Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget And Fees topic
No spam. Unsubscribe anytime.
BSIS says fund balance is shrinking; proposes 10% across‑the‑board fee increase
Summary
Budget staff told the Bureau of Security and Investigative Services (BSIS) advisory committee the bureau is drawing down reserves and will propose a 10% licensing fee increase under existing legislative authority to avoid future deficits.
The Bureau of Security and Investigative Services told its advisory committee that its fund balance is declining and that staff will pursue a 10% increase to all licensing fees under an existing fee authority.
Suzanne Balquez, budget manager for the Department of Consumer Affairs' (DCA) budget office, told committee members the bureau closed fiscal 2022–23 with about $6.3 million in reserves, roughly 4.6 months of operating funds. For fiscal 2023–24 the bureau projected more than $18 million in receipts and estimated end‑of‑year reserves near $8 million, about 4.8 months, but longer projections show the balance trending downward.
“Based on the current trajectory, if you project out a few more years, we do go into the red,” Bureau Chief Lynn Jensen told the committee, using the budget presentation to explain why a fee package will be needed. Jensen and Balquez said staff would publish formal regulatory notices and follow the Office of Administrative Law process before any fee change becomes final.
Balquez described the prior fiscal year in detail: a beginning balance of about $5.2 million, roughly $16.8 million collected (about $7.0 million from initial licenses, $8.4 million from renewals and about $1.2 million from citations and other receipts), and expenditures of about $15.7 million including roughly $1.3 million in statewide charges. She said budget act 2024–25 figures are set by the state budget and that the bureau has no projection for the current year beyond what the enacted budget provides.
Committee members were told the bureau has remaining statutory regulatory authority from a 2017 fee audit and is proposing to use that remaining authority to raise fees by 10% across the board. Jensen said the increase would be modest for most licenses (she cited an example that a guard card would rise about $5) and emphasized the package will go through public notice and comment. She advised stakeholders to sign up for BSIS email alerts to track the rulemaking timetable.
Balquez and Jensen answered questions about the bureau's months‑in‑reserve target (6–12 months is the usual goal) and confirmed that the proposed 10% increase is limited to licensing fees; fines and enforcement penalties are not part of the regulatory fee package and would require separate legislative action.
The bureau said it will continue to monitor revenues and expenditures and provide updated fund condition statements after fiscal month close.
Ending: The bureau plans outreach and formal rulemaking; stakeholders will have notice and public comment opportunities once the fee regulation package is filed with the Office of Administrative Law.
