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Audit flags DOPL cash balances as division seeks pay increases for inspectors
Summary
The Division of Occupational and Professional Licenses (DOPL) briefed the committee on audit findings about excessive cash balances across boards and commissions, outlined a long-term plan to reduce reserves, and requested targeted pay increases and equipment replacements for inspectors amid high turnover.
The Division of Occupational and Professional Licenses (DOPL) told the Joint Finance-Appropriations Committee that it is addressing open legislative audit findings related to unusually high cash balances in some boards and commissions while requesting targeted increases to recruit and retain inspectors.
Kellen McGurkin, budget and policy analyst for the Legislative Services Office, summarized DOPL’s structure: created by House Bill 318 (2020), DOPL consolidated previously separate agencies into three professional bureaus and an administrative bureau and now oversees about 200,000 licensees and 45 boards and commissions. McGurkin noted the division is fully funded with dedicated and federal funds and pointed to $83 million in receipts and transfers in recent years, including $50 million moved from prior board cash balances and $30 million in new licensing revenue. He said DOPL is implementing fee reductions and legislation to allow temporary fee holidays to bring individual board cash balances into a legislative reasonableness range.
April Renfro of Legislative Audit described current audit work and said open findings have narrowed to a single prior issue focused on cash balances. She explained the committee’s reasonableness bands — roughly 30% to 125% (and using a 5-year rolling average) — and said DOPL has produced reports about how it intends to reduce excessive balances. "They have been for the last two years providing us with a report of their analysis of those cash balances and how they intend to reduce those cash balances," Renfro said.
Administrator Russ Baron told the committee that DOPL is managing growth in certain regulated industries and that some boards had substantial balances prior to consolidation. Baron described operational steps and asked for additional targeted funding to address inspector turnover and vacancies. For FY2026 DOPL requested $222,000 ongoing in dedicated funds to increase pay for inspector positions in the Bureau of Building, Construction and Real Estate by an average of $0.95 per hour across 92 FTE to reduce turnover and vacancies. The division also requested one-time dedicated funds: $900,500 for vehicle replacements (detailed vehicle makes and counts were provided to the committee) and $146,401 for hardware recommended by OITS.
Baron said turnover in trades-inspector positions has ranged widely by program and year, sometimes hitting double digits or higher, leading to extended vacancies and overtime for remaining staff. He urged that the requested adjustments be considered in addition to any CEC increases recently approved by the committee, noting market differentials with private-sector and municipal pay.
Why it matters: DOPL’s cash balances determine how boards set fees and whether dedicated funds are available for compensation, equipment and operations without general-fund support. Auditors and DOPL said the solution requires multi-year adjustments, fee policy tools and continued oversight.
Ending: DOPL and auditors told the committee they will continue reporting on cash balances and recommended fee or rule changes; staff and committee members asked for follow-up analysis and written plans showing where balances are growing and which boards need reductions or increases.
