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DCA budget office briefs nursing board on fund condition, vacancy drill and revenue projections
Summary
State budget staff told the Board of Registered Nursing May 28 the RN fund is in a stronger condition than earlier post‑COVID years but noted May Revision cuts and vacancy‑reduction drills that will affect the upcoming budget year.
Representatives from the Department of Consumer Affairs budget office briefed the Board of Registered Nursing May 28 on the board’s fund condition, revenue projections and the effect of statewide budget reduction instructions.
Luke Fitzgerald and colleagues presented a fund‑condition statement showing the board’s fiscal year 2023–24 ending balance and a projected current‑year balance. They said the board began 2023–24 with a roughly $77 million beginning balance, collected about $77 million in receipts (about $23 million from initial license fees and $51 million from renewals) and ended the year with approximately $27 million in reserve (about 5.9 months of operating reserves). For the current year, the presentation projected roughly $78 million in revenues, a loan repayment to the general fund and an estimated year‑end balance of roughly $80.6 million (about 14.8 months in reserve) before accounting for any May Revision or other adjustments.
Budget staff also described the May Revision and statewide budget letters that will affect boards across state government, including a vacancy‑reduction directive and a government‑efficiencies reduction. Staff said the board’s appropriation will show a projected $2.1 million reduction under the May Revision and that budget letters require departments to examine vacancies and position eliminations; DCA indicated the board’s vacancy drill required elimination of a portion of existing vacancies.
Budget office presenters explained methods used to build the governor’s budget (statewide budget letters, budget change proposals and legislation) and described the “months in reserve” metric used to judge fund health. They noted state law limits special‑fund reserves to 24 months and that the budget office includes a conservative 3% growth factor for future personal‑service costs (salary and retirement adjustments) in projections.
Board members asked about the reserve level, the drivers of prior year endorsement spikes and enforcement costs (attorney general and administrative hearings). Staff said endorsement receipts rose after the pandemic; enforcement and AG costs are budgeted separately and can be a significant line item. Board members and staff discussed the board’s ability to recruit and retain nursing education consultants (NECs) and recognized that NEC salary ranges are governed by CalHR and collective bargaining processes. The presentation was informational; no board action was taken.
