The Bluegrass Area Development District must fork over nearly $900,000 in misused funds or risk suspension – that’s according to a letter sent by the state Education and Workforce Development Cabinet.
Friday, the Cabinet informed the regional agency responsible for overseeing millions in federal and state grants in a 17 county area that questions remain about funds spent over a three year period starting in 2010. Bluegrass ADD has been on the hot seat since a damaging audit in 2014 uncovered conflicts of interest and problematic spending.
The ADD’s executive director, David Duttlinger, says the agency has not decided whether to appeal the action, stressing that the findings do not reflect current management practices.
Area Development Districts would have faced stricter state oversight under a bill authored by Lexington Rep. Susan Westrom, though that legislation appears stalled for this session.
"I think taxpayers would be appalled how their tax dollars were being spent and they should be very, very angry," she tells WUKY.
Other lawmakers have said ADDs should be given time to implement fixes while agency leaders worry aloud about the price tag of regular audits mandated in the bill.
