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Accountancy Board asks Ways and Means for flexible fee authority, highlights workforce risks
Summary
The Accountancy Board of Ohio told the Ways and Means Committee it oversees nearly 30,000 CPA/PA licenses and is funded entirely by licensing fees; the board asked the legislature to let it set permit fees by rule to smooth revenue as retirements reduce renewals and described a statutory change to clarify ESOP ownership rules for CPA firms.
The Accountancy Board of Ohio asked the House Ways and Means Committee to approve its biennial budget request and to grant the board authority to set incremental permit fees by administrative rule to preserve operations as an aging licensee population reduces fee revenue.
Executive Director Donna O'Clock told the committee the board oversees roughly 30,000 active CPA and public-accountant licenses and more than 2,400 CPA firm registrations, is funded entirely by license and permit fees, and does not draw from the General Revenue Fund. “We are self sustaining and we spend no money from the general revenue fund,” she said.
The board said retirements and attrition are beginning to reduce revenue: it reported a modest surplus but noted a $105,000 drop in renewals and income between FY 2024 and FY 2025. The board requested statutory authority to set permit fees by rule to allow modest, incremental increases rather than large, sudden fee hikes; staff suggested increases on the order of small amounts (for example, $15–$30 over a licensing cycle) to avoid deterring new entrants.
Board officials also described a proposed statutory clarification to permit employee stock ownership plans (ESOPs) while preserving the requirement that CPA firms maintain majority CPA ownership. The change would allow non-CPA employee ownership through a separate entity while ensuring CPAs retain control consistent with professional licensing rules, the board said.
Committee members asked about license categories and workforce development. Director O'Clock said the board administers an education fund, supported by a licensing surcharge, that has funded scholarships and exam-prep programs. In response to questions about remote work, she said staff productivity has not fallen while remote but that the board will plan for an office return in line with state direction.
The board asked the committee to approve funding at the executive budget level and said the requested changes would preserve licensure operations while allowing continued workforce-development support.
