FRANKFORT, Ky. (WKYT) – Kentucky’s state auditor Allison Ball released findings showing millions of dollars in questionable spending across executive branch agencies in fiscal year 2025, including $39 million in advertising expenditures and $7.4 million in out-of-state travel costs.

“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 examined data within the state’s eMARS financial system to compile the spending report, which highlighted concerns about competitive bidding processes and detailed expenses for luxury accommodations and promotional items.

Advertising and promotional spending

Executive branch entities spent $39,055,133.96 on advertising expenditures, with $2,488,789.77 going to vendor Red7e across multiple agencies.

The Cabinet for Health and Family Services paid $249,950 for an ad campaign that included telling people to get a COVID vaccine. CHFS’s Office of the Secretary and Office of Medical Cannabis paid one vendor $339,365.90 for video footage assistance, social media strategy development and digital communications channel management.

The Department for Aging and Independent Living paid $198,000 for a media campaign for the Senior Meals Program, despite alleging a shortfall within that same program.

CHFS’s Department for Community Based Services spent $45,635.20 on promotional items including color changing tumblers, cotton canvas totes, stadium cushions, football rockets and antibacterial hand sanitizers with clips.

The Council for Postsecondary Education paid $300,000 to increase public awareness of the importance of post-secondary education.

Out-of-state travel expenses

State agencies spent $7,438,490 on out-of-state travel, 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 in flights for individuals who may not be state employees.

Kentucky State Police spent $183,575.87 providing security to Governor Beshear and staff members during out-of-state trips. 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 membership club in Aspen.

Other notable travel expenses included $10,953.33 to stay at the Eau Palm Beach Resort, $3,499.50 for 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 trainings, conferences, food and trade show expenditures.

The Tourism Cabinet and Governor’s Office paid a combined $338,452.10 for Derby events to a non-profit company called First Saturday in May.

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

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

Other spending concerns

The report highlighted $69,770,650.13 spent on temporary manpower services, with the Department of Vehicle Regulation’s Division of Driver Licensing spending almost $8 million. The auditor noted this spending occurred amid public reporting of an alleged black market of driver’s license sales to undocumented noncitizens.

The Department for Community Based Services spent $915,997.89 for legal services despite having over 50 attorneys on staff. The department also paid $481,523.05 to one vendor for emotional injury evaluations, which was $339,016.80 more than the next highest vendor for the same services.

The auditor noted several ongoing issues, including the Department for Medicaid Services failing to ensure Medicaid benefits are not given to ineligible noncitizens for at least two fiscal years and CHFS failing to prevent at least $836 million in Medicaid program waste since 2019.

The report stated that competitive bidding processes appeared not to be used to obtain some services and noted disadvantages in examining transactions including no uniform use of expenditure codes and expenditures not being recorded in real time.

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