed by Thomas Cook, a former chief of staff to Indianapolis Democratic Mayor Joe Hogsett. 

Braun said he believed McCormick “wanted to separate herself” from Hogsett by releasing the proposal but also said “it probably makes sense.”

“I think that’s kind of sweet irony that Jennifer had to put that out, juxtaposed to a Democratic administration,” Braun said. “I haven’t read her ethics proposal, but I think, with what did occur, that probably something needs to be done. So in general, I’d be for that. I don’t know what’s particularly in there, but I can’t imagine that would be too off base in terms of how you’d approach that issue.”

State agencies in his sights

Braun said he planned on taking close looks at the operations of several state agencies, particularly the Family and Social Services Administration and the Department of Child Services. 

The Indiana Department of Transportation is the source of many public complaints, Braun said, but he expressed less concern.

“That’s probably the one [department] people complain the most about, and then it’s hypocritical,” Braun said. “They want more roads and bridges and they don’t like all the congestion and traffic issues associated with it. So that’s human nature.” 

He said he aimed to find ways to cut operating costs for state agencies. 

Asked what he would do differently from what Republican governors have done over the past 20 years, Braun cited his experience of building his Jasper-based company, Meyer Distributing, into a national business.

“That’s the thing, I think, I bring to this race that no past governor really has been able to bring,” Braun said.

Overseas travel as governor

Holcomb just wrapped up his 25th international trip as governor, which included stops in Slovakia, Italy and Ukraine.

Holcomb cited those trips as important to building relationships to attract more investment in the state.

Braun said he wants to maintain a flow of foreign investment but without the frequent travel.

“I can tell you that I won’t be spending that much time overseas,” he said. “That’s not something you have to do as governor. I’ll do it when it’s essential. Won’t probably make it a common feature.”

Only weekdays in Indianapolis?

Braun often mentions his desire to be in his southern Indiana hometown of Jasper. 

Asked whether he would move into the Governor’s Residence on the northside of Indianapolis if he wins election, Braun said yes.

“It’ll be a welcome relief not to be burning 10 to 12 hours a week to head out to D.C.,” Braun said of his travels from Jasper to Washington for U.S. Senate business.

Although Braun’s sister lives in the Indianapolis suburb of Zionsville, he wouldn’t reside in the capital city fulltime: “When it comes the weekend, I’m going to scoot my rear end back south.”

Tom Davies is a Statehouse reporter for State Affairs Pro Indiana. Reach him at [email protected] or on X at @TomDaviesIND.

Holcomb’s press secretary leaving in latest administration turnover

Posted on by Tom Davies

Gov. Eric Holcomb’s press secretary, Erin Murphy, is joining the exodus from the administration amid the governor’s final months in office.

Murphy said in an email to reporters that Friday was her final day in the position she had held since June 2021. 

Lauren Houck, who has been Holcomb’s communications director, will take over handling news media matters.

Houck told State Affairs she will add that work to her role coordinating communications from executive branch agencies and other external communications from the governor’s office. 

Houck has worked in the governor’s office since 2022, after having communications roles with the Indiana Housing and Community Development Authority and the state Attorney General’s Office under Curtis Hill and Todd Rokita.

She came to Indiana after working as deputy press secretary to Michigan Attorney General Bill Schuette. 

Murphy accompanied Holcomb on his European trip that had stops in Slovakia and Italy, then ended Thursday with an unannounced visit to Ukraine.

She did not specify her future plans while saying in her message to reporters: “You will hear from me in some capacity or another when I start my next venture.”

Murphy didn’t immediately reply Friday to an email message seeking additional information.

Before becoming Holcomb’s press secretary, Murphy was communications director for the Indiana Department of Child Services. She previously was communications director for the city of Westfield and was a news reporter and anchor including at WTHI-TV in Terre Haute and WISH-TV in Indianapolis.

Tom Davies is a Statehouse reporter for State Affairs Pro Indiana. Reach him at [email protected] or on X at @TomDaviesIND.

Health officials dub Indiana’s 988 suicide and crisis line a success 2 years in

Posted on by Jarred Meeks

Ahead of the first national 988 Day on Sept. 8, Indiana health officials touted the success of the state’s suicide and crisis lifeline, citing increased calls and an improved response reach.

Because of Indiana’s free, confidential 988 Suicide & Crisis Lifeline, more Hoosiers are receiving help during suicide, mental health and substance use crises, health officials said during a Friday news conference.

