The California State Board of Optometry reviewed its fiscal condition and fund projections during its public meeting, hearing from Department of Consumer Affairs budget staff about a surplus in the most recent fiscal year and longer-term cost pressures.

Budget analyst Emily Molino told the board the board began the 2024–25 year with a balance of about $2.93 million and collected roughly $3.345 million in revenues. The board spent about $2.9 million through fiscal month 13, producing an estimated reversion of about $1.18 million (roughly 28.8 percent of the beginning budget in that fiscal snapshot).

The board projects $3.346 million in revenue for the coming year, with renewals the largest single source. Nicole Dragoo, budget manager, and other staff noted the board now holds roughly $2.11 million in reserves (about 5.8 months of expenditures on the fund condition statement presented to the board).

Budget office staff and board members flagged two one‑time or volatile revenue sources that materially affected the recent surplus. One was interest income (about $153,000), which budget staff said is sensitive to economic conditions; the other was citation and fine revenue (about $100,000 last year). "If you eliminate those two inputs, there is no surplus," a budget office representative told the board, urging caution when using the surplus to justify ongoing increases in spending.

Board members and budget staff discussed a second, "mock" fund condition that assumes the board will not fully expend authorized spending authority. That mock model projects a smaller drawdown of the fund and is intended to show a more conservative, realistic outlook.

Board members asked about renewal‑fee projections, which the budget office left conservative and flat in out years until the governor’s budget is published and the office can update estimates. Emily Molino said the governor’s budget release in January will provide a clearer picture and that a May revise later in the spring will refine the numbers further.

Members pressed staff on whether the board’s recent fee regulation (implemented July 2024) produced expected revenue. Budget staff said the fee increases nearly realized the projected $600,000 in additional receipts and that other cost controls (lease renegotiation and a reduced authorized position count) also helped produce the present year surplus.

Board members and budget staff agreed the surplus should be treated cautiously. The budget office advised that statutory fee caps and continuing salary and retirement cost increases could create cost pressure in future years and that any new legislation or unexpected events would affect the fund condition.

The board asked that staff continue monthly monitoring and report back with updated expenditure projections and any material changes in revenue assumptions.