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DOPL budget hearing highlights high cash balances, audit finding and inspector pay request
Summary
At a budget hearing, the Division of Occupational and Professional Licenses (DOPL) outlined efforts to manage large cash balances across boards, ongoing audit follow-up, a request to raise inspector pay, and vehicle and hardware replacement requests.
The Division of Occupational and Professional Licenses (DOPL) briefed the Joint Finance-Appropriations Committee on Feb. 6 about audit findings, board cash balances and a budget request that includes pay increases for inspectors and vehicle and hardware replacements.
Kellen McGurkin, budget and policy analyst for Legislative Services, told the committee DOPL now oversees 45 boards and commissions and reported an FTE cap of 267.2. He said the agency’s revenue picture reflects both transfers and new licensing receipts: the slide staff presented showed approximately $83 million in receipts and transfers in fiscal year 2022, composed of an estimated $50 million transferred from preexisting board cash balances and about $30 million in new licensing revenue.
April Renfro of Legislative Audit summarized the agency’s open audit finding: DOPL has an ongoing finding relating to boards’ individual cash balances. The audit flags boards with cash balances materially above or below reasonable ranges — the slide described a reasonableness band based on five-year rolling averages, with roughly 125% (excessive) and 30% (insufficient) thresholds. Renfro said DOPL has provided reports and plans showing how it intends to reduce high balances and that follow-up audits will continue.
Administrator Russ Baron said DOPL is implementing fee reductions and introducing legislation to allow fee holidays to reduce excess board balances; the agency is also working to allocate indirect expenditures more consistently among boards. Baron described high turnover and vacancies for building-construction inspectors, noting turnover ranged from 12% to 67% depending on program and year. To address recruitment and retention, DOPL requested $222,000 in ongoing dedicated funds to increase inspector pay by an average of $0.95 per hour across 92 FTEs (the presentation says this will raise starting pay for those inspectors from about $27.50 to $28.60 an hour and add 2.5% for compression). The agency also requested $900,500 in one-time dedicated funds for vehicle replacements (16 Ford F‑150s at $648,000; five Ford Escapes at $165,000; one Ford F‑250 at $44,500; one Ford Explorer at $43,000) and $146,401 in one-time dedicated funds for recommended hardware.
McGurkin and the auditors told the committee that DOPL has begun fee-reduction and other administrative actions but that reducing high cash balances may take time because fee changes take effect across licensing cycles. The audit team said it will continue follow-up reviews of DOPL’s reports. Baron said some boards’ cash balances predated DOPL’s consolidation and that the division has been cautious about fee changes while implementing a new licensing system and relocating staff. He asked for the committee’s continued support for the division’s plan to bring balances within targets.
Committee members asked for follow-up analyses showing which individual boards hold the largest excess balances and where balances are trending; Baron and staff said they would provide that material to members. The auditors confirmed they will continue to monitor DOPL’s progress in reducing balances and implementing corrective steps.
