Professional Fiduciaries Bureau projects $844,000 reserve; public commenter warns fund could be depleted by 2030

Brendan Vu, a budget analyst with the California Department of Consumer Affairs, told the Professional Fiduciaries Bureau Advisory Committee on Sept. 10 that the bureau is projected to close fiscal year 2024–25 with a reserve balance of about $844,000, equivalent to roughly 8.3 months of operating funds.

The fund condition statement Vu presented showed a beginning balance for 2024–25 of about $301,000, receipts of approximately $1,288,000 in the prior year (with about $223,000 from initial license fees, $1,000,000 from renewals and $65,000 from citations/fines), and $745,000 in expenditures that included $69,000 in statewide pro rata and pension payments. For the current projection Vu described, revenues for 2024–25 were forecast at just over $1.2 million (about $171,000 from initial license fees, $998,000 from renewals and $60,000 from citations and other receipts).

Vu told the committee the budget office applies a conservative 3% ongoing escalation to expenditures to account for personnel and retirement cost adjustments and cautioned that “any future legislation or unanticipated events could result in the bureau’s need for additional resources,” increasing cost pressure on the fund.

Why it matters: the bureau’s fund underwrites licensing, enforcement and other bureau functions; sustained negative cash flow could require fee adjustments, legislative remedies or reductions in services.

During public comment, James Counts, CPA, CTFA, reviewed the fund condition and told the committee his reading of the materials shows the bureau’s expenditures rising while revenues remain roughly flat. Counts said those trends, if sustained, “appear that roughly before the end of the calendar year 2030, the bureau will run out of funds.” He cited a projected 63% increase in expenditures in the most recent year and an 11% drop in revenue from the prior year in his remarks.

The committee did not take a formal fiscal action at the meeting. Angela Cuadra, program analyst for the bureau, recorded Counts’s request for the bureau to review negative cash flow and possible solutions as an item for future agenda consideration.

Other public commenters urged growth in the number of licensed fiduciaries to increase revenue over time and asked the bureau to provide more granular licensing data to help practitioners refer work within specialties.

The budget office said it will continue to monitor monthly expenditure projections and report updates to the advisory committee as fiscal months close. The committee did not vote on fees, legislation or other budgetary remedies at the meeting.

Ending: Advisory committee members asked no substantive follow-up questions during the presentation. The committee’s next regular meeting is scheduled for Dec. 10, 2025, when the bureau may revisit fiscal projections and any follow-up materials requested for a future agenda.