In a recent government meeting, officials discussed significant budgetary challenges faced by the board, particularly concerning the collection of fees necessary to meet operational mandates. The board's reliance on emergency rulemaking to set rates for the fiscal year, which begins on October 1, has created complications for facility payers who are informed of their fees only after the fiscal year has commenced.

During the meeting, it was revealed that the board did not adjust fees for the 2023-2024 fiscal year, based on initial reports suggesting sufficient revenue would be generated. However, this expectation did not materialize, leading to a substantial deficit and necessitating loans to the Department of Toxic Substances Control (DTSC). A subcommittee has been actively investigating the reasons behind these revenue shortfalls, focusing on various factors including contract evaluations and enforcement issues.

Key problems identified include incomplete accounting of waste tonnage subject to fees, a lack of awareness among generators regarding payment timelines, and inadequate penalties for late payments. The current penalty structure, which allows for minimal financial repercussions for late payments, has been flagged as a significant issue that needs reform. Additionally, the meeting highlighted concerns over exemptions that may have been improperly applied, which could shift the financial burden onto compliant fee payers.

To address these challenges, the board has taken steps to enhance its contract with the California Department of Tax and Fee Administration (CDTFA) to improve reporting accuracy. Engagement with fee payers has been prioritized, with multiple public workshops and meetings held to discuss fee structures and gather feedback. The board plans to present further details on these initiatives in an upcoming workshop scheduled for August 15.

Overall, the discussions underscored the critical need for transparency and collaboration with fee payers to resolve the structural issues affecting revenue collection and ensure the board can meet its financial obligations moving forward.