DOPL reports audit findings, cash‑balance plan and inspector pay request as licensing workload grows

BOISE — The Division of Occupational and Professional Licenses (DOPL) told the Joint Finance‑Appropriations Committee on Feb. 6 it is working to resolve an open audit finding about excess cash balances, while asking for targeted pay adjustments and one‑time vehicle and hardware funding to address inspection vacancies and turnover.

Kellen McGurkin, budget and policy analyst with Legislative Services, summarized the agency’s FY 2021–2026 budget trends and noted DOPL was created by House Bill 318 (2020) and consolidated 11 previously separate agencies into one division. McGurkin said DOPL now administers 45 boards and commissions and manages tens of millions in receipts and transfers for individual board cash balances. He reported, based on materials provided to the committee, roughly 200,000 licensees were overseen by the division as of July 2024; Administrator Russell (Russ) Baron later told the committee licensee counts are ‘‘creeping up’’ and are approaching about 300,000 licensees.

McGurkin summarized the division’s finance picture: DOPL is funded entirely by dedicated and federal funds, with the state regulatory fund holding most revenues. The division has been implementing fee reductions and a plan to allow fee holidays and other rule changes to lower ending balances. The fiscal materials attached to DOPL’s packet show receipts that included large transfers from board cash balances (about $50 million in transfers from prior balances and $30 million in licensing revenue in the earlier reported year), and staff said the final reappropriated monies tied to a licensing‑system procurement were expected to be spent in the current month.

April Renfro, a legislative auditor, told the committee the agency’s remaining open audit finding centers on disproportionate cash balances at some boards. The audit uses a reasonableness band (roughly 30% to 125% of a five‑year rolling average of expenditures) to identify boards with too little or too much reserve; auditors said DOPL has provided multi‑year reports showing plans to reduce excess balances and that follow‑up work is ongoing.

Administrator Russ Baron described significant turnover among the division’s inspectors. He said turnover has ranged from 12% to as high as 67% depending on program and year, and that private sector and local governments can offer substantially higher pay. To address recruitment and retention, DOPL requests a FY 2026 ongoing increase of $222,000 in dedicated funds to boost starting pay for inspectors in the Bureau of Building, Construction and Real Estate by an average of $0.95 per hour across 92 FTP. The division also asked for $900,500 in one‑time dedicated funds for vehicle replacements (detailed quantities and costs were provided) and $146,401 in one‑time dedicated funds for recommended hardware from the Office of Information and Technology Services. The FY 2026 request also includes vehicle and equipment line items and a previous transfer exemption (allowing limited transfers between bureaus) that DOPL expects to request for another one to two years.

Baron and staff described the agency’s implementation this past year of a new licensing system, rolled out in phases (initial release July 4 and further release Nov. 4), producing customer‑service and administrative efficiencies such as centralized account management and increased ‘‘same‑day’’ determinations when applicants submit complete documentation. Baron said the system supports cross‑training among staff and will help track revenue and expenditures by board more accurately.

Committee auditors and staff said DOPL provided progress reports and plans in SharePoint and that auditors will continue follow‑up on audit recommendations and cash‑balance remediation. Committee members asked for more granular data on which boards have excessive cash and which boards are running low; Director Baron agreed to provide that package to committee members and staff.