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Board hears fund condition: reserve fell to $821,000; proposed fees to prolong solvency
Summary
Board budget staff presented 2023–24 actuals and 2024–25 projections showing reserves of $821,000 at year-end (12.4 months) and a projected 8.5 months in reserve under the governor's budget; staff said proposed fee increases will prolong but not permanently fix fund imbalance.
Board budget staff presented the California Board of Naturopathic Medicine’s 2023–24 actual expenditures and a fund-condition projection for 2024–25, showing a year-end reserve that staff said will decline absent additional revenue or changes to the licensee population.
Harmony Ippilippo of the budget office reviewed attachments included in the board packet. She told members the board began fiscal year 2023–24 with a beginning balance of $888,000, collected $622,000 in revenue (including $90,000 from initial license fees, $486,000 from renewals and $46,000 from fines and other receipts), and expended $689,000. The board ended 2023–24 with a reserve balance of about $821,000, which the budget office computed as roughly 12.4 months in reserve.
For the current fiscal year (2024–25) the budget office projected revenues of about $550,000 (with roughly $100,000 from initial licenses, $431,000 from renewals and $19,000 from fines and other revenue) and budgeted expenditures of $779,000 under the governor’s budget. That baseline projection would leave an ending fund balance of approximately $574,000, or about 8.5 months in reserve, staff said.
Ippilippo emphasized that the fund-condition statement is a snapshot and that projected expenditure increases often stem from personnel-service adjustments and retirement-rate changes; the budget office applies a conservative 3% yearly escalation for such items. She also noted that unanticipated events or new legislation could require further resources and increase cost pressures.
Board members asked clarifying questions about where “income from surplus money investments” is calculated. Ippilippo explained the number is derived from a formula that considers the beginning balance, revenues and expenditures for the fiscal year and that it is updated as the fund condition is revised.
When asked whether the current figures reflect proposed fee increases, Ippilippo and the executive officer said the projections in the packet were based on current fees; staff will update the fund condition if the board’s proposed fee schedule is approved.
No public speakers addressed the budget at the meeting. The budget office said it will continue monthly monitoring and report updated projections at future meetings.
