DOPL audit flags excess board cash balances; administrator seeks pay and vehicle funds for inspectors

Legislative auditors and the Division of Occupational and Professional Licenses (DOPL) told the Joint Finance-Appropriations Committee that DOPL is addressing an open audit finding about excessive cash balances among its boards while seeking targeted personnel and capital funding for FY2026.

Audit findings and response

April Renfro of Legislative Audit told the committee the most recent open finding, from November 2024, concerns board cash balances and remains open because reducing large reserves requires sustained fee and revenue management. “That report and the agency's plan most recently from this December is attached in SharePoint,” Renfro said, adding that DOPL has provided reports and that auditors will continue to follow up on the agency’s corrective plans.

Kellen McGurkin, budget and policy analyst with Legislative Services, summarized agency finances and noted that the state regulatory fund drives most activity. McGurkin said DOPL collected substantial receipts and transfers in recent years and is implementing fee reductions and “fee holidays” and forecasting future licensing cycles to align revenues with appropriations.

DOPL structure and workload

DOPL, created by House Bill 318 of 2020, consolidated prior agencies and now oversees roughly 45 boards and commissions and about 200,000–300,000 licensees, according to the agency. Administrator Russ Baron told the committee the division handles roughly 145,000 inspections and that turnover in some inspector programs ranged from 12% to 67% in recent years.

Baron said DOPL faces recruitment challenges because private sector and local government pay can exceed state wages for trades inspectors — plumbers, HVAC, electrical and similar inspectors — and vacancies can remain open for months. He described a market-based request to raise starting wages and provide a 2.5% compression adjustment for inspectors, saying the increases would not reach midpoint market rates but would reduce turnover and overtime burdens on remaining staff.

Budget requests and enhancements

For FY2026, DOPL requested ongoing dedicated funds to increase pay for inspector positions (an average of $0.95 per hour across 92 FTP) and one-time dedicated funds totaling $900,500 for vehicle replacements (detailed by vehicle type) and $146,400 for recommended hardware from the Office of Information and Technology Services. The division also requested continued transfer-exemption language to allow limited one-time transfers between bureaus during the fiscal year to realign funding.

Auditors and committee members

Committee members asked about the cause of rising cash balances and whether those funds were being shifted inappropriately. Auditor Renfro said the balances largely reflect fee structures and historical board practices and that reducing excess reserves requires deliberate fee changes and time to let those adjustments take effect. Representative Tanner and other members asked the administrator for a more detailed, board-level breakdown of cash balances and the division’s plan; Baron agreed to provide committee members with the plan and supplemental analysis.

Provenance (transcript evidence)

The DOPL presentation began with the analyst's introduction at transcript time 1855.555 and continued through the auditor and administrator exchange that concluded in the committee’s questions and closing (transcript segments ending around 4520.39).