PHOENIX — A Maricopa County judge on Thursday temporarily blocked the transfer of $115 million in opioid treatment money from Arizona Attorney General Kris Mayes' office, hours after Mayes filed a lawsuit contending the fund transfer in the new state budget was illegal.
The budget, signed into law Tuesday by Democratic Gov. Katie Hobbs, required Mayes to transfer $75 million on Thursday to the Department of Corrections, Rehabilitation and Reentry, to plug a deficit in its current budget. Another $40 million is to be diverted to DOC by July 3 for the coming year's budget.
"All $115 million could end up being spent on beans, bullhorns, and buses with barred windows, the daily grist of the DOC's mill," the lawsuit stated.
"That would doom Plaintiff and the whole state of Arizona to possible loss of future payments, court actions seeking return of prior payments, and nothing for the poor epidemic's victims."
The money is from the proceeds of the Attorney General Office's legal settlement with 12 manufacturers and distributors of medications that fueled the opioid epidemic.
The settlement could reach $1.14 billion over 18 years. There are court-approved uses on how the money can be spent.
In a statement to 12News, Hobbs spokesman Christian Slater said:
"The Attorney General is flatly wrong. Her characterization of these funds as 'backfilling' ADCRR would be more accurately described as funding vital opioid use disorder treatment for a population that is disproportionately impacted by the opioid epidemic. On her very own website, the Attorney General indicates the funds can be used for opioid treatment at ADCRR.
"Additionally, her filing mischaracterizes how the money will be used. For example, the AG claims the money will be used for 'beans, bullhorns, and buses,' despite the budget explicitly saying the funds may only be used to 'offset past and current department costs for care, treatment, programs and other expenditures for individuals with opioid use disorder.' These are all uses that are allowed under the One Arizona Distribution of Settlement Funds Agreement."
Late last week, as budget votes proceeded in the Legislature, Mayes issued her threat to sue. She expressed concern that the administrators of the opioid settlement could try to claw back the state's money if it were improperly used.
During budget votes, Democratic lawmakers protested the fund transfer, with one labeling it "sleight of hand."
The lawsuit was filed against the state Department of Administration and its director, Hobbs appointee Elizabeth Alvarado-Thorson.
Mayes, whose lawyers represent DOA, retained outside counsel to file the suit.
A court hearing is scheduled for June 27.
The lawsuit marks Mayes' second legal clash in two weeks with Hobbs, a fellow Democrat.
Mayes has launched a criminal investigation of an alleged "pay-to-play" scheme involving a government contractor who's a Hobbs donor.
UP TO SPEED