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Board staff present fund projection showing roughly 12 months in reserve; budget office flags ongoing cost pressures
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Summary
Department of Consumer Affairs budget staff told the Physician Assistant Board the board's fund condition shows about 12.3 months in reserve for FY 24'25 but projects decreasing months in reserve in out years due to assumed 3% annual expenditure growth and personnel cost increases.
Department of Consumer Affairs budget office staff presented the board's fiscal projections and a five-year fund condition on Aug. 15, reporting healthy reserves now but cautioning about future cost pressures.
Andrew Trudy, associate budget analyst, and Suzanne Alquist, budget manager, told the board that Fiscal Month 11 (FM 11) projections and current augmentations yield estimated personnel costs of about $1,505,000 and operating expenses of about $2,245,000 for a total projected expenditure near $3.7 million. Trudy said the projection shows an end-of-year revenue estimate of roughly $3.205 million against expenditures of about $3.013 million, producing a surplus of about $96,000 or approximately 2.5% on the immediate projection in the packet.
Trudy reviewed the fund-condition statement, which the budget office presented as a five-year snapshot. Staff reported a prior-year beginning balance (FY 23'24) they described at about $4.2 million and a current-year beginning balance of about $3.92 million. Using the FM 11 projections and statutory augmentations, staff said the fund-condition estimate for the current year yields a projected ending balance of about $3.46 million, or roughly 12.3 months of operating reserve.
Budget office staff cautioned that the projections assume a 3% ongoing increase in expenditures to account for salary and retirement adjustments and that the fund condition does not include potential increased enforcement expenditures that could raise costs in later years. Staff said they will provide monthly expenditure-projection reports as fiscal months close and will continue to monitor solvency and communicate with the board's executive staff.
Board members expressed appreciation for the relatively strong reserve level. No formal board action on the budget projections was taken during the meeting.
