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Physician Assistant Board hears fund-condition briefing; months in reserve projected to decline
Summary
Department of Consumer Affairs budget staff told the California Physician Assistant Board on April 21 that current-year projections show a narrow surplus but projected reserves decline over the next several years unless spending or revenue assumptions change.
At its April 21 meeting, the California Physician Assistant Board received a fund-condition briefing from the Department of Consumer Affairs budget staff outlining current-year revenue and expenditