Kentucky Auditor Flags Millions in Questionable State Spending

Report details $39 million in advertising and luxury travel costs across executive branch

Kentucky Auditor Flags Millions in Questionable State Spending

FRANKFORT, Ky. (WKYT) – Kentucky State Auditor Allison Ball released a report identifying millions of dollars in questionable spending by executive branch agencies during fiscal year 2025, including $39 million on advertising and $7.4 million on out-of-state travel.

“It is clear that some executive branch agencies are spending tax dollars extravagantly and this needs to stop,” Auditor Ball said. “Public servants should be safeguarding money as if it was coming from their own pockets, rather than doling it out on extravagant travel and other unnecessary expenses.”

The Kentucky Auditor of Public Accounts reviewed data from the state’s eMARS financial system to compile the report. The findings raised concerns about competitive bidding practices and detailed spending on luxury accommodations and promotional materials.

Advertising and Promotional Spending

Executive branch agencies spent $39,055,133.96 on advertising, including $2,488,789.77 paid to vendor Red7e across multiple agencies.

The Cabinet for Health and Family Services (CHFS) spent $249,950 on an ad campaign encouraging COVID vaccination. CHFS’s Office of the Secretary and Office of Medical Cannabis paid one vendor $339,365.90 for video production, social media strategy, and digital communications management.

The Department for Aging and Independent Living allocated $198,000 for a Senior Meals Program media campaign while also citing a funding shortfall within that same program.

CHFS’s Department for Community Based Services spent $45,635.20 on promotional items such as color-changing tumblers, cotton canvas tote bags, stadium cushions, football rockets, and clip-on antibacterial hand sanitizers.

The Council for Postsecondary Education paid $300,000 to promote awareness of post-secondary education.

Out-of-State Travel Expenses

State agencies reported $7,438,490 in out-of-state travel costs, with $398,897.12 charged to agency American Express cards.

The Kentucky Department of Education spent at least $929,947.88 on out-of-state travel, including $28,179.35 for flights involving individuals who may not be state employees.

Kentucky State Police spent $183,575.87 providing security for Gov. Andy Beshear and staff during out-of-state travel. Specific expenses included $11,786.33 for flights to Europe, $7,632.07 for a limousine in Germany, $5,192.16 for airport navigation services in Switzerland, and $520.73 for meals at the Caribou Club, a private club in Aspen.

Additional travel costs included $10,953.33 for lodging at the Eau Palm Beach Resort, $3,499.50 at the Limelight Hotel in Aspen, and $3,179.19 for hotels in Beverly Hills.

Conference and Training Costs

Agencies spent $16,693,103.32 on training sessions, conferences, food, and trade show expenses.

The Tourism Cabinet and the Governor’s Office jointly paid $338,452.10 to a nonprofit organization, First Saturday in May, for Derby-related events.

The Department of Public Advocacy spent $153,377.71 on its 2024 annual conference and $189,237.52 on its 2025 conference.

The Department for Medicaid Services hosted a banquet costing $34,392.04, including $8,985 for breakfast, $13,485 for lunch, and $6,431.04 in service charges.

Other Spending Concerns

The report identified $69,770,650.13 spent on temporary manpower services, including nearly $8 million by the Division of Driver Licensing within the Department of Vehicle Regulation. The auditor noted this spending occurred alongside public reports alleging a black market for driver’s license sales to undocumented noncitizens.

The Department for Community Based Services paid $915,997.89 for outside legal services despite employing more than 50 attorneys. It also paid $481,523.05 to a single vendor for emotional injury evaluations—$339,016.80 more than the next highest vendor providing similar services.

The auditor highlighted ongoing concerns, including the Department for Medicaid Services failing for at least two fiscal years to ensure Medicaid benefits were not provided to ineligible noncitizens, and CHFS failing to prevent at least $836 million in Medicaid waste since 2019.

The report also stated that some services appeared to bypass competitive bidding requirements. It further noted limitations in reviewing transactions, including inconsistent use of expenditure codes and delays in recording expenses in real time.