DOPL reports audit progress, rising cash balances and requests inspector pay increases and vehicle replacements

The Division of Occupational and Professional Licenses (DOPL) told the Joint Finance‑Appropriations Committee Thursday it is working to address longstanding audit findings about board cash balances while seeking targeted pay and equipment funding to reduce turnover and backlogs.

Kellen McGurkin, budget and policy analyst with Legislative Services, outlined DOPL’s structure and finances: DOPL now includes three professional bureaus and one administrative bureau overseeing roughly 200,000 licensees across 45 boards and commissions as of July 2024. The agency carries an FTP cap of about 267.2 and reported substantial receipts and transfers in recent years—McGurkin flagged roughly $83 million in receipts and transfers in FY2022 that included $50 million in transfers from prior board cash balances and $30 million in new revenues from licensing and fees.

McGurkin and auditor April Renfro told the committee that legislative audit has an open finding related to excess cash balances in some board accounts. Renfro summarized the audit’s position: DOPL’s boards should target a reasonable reserve range based on a five‑year rolling average of expenditures (the audit cited roughly a 30% minimum and a 125% upper bound as a reasonableness range). She said DOPL has provided reports and plans to reduce excessive balances and that reducing balances through fee changes is a longer‑term process.

Administrator Russ Baron described operational impacts tied to turnover and vacancies, especially among trades inspectors for plumbing, HVAC, electrical, elevator and related safety work. Baron said turnover for inspectors has at times ranged from 12% to 67% depending on program and year, causing vacancies of up to eight months in hard‑to‑staff rural areas and raising overtime pressures on remaining staff. He asked for targeted pay adjustments and noted the requested increases would come from dedicated funds generated by licensing fees, not general fund dollars.

DOPL’s FY2026 requests described in the presentation include an average 95¢ per hour increase across 92 FTP for inspector positions in the Bureau of Building, Construction and Real Estate and a one‑time request of $900,500 in dedicated funds for vehicle replacements with line items: $648,000 for 16 Ford F-150s; $165,000 for five Ford Escapes; $44,500 for one Ford F-250; and $43,000 for one Ford Explorer (the Escape and Explorer are for the Bureau of Occupational Licenses). The agency also requested $146,401 one‑time dedicated funds for hardware recommended by the Office of Information and Technology Services.

McGurkin noted the agency is implementing fee reductions, fee holidays and legislation to manage ending balances; officials said they will continue to provide the committee with the DOPL plans attached to the audit and the February packet. Auditors and DOPL staff emphasized that balancing cash reserves and projecting licensing cycle revenue will take time and careful oversight.

Ending: DOPL staff offered to provide committee members a detailed breakdown of individual board cash balances and the division’s plan to bring each account within the audit’s recommended range.