FRANKFORT, Ky. (AP) — It sounded like a story line fit to spice up a soap opera, only it was an auditor’s review of spending by two Kentucky groups representing locally elected officials.

At the Kentucky Association of Counties, some officials were found to have splurged on indulgences like booze, sports tickets and, in some cases, strippers — with the tab topping $3 million in excessive or questionable spending over three years, State Auditor Crit Luallen said.

The Kentucky League of Cities was singled out by the auditor for alleged conflicts of interest in spending, undocumented credit card expenses and gifts from vendors — including admission to a Las Vegas strip club for three League staff members.

Those findings have spurred a bipartisan move by Kentucky lawmakers to shed more light on the groups, which aren’t part of state or local government but are funded primarily by public money.

Legislation winding through the General Assembly would subject the two organizations to Kentucky’s open records and open meetings laws.

“The issue at the core of these controversies is that boards primarily funded by public dollars and governed by public officials must be ultimately accountable to the taxpayers,” Luallen said in a statement.

Bills were introduced in the House and Senate to bring more transparency to both groups.

Proposals in one or both bills would put the groups under strict ethics guidelines and require them to undergo annual audits and post their spending, budget documents and audit reports on a public Web site. They would be expected to follow state procurement rules, and their employees would get whistle-blower protection if they report misdeeds.

Republican Sen. Damon Thayer of Georgetown, sponsor of one of the bills, said one goal is to allow Kentuckians to keep closer tabs on both organizations.

“It will provide more assurance to taxpayers that the kind of abuses that took place in the past ... will not occur again,” he said.

House Speaker Greg Stumbo, D-Prestonsburg, called the legislation a “well-reasoned response” to the findings from last year’s investigations.

“I think we will end this session with a strong law that puts them under the same types of rules that have long applied to the local governments they serve,” Stumbo said.

Bowling Green Mayor Elaine Walker, first vice president of the League of Cities’ executive board, told a legislative panel last month that the board became complacent in its oversight.

She said the legislation would “help guarantee that future governing boards do not make the same mistakes” and would help hold staff “to the high standards our city members deserve.”

Denny Nunnelley, executive director of the Kentucky Association of Counties, said the group has abided by open meetings and open records laws for some time. He said the group is not opposing other provisions, though he said the procurement rules proposed in the legislation would be more stringent than what state and local governments face.

“We’ve got to take our medicine,” said Nunnelley, who was chosen for the top spot following the auditor’s findings.

Last year, Luallen’s blistering report on the Kentucky Association of Counties outlined a “self-serving” culture where some top officials spent association funds on lavish dinners, birthdays, Christmas parties and even personal escorts.

The association is a nonprofit group that advocates on behalf of the state’s 120 counties and its elected officials.

A few weeks later, the auditor’s report on the League of Cities found that executives in the organization accepted gifts and gratuities from vendors, including housing and expenses at a small island in the Caribbean. The review uncovered $430,000 spent by the organization on out-of-state travel for staffers and their spouses, $56,000 for meals at local restaurants and $50,000 to purchase tickets to football and basketball games and to horse racing events.

The League’s main function is to provide insurance coverage for Kentucky cities and to do research and training for city officials.

Luallen’s office began reviewing both organizations’ spending following reports by the Lexington Herald-Leader detailing questionable spending.

Luallen, whose office helped craft the legislation, said it’s the right prescription to cure what ailed the scandal-plagued organizations.

“Ensuring more accountability and transparency for these organizations is vital to Kentuckians regaining their trust and to prevent future missteps,” Luallen said.

 

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