Beshear Calls State Auditor's Foster Care Housing Report Flawed, Disputes Findings

Kentucky Gov. Andy Beshear pushed back against a 129-page audit from State Auditor Allison Ball's office that found the Cabinet for Health and Family Services spent at least $6.1 million in taxpayer funds housing 304 foster children in non-traditional settings between January 2023 and October 2024, calling the report flawed and alleging it contained "significant errors and inaccuracies."

Speaking during a Thursday Team Kentucky update, Beshear argued the audit may have violated core auditing principles. "When you conduct an audit you have to give the agency that you are auditing a chance to comment on it because you might not have it all right," he said. "That wasn't done here." He added that the report appeared unaware of programs his administration had in place for nearly a year.

Ball's audit documented placements in cabinet office buildings, hotels, hospitals, state parks, and community centers. Of the 304 children affected, 174 remained in those settings for periods ranging from two to 55 days. Ball's office reported that 17 of those children were under age seven, 83 children with suicidal thoughts and behaviors were placed in office buildings without trained clinical supervision, and 89 children with histories of running away were placed in office buildings. About 10 children were placed in hotels. Ball described the findings as "a deep, and at this point, a systemic problem."

Beshear countered with findings from a separate independent investigation by the Kentucky Finance and Administration Cabinet's Office of the Inspector General, which he said was initiated on Feb. 3, 2025, and allowed the Cabinet for Health and Family Services and the Department for Community Based Services to respond before conclusions were drawn. He said that investigation found non-traditional placements account for only 1% to 2% of cases, with stays averaging just over two days and more than 50% of cases lasting 24 hours or less.

The governor argued the placements serve children with needs too complex for traditional foster homes. "In Kentucky, these placements only happen when children have unique and complex needs that cannot be met in a typical setting, because we don't have enough high acuity facilities in our state to provide the specialized care," he said. He described the children involved as "highly traumatized children who may have been violent, may have had other forms of aggression," noting that non-traditional placements protect both the child and prospective foster families.

Beshear also drew a geographic comparison: "One North Carolina county reported the average stay in a county office building was eight weeks and the longest was nine months."

Scottie Ellis, communications director for the governor, accused Ball of "prioritizing political games" and said the report was "likely to include significant errors." Ball, when asked about those comments, was direct: "No one likes to get audited."

The Cabinet for Health and Family Services said conditions in office buildings have improved since 2022, with furnished bedrooms, televisions, study areas, recreational spaces, and laundry services now available. Beshear said his administration would rely on the inspector general's findings going forward: "Our team is going to use this accurate information to better the care for foster children.