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Bureau reports stable reserves across home‑furnishings, appliance repair and movers funds
Summary
The Bureau of Household Goods and Services told its advisory council on Aug. 14 that fund balances remain structurally healthy despite projected declines in some reserves; staff said fiscal 2019–20 numbers are preliminary and the bureau typically reverts unused appropriations.
Nicholas Oliver, Bureau Chief of the Bureau of Household Goods and Services, said at the Aug. 14 advisory council meeting that agency budget staff are monitoring fund balances for the bureau’s three program areas.
Marie Reyes, interim budget analyst in the Department of Consumer Affairs fiscal operations, presented preliminary fund conditions for fiscal year 2019–20 and projections for 2021 and 2022. Reyes said the numbers are based on 11 months of actuals plus a projection for the 12th month and that the fiscal year closeout is expected in September or October.
Reyes told the council that the Home Furnishings and Thermal Insulation fund carried a beginning balance of about $4.33 million and anticipated revenue of about $5.2 million for a total resource base near $9.6 million for 2019–20. After expenditures of roughly $4.261 million in 2019–20, Reyes said the fund was projected to carry roughly $4.959 million into 2021, which she characterized as about 10.9 months of reserve. When asked what a healthy reserve is, Reyes said roughly six months is considered healthy.
Reyes said the Electronic and Appliance Repair fund was also structurally balanced, with projected revenues near $2.9 million and expenditures of about $2.1 million for 2019–20, leaving approximately a year or more of reserves. The Household Movers fund showed a similar pattern: Reyes said the fund received about $2.9 million in revenue for the year, spent about $1.9 million, and—after transfers—was projected to hold reserves equivalent to more than 12 months.
Council members asked whether seasonal patterns or the COVID‑19 shutdown affected projections. Reyes and Chief Oliver said the movers fund typically realizes more revenue in the second and third quarters because of summer moving season, and that the bureau has limited historical data since it only recently took over the program. Reyes said she would follow up by email on the renewal‑fee projection question raised by a council member to confirm whether a large late quarter deposit drove the difference between an earlier projection and the year‑end numbers.
Reyes emphasized the bureau’s historical pattern of reverting unused appropriations and said budget staff monitor funds and would contact the bureau if reserves fell to levels requiring action. No formal budget actions or motions were taken at the meeting.
Members of the council asked follow‑up questions about rebudgeting in the state due to COVID‑19; Reyes said adjustments already were made and she was not aware of additional rebudgeting for the bureau at that time.
The bureau confirmed it will post final numbers after the fiscal year is closed and encouraged council members to contact the fiscal office with follow‑up questions.
