State Report Tallies Tens of Millions in Media, Travel and Event Costs

JOBEnews.com

 

Kentucky executive branch agencies spent more than $39 million on advertising and communications and millions more on travel, conferences and contracted services in the 2025 fiscal year, according to a report released by Allison Ball, Kentucky Auditor of Public Accounts, on Feb. 10.

Governor Andy Beshear disputed some of the findings a day after the report was released in a Team Kentucky update after a press member asked about the findings, likening it to a “political attack.”

The report lists $39,055,133.96 in advertising expenditures and notes that every executive branch entity maintains some form of communications staff. Payments included $2,488,789.77 to marketing firm Red7e.

The report details $7,438,490 in out-of-state travel, including nearly $930,000 by the Kentucky Department of Education and $183,575.87 by Kentucky State Police while providing security for Gov. Andy Beshear and staff. Expenses included international flights, resort lodging, and conference travel.

In-state travel totaled $23,278,869, much of it tied to education-related conferences and seminars.

Agencies also reported $16,693,103.32 in spending on trainings, conferences, food, and trade shows. The report cites Derby-related payments totaling $338,452.10 by the Tourism Cabinet and Governor’s Office, six-figure annual conference costs by the Department of Public Advocacy and a $34,392 banquet by the Department for Medicaid Services.

Beyond travel and events, the report lists $69.8 million in “temporary manpower services,” nearly $8 million by the Division of Driver Licensing, $51.8 million in services categorized as “not otherwise classified,” $118.4 million in “other” expenses and $3.98 million for travel by non-state employees.

The Cabinet for Health and Family Services’ Office of the Secretary and Office of Medical Cannabis paid a single vendor $339,365.90 for services that included video production and consulting, editing, branding graphics, introductory materials, and digital formatting. The contract also covered development and implementation of a social media strategy representing the cabinet and its agencies, as well as management of digital communications channels. The auditor’s report states it appears the competitive bidding process was not used to obtain the services.

Beshear responded to this finding, noting that false information was given under oath. “They spent $93,000 to create training and educational videos for the public. The videos were for prospective medical cannabis licenses. They were for law enforcement about what’s legal and what’s not. They were for patients, providers, and for local government officials.”

He also denied the claim that the bidding didn’t go through a competitive process.

The report also highlights more than $34.3 million in IT-related services at CHFS despite the cabinet having internal IT resources, and raises concerns about billing practices tied to certain contracted services within the Department for Community Based Services.

The Cabinet for Health and Family Services paid $249,950 for a campaign that included messaging encouraging COVID-19 vaccinations. The Kentucky Historical Society paid $83,500 for digital media and professional services.

CHFS offices also paid a vendor $339,365.90 for video production, branding and social media strategy services. The auditor’s report states that it appears the competitive bidding process was not used to obtain those services.

The Council on Postsecondary Education paid $300,000 to promote the value of postsecondary education. CHFS’s Department for Aging and Independent Living spent $198,000 on a media campaign for the Senior Meals Program, despite previously citing a program shortfall, and $17,275 on promotional items. The Department for Community Based Services spent $45,635.20 on promotional products.

Beshear said the $198,000 for the Department of Aging and Independent Living was the membership fee paid to be included in a federally required public education program.

The auditor’s findings summarize extensive spending across multiple categories and call attention to procurement practices, oversight and internal controls within state government.

Ball told members of the Kentucky House Appropriations and Revenue Committee this week that some executive branch agencies are spending taxpayer dollars excessively, citing examples of travel, conference and event expenses.

“It is clear that some executive branch agencies are spending tax dollars extravagantly and this needs to stop,” Ball said in her presentation. “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 Auditor’s Office reviewed executive branch spending data in the state’s eMARS accounting system, focusing on categories it identified as prone to wasteful or excessive spending, including out-of-state travel and advertising.