Indiana’s five 988 Response Centers received more than 7,700 calls in July, up from 3,700 during the same month two years ago. Health officials said the data indicates more Hoosiers are aware of the line and using it. In addition, the centers’ in-state answer rate has climbed to 92%, up from 77% in July 2022, when the line launched in Indiana, according to the Indiana Family and Social Services Administration.

Mobile crisis teams that respond to Hoosiers who contact the line can now reach more than two-thirds of the state’s 92 counties, health officials said, meaning the teams are within 60 minutes of urban areas and within 90 minutes of rural areas. The remaining response gap could be closed through additional workforce, they said.

“We’re on this pretty exponential growth curve on getting the workforce to catch up with the need,” Lindsay Potts, director of system transformation at the Indiana Division of Mental Health and Addiction, said.

And 17 crisis receiving and stabilization service providers — the third pillar of the lifeline’s structure — are open to the public, with two more locations expected to open in the coming months, according to health officials.

Potts said the state is exploring ways to ensure consistent responses through the 988 system while “many people are socialized to call 911 when they need help” for behavioral health crises.

In June, Indiana was one of 10 additional states selected to participate in the federal Certified Community Behavioral Health Clinic Medicaid Demonstration Program, through which anyone can receive care for mental health or addiction regardless of where they live, their insurance status or their ability to pay.

The Certified Community Behavioral Health Clinics, once fully implemented, will provide round-the-clock care through mobile crisis teams and crisis receiving and stabilization services that are connected to the state’s 988 system, Potts said.

The program will give Indiana and other participating states “sustainable funding” to expand mental health and addiction services. (An administration spokesperson could not immediately confirm how much federal funding Indiana would receive through the program.)

Jay Chaudhary, director of the Indiana Division of Mental Health and Addiction, said the clinics will “supercharge our build of this new system to where it’s a high-quality and transparent system that Hoosiers deserve.”

Mental Health America, a national nonprofit, ranked Indiana 24th overall among states and Washington, D.C., in its 2024 State of Mental Health in America Report, indicating a moderate prevalence of mental illness and access to care, up from 39th in its 2023 report.

Hoosiers in need of help — whether for themselves or someone else — can dial 9-8-8 or visit 988indiana.org.

Contact Jarred Meeks on X @jarredsmeeks or email him at [email protected].

Kelsey gets another reprieve from reporting to prison, hires Cothren attorney

Posted on by Erik Schelzig

Former state Sen. Brian Kelsey is getting a three-month reprieve from reporting to federal prison while he lobs a legal Hail Mary to the nation’s highest court.

Kelsey was sentenced to 21 months behind bars for masterminding a campaign finance fraud scheme involving former state Rep. Jeremy Durham, businessman Andy Miller Jr, Standard Club owner Josh Smith and the American Conservative Union. Kelsey and Smith pleaded guilty, while Miller and Durham were granted immunity in return for their cooperation. Nobody at the American Conservative Union was charged, including a former staffer who is now Kelsey’s wife.

Kelsey, who pleaded guilty to two felony counts, argued federal prosecutors had violated the plea agreement by advocating for a sentence enhancement because when he had professed his innocence while trying to withdraw from the deal. The government said it wasn’t arguing in favor of the enhancement, but only noting that the recommendation was valid because perjury is considered obstruction of justice.

Kelsey lost his legal challenge before a three-judge panel at the 6th Circuit Court of Appeals in July. And after a motion to have the case reheard by the entire appellate court was rejected, he was ordered earlier this week to report to federal prison in Kentucky by Oct. 1.

But Kelsey’s original 6th Circuit panel on Friday granted a motion to allow him to stay out of prison for 90 days while asking the U.S. Supreme Court to take up his case. 

Meanwhile, Kelsey’s legal team appears to be undergoing its latest shakeup. According to a filing in U.S. District Court in Nashville this week, Kelsey is replacing Alex Little with Joy Boyd Longnecker.

Longnecker is currently serving on the defense team for Cade Cothren, a former top state legislative aide who is awaiting a federal trial on bribery and kickback charges alongside former state House Speaker Glen Casada, R-Franklin. 

Kelsey has churned through attorneys since first being indicted in October 2021. His first his lawyer was Ty Howard of the Bradley law firm in Nashville. The lawmaker soon replaced him with former U.S. Attorneys David Rivera and Jerry Martin along with prominent criminal defense lawyer Frank Bruno. When he started having second thoughts about pleading guilty, Kelsey in March 2023 hired David Warrington of the Dhillon Law Group in Washington. 

