BHGS fund condition shows months in reserve declining; bureau to pursue fee study

The Bureau of Household Goods and Services reported an estimated fund balance of about $10.4 million — roughly 8.9 months in reserve — for fiscal year 2024–25, budget office staff told the advisory council on May 8.

Ryan Harrington, a budget analyst with the California Department of Consumer Affairs, said the bureau projects approximately $10.9 million in revenue for the current year but expects expenditures to rise toward $12.9 million, driven in part by personnel cost adjustments, employee compensation and retirement increases, and rent and legal referral costs.

Bureau leadership told the council the financial snapshot is a point-in-time estimate that could change because open prior-year invoices and transfers from several special funds are still being finalized. The bureau also noted expected transfers from three funds into the consolidated bureau fund as required by SB 814, and that all remaining transfers should occur prior to July 1, 2026.

Claire Goldstein, deputy chief at the bureau, said the department anticipates a fee study and audit next year as part of SB 814 and the fund consolidation process. The study could recommend fee changes if the bureau’s structural outlook continues toward a deficit as months in reserve decline.

Council members raised programmatic revenue concerns: Steve Weidekamp and others noted moving and storage revenues are sensitive to interest rates and housing-market cycles, while Bert Grimes asked whether the “regulatory fee” line largely represents collectible fines and one-time directory fees; bureau staff confirmed that enforcement citations and the thermal-insulation directory fee inflate some line items and that unpaid citations are being referred to collections.

The bureau will continue tracking projected revenues and expenditures and said it will coordinate with the Budget Office on future resource needs and the design of the fee study.