State Auditor Allison Ball released a report outlining 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 lodging 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 spent $249,950 on an ad campaign encouraging COVID vaccinations. CHFS’s Office of the Secretary and Office of Medical Cannabis paid one vendor $339,365.90 for video footage support, 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 citing a funding shortfall within the program.
CHFS’s Department for Community Based Services used $45,635.20 for promotional items such as 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 boost public awareness about the value of post-secondary education.
Out-of-state travel expenses
Agencies reported $7,438,490 in out-of-state travel expenses, 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 airfare for individuals who may not be state employees.
Kentucky State Police spent $183,575.87 providing security for Governor Beshear and staff during out-of-state trips. 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.
Additional travel costs included $10,953.33 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 together paid $338,452.10 to a nonprofit, 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, which included $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 staffing services, with nearly $8 million coming from the Department of Vehicle Regulation’s Division of Driver Licensing. The auditor noted that this spending occurred amid reports of an alleged black market involving driver’s license sales to undocumented noncitizens.
The Department for Community Based Services paid $915,997.89 for legal services despite employing more than 50 attorneys. It also paid $481,523.05 to one vendor for emotional injury evaluations, which exceeded the next highest vendor by $339,016.80 for similar services.
The auditor cited ongoing concerns, including the Department for Medicaid Services failing for at least two fiscal years to prevent Medicaid benefits from going to ineligible noncitizens and CHFS failing to stop at least $836 million in Medicaid waste since 2019.
The report also stated that some services appeared not to go through competitive bidding. It highlighted challenges in reviewing transactions, including inconsistent use of expenditure codes and delays in recording expenses in real time.