When the effort to withdraw the plea failed, Kelsey hired Little and Zachary Lawson, who noted their client had experienced “deterioration of attorney-client relationships, the potential for future litigation involving prior counsel, and the need to have counsel of choice representing him at sentencing.”

Ethics panel declines to take up complaint after education commissioner repays money to former employer

Posted on by Andy Sher

Tennessee Ethics Commission members have dismissed a complaint against state Education Commissioner Lizzette Reynolds because she paid back money she received from a pro-voucher group she used to work for. 

“The Commission found that, although the need to address these matters is disappointing, ultimately, due to Commissioner Reynold’s repayment of the expenses in question, there is insufficient probable cause and insufficient value to be gained by proceeding with this matter further,” Bill Young, the executive director of the Bureau of Ethics and Campaign Finance, wrote in a letter to state Rep. Caleb Hemmer, who had filed the formal complaint, and Erin Merrick, Republican Gov. Bill Lee’s chief legal counsel.

The vote, which took place during a closed-door session last week, was 4-0. Three members were present for last week’s meeting and the fourth participated by phone. Two members of the six-member body were absent.

The Tennessean first reported that Reynolds had accepted $1,988.77 from ExcelinEd to attend its conferences. Following the media attention, Reynolds repaid the money and was then reimbursed by the state. 

“To prevent similar occurrences in the future, the Commission has instructed that our Office prepare a recommendation to the General Assembly to require all members of the Governor’s Cabinet, including all Commissioners of the Executive Departments, to complete the same annual ethics training that is required of all members of the General Assembly,” Young wrote in the letter.

Hemmer alleged Reynolds twice illegally accepted travel reimbursements from ExcelinEd for out-of-state conferences. The Nashville Democrat also sharply criticized Merrick for what he said was her “glossing over key facts in her effort to clean up” for what he characterized as Reynolds’ “continued malfeasance and failure of leadership at the Tennessee Department of Education.”

Merrick argued Hemmer’s complaint was politically motivated, stemming from his opposition to the governor’s school voucher proposals.

ExcelinEd, which was founded by former Florida Gov. Jen Bush, is a 501(c)(3) nonprofit group. Money for Reynolds’ free travel and meals came from ExcelinEd’s affiliated 501(c)(4) group, Excel In Action, which can accept unlimited corporate and personal donations which they can use to engage in lobbying or political activity. The group listed one Tennessee lobbyist in its 2024 filings.

The governor, his administration, ExcelinEd and other groups have repeatedly sought to push a statewide school voucher bill.

In his first year in office, the governor succeeded in narrowly squeezing through a voucher program limited to Metro Nashville and Shelby County school systems, though the heavy-handed leadership of House Speaker Glen Casada in ushering through the bill’s narrow passage contributed to his downfall from the leadership position after the session ended. Hamilton County was added to the existing voucher program last year.

But Lee has been stymied ever since in trying to get vouchers through the GOP-led General Assembly, including a failed effort just this year. 

Hemmer has said that while Reynolds has “voluntarily” repaid monies associated with the travel, that’s not good enough. Hemmer also criticized Reynolds earlier this year after the Tennessee Education Association and others said she did not meet the state’s education requirements for being commissioner.

Reynolds later began taking classes to move her toward teacher certification. But that too created controversy because she was technically not qualified for a state stipend because she had not been a resident of the state for at least six months. She ultimately paid the money back.

Lee has persistently stood behind Reynolds, who is paid more than $270,000 annually.

Young said the commission in the past has taken the position that it’s “primary goal and purpose is to ensure compliance with state law.”

“It has been the Commission’s standard practice that if any respondent brings his or her conduct and filings into compliance with State law prior to the assessment of a civil penalty, then no further need exists for action on the part of the commission, as its primary goal has been achieved,” Young wrote.

He said in Reynolds’ case, the the facts presented were “sufficient for the Commission to evaluate the matter without additional investigation” He added that he wanted to “make clear that it is not making a finding or conclusion regarding whether Commissioner Reynolds has knowingly violated [the law] by accepting a prohibited gift from an employer of a lobbyist, either directly or indirectly.”

Hemmer praised the commission for looking into his complaint and recommending ethics training for the executive branch. But he criticized Reynolds tenure as education chief.

“The controversies surrounding Commissioner Lizzette Reynolds have been well documented, yet she continues to serve despite repeated indiscretions that demonstrate that isn’t qualified to hold her position,” he said in a statement.

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