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Budget office: board fund strengthened; staff to monitor pro rata and personnel cost pressures
Summary
Department of Consumer Affairs budget staff presented the board’s fiscal year projections showing a stronger reserve position driven by an $60,000 reversion and projected revenue stability, while cautioning that personal service and pro rata increases will pressure future years' expenditures.
Department of Consumer Affairs budget staff presented the board’s fund condition statement and revenue/expenditure projections during the Oct. 8 meeting, reporting an improved reserve position but flagging rising personal service and pro rata costs.
Kayla Van Lent, budget analyst with the Department of Consumer Affairs budget office, told the board that actuals through fiscal month 13 were used to derive projections and that the board started 2024–25 with a beginning balance of $841,000. The board collected $667,000 in revenues that year: about $100,000 from initial license fees, $521,000 from renewals and $46,000 from citations and other receipts, the presentation shows.
Why it matters: the fund condition determines whether the board needs supplemental appropriations, fee adjustments, or operational changes. Budget staff said the board ended 2024–25 with a reserve of roughly $787,000 (about 12.9 months). For 2025–26, staff projected revenues of $618,000 and expenditures of about $733,000, leaving a projected reserve of $672,000 (about 10.8 months).
Key figures and discussion
- Beginning base budget and reversion: Kayla said the board’s beginning base appropriation is $755,000 and that actual spending of roughly $695,000 produced a reversion of about $60,000 (roughly an 8% reversion).
- Revenue breakdown (2024–25 actuals): initial license fees ~$100,000; renewal fees ~$521,000; citations/fines/other ~$46,000.
- Projection (2025–26): projected revenues $618,000 (initial $90,000; renewals $486,000; other $42,000) and projected expenditures ~$733,000 including direct draws for statewide pro rata and pension.
- Cost pressures: Kayla said the budget office applies a conservative 3% ongoing increase for personal service adjustments (salaries, retirement). Rebecca noted a notable jump in the board’s pro rata charges in 2023–24 and asked the budget office to explain what is included in the pro rata totals.
Board Q&A and follow-up
Dr. Dara Thompson asked whether the fund condition is improving; Kayla responded that yes, the fund condition is improving but cautioned that current-year spending estimates are conservative when actuals change and that the reversion increases reserves when realized.
The budget office committed to ongoing monthly expenditure projections and to follow up on the pro rata increase so staff can amend the narrative in the sunset report where necessary.
Ending
Budget staff did not ask for board action; members asked clarifying questions and the office will continue to monitor the fund and report monthly.
