Physical Therapy Board reports healthy revenues, warns months‑in‑reserve will fall without action

Board staff reported on the board’s fiscal year 2024–25 fund condition, telling members the board ended the year with higher revenues than expenditures but flagged conservative projections that reserves will decline without continued attention.

The administrative presentation noted the board’s expenditures for FY24‑25 were about $7,023,000 and revenues were about $7,674,000, and that staff reverted $155,000 to the fund. “We were able to revert, a $155,000 back to the fund,” the presenter said. The board’s months in reserve were 9.2 months for the most recent fiscal year but staff projected that, under conservative assumptions, months in reserve could fall to about 8.6 then 7.0, and to approximately 6.6 in FY26‑27.

Why it matters: The board is at statutory fee caps (a carryover issue noted in its sunset work), so it lacks unilateral authority to increase fee revenue without legislative action. Staff emphasized that the projection assumes straight‑lining current revenue and conservative expenditure growth and that under‑expenditure in some categories and higher revenues improve fund condition.

Details and context: Staff explained an equipment line‑item overage tied to delayed laptop deliveries from the prior fiscal year; the board had set money aside for laptops in the prior year but received them in the current year, resulting in higher equipment spending in FY24‑25. The presenter said the typical laptop life cycle is four to five years.

Board direction: Staff will include these projections in the sunset report and continue to plan budgets conservatively; members were reminded to submit per diem and travel claim paperwork promptly to avoid delays in reimbursements.

What’s next: The board will review the fund condition during upcoming budget cycles and the sunset drafting process; staff said the projections are conservative and that continued monitoring is warranted.