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DOPL auditor flagged cash‑balance issues; administrator asks for targeted inspector pay increases and vehicle replacements
Summary
The Division of Occupational and Professional Licenses (DOPL) briefed JFAC on audit findings about excess board cash balances and requested ongoing funds to raise inspector pay and one‑time funds for vehicles and hardware. Auditors said cash balances have been an open finding; DOPL described steps including fee adjustments, fee holidays and a new
The Division of Occupational and Professional Licenses (DOPL) presented its FY2026 budget request and audit response to the Joint Finance‑Appropriations Committee on Feb. 6, describing efforts to manage high cash balances across licensing boards and requesting targeted increases to reduce turnover in field inspector positions.
Kellen McGurkin, budget and policy analyst with Legislative Services, summarized agency organization and finances: DOPL, created by House Bill 318 (2020), now consolidates former agencies and oversees roughly 200,000 licensees across about 45 boards and commissions (as of July 2024). The agency reported an FY2025 appropriated FTP cap of 267.2 and noted personnel costs represent about 73% of FY2024 expenditures. McGurkin told the committee DOPL is implementing fee reductions and fee‑holiday options and forecasting higher receipts as licensing cycles adjust.
April Renfro, Legislative Audit, described the open audit finding that focuses on excess cash balances held by individual boards and commissions. The audit team said board cash balances that exceed a reasonableness range (roughly 125% of needed reserves on the high side; 30% on the low side using a five‑year rolling average) require action; DOPL has been filing reports on plans to reduce balances and auditors will continue follow‑up. The auditors noted some balances reflect reappropriations tied to a licensing system procurement that will be spent this month.
DOPL Administrator Russ Baron told the committee the division has high turnover among inspector/trades positions (turnover from 12% to 67% depending on program and year), and vacancies can remain as long as eight months for rural posts. To address recruitment and retention, DOPL requested $222,000 ongoing in dedicated funds to raise inspector pay by about $0.95 per hour on average across 92 FTP. The division also requested $900,500 one‑time dedicated funds for vehicle replacements (detailed as $648,000 for sixteen Ford F‑150s; $165,000 for five Ford Escapes; $44,500 for one Ford F‑250; and $43,000 for one Ford Explorer), plus $146,401 one‑time for recommended hardware from the Office of Information and Technology Services. DOPL also cited work to consolidate administrative functions and a new licensing information system implemented in phased releases during 2024.
Committee members questioned the scale and drivers of rising cash balances, whether fees are being shifted among funds, and the timeline for fee changes to affect balances. Auditors and the administrator said fee adjustments can take a year to show effects and that fee holidays and rule changes are being used to correct overly large board balances. The committee asked DOPL to provide board‑level plans already included in the audit SharePoint materials and to meet with members who requested more detail.
No committee vote was taken on the DOPL requests during this meeting; staff and auditors were directed to continue follow‑up and provide requested analyses to the committee.
