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DCA budget office presents board fund condition; projects thin reserves without changes
Summary
DCA budget office staff reviewed the California Board of Occupational Therapy’s fund condition and revenue projections, showing that current expenditures and projected salary and retirement increases create ongoing pressure on reserves and noting the board may need fee or statutory changes to remain solvent.
DCA Budget Office analysts presented the board’s expenditure and revenue projections on June 13 and told members that personal‑service cost increases and other unanticipated events are the primary drivers of projected expenditure growth.
Kayla Van Lint, a budget analyst with the DCA Budget Office, reviewed the board’s fund condition and revenue documents before the board. She said the board had a beginning 2023–24 balance of $1,489,000, collected $3,173,000 in revenues that year (including $466,000 from initial license fees and $2,497,000 from renewals), and expended $3,157,000, leaving about $1.5 million (roughly 5.1 months) in reserve. For 2024–25 the office projected revenues of about $3,325,000 and total expenditures of approximately $3,525,000, leaving a projected balance near $1,305,000 (about 4.6 months in reserve).
Van Lint and colleagues told the board they include a conservative ongoing 3% annual increase in expenditures on the fund‑condition statement to account for salary and retirement rate adjustments. They also explained how DCA provides centralized services to boards through a pro rata methodology — allocating shared costs such as HR, legal, call center and investigations based on drivers like authorized positions and call volumes.
Budget office role and cautions The budget office emphasized that the fund condition is a snapshot in time. Staff cautioned that any future legislation or unanticipated events could create additional cost pressure and that the board should plan accordingly. "Any future legislation or unanticipated events could result in the board's need for additional resources, which would create cost pressure on the fund," Van Lint said.
Board engagement Board members asked for clarifications about the fund‑condition assumptions and whether other revenue sources (for example probation‑monitoring fees) were in place; staff replied that probation‑monitoring fees were not currently in place and may require statutory authority. DCA staff said they would continue to monitor the fund condition and work with board executive staff to identify savings and any further actions required.
Ending Budget staff closed by offering to answer questions and said they will continue to monitor the fund and keep lines of communication open with board staff as rulemaking and other budget decisions proceed.
