Public trust is the foundation of good governance. When agencies handle taxpayer money, they owe the public full transparency and accountability. That is precisely what lawmakers intended when they enacted KRS 65A in 2013.
With the recent suspension of state funding for three Martin County entities—the Tourism Commission, Housing Authority, and Big Sandy Regional Airport Authority—one must give pause as to why compliance with this law is not just a legal requirement but a moral obligation.
The law exists for a simple reason: to hold government accountable to the people it serves.
Special Purpose Governmental Entities (SPGEs) are entrusted with public resources. In return, they must uphold public confidence by submitting financial reports, registering annually and disclosing budgets. When they fail to do so, they do more than break the law—they erode public confidence.
Some may dismiss these requirements as bureaucratic red tape, but it’s the law.
KRS 65A exists to keep citizens informed and to protect them from financial mismanagement.
Every dollar these agencies receive originates from taxpayers—whether through local taxes, state or federal allocations, grants or other funding sources. When an agency fails to comply, the cost of rectifying the situation still comes from public funds. If the state orders an audit, the entity—funded by taxpayers—must foot the bill. If it takes legal action to force compliance, the SPGE bears the cost, and by extension, so do the people of Martin County.
This is a reckless use of taxpayer money. Instead of funding community improvements, infrastructure, services or development, public funds could go for squander on entirely avoidable expenses.
Transparency is a duty, not an option. The Tourism Commission has not submitted financial reports since 2022. The Housing Authority, despite its exemption from certain reporting requirements and fees, failed to file the simple exclusion forms that would have kept it in compliance. The Big Sandy Regional Airport Authority, while recently attempting to rectify violations, still has years of missing audits.
These are not clerical errors. They are choices.
Kentucky law recognizes the importance of transparency, which is why it imposes penalties on noncompliant SPGEs. Withholding state funding is a safeguard to ensure responsible management of public money.
Agencies that choose to continue on the path that is darkness—the path to breaking the law—should be held accountable through audits, court orders or even restructuring.
This halting of funding for the three local entities should be a wake-up call to all public entities and officials to leave the darkness and keep a positive spirit. Transparency is the foundation of good governance—and compliance is where you find the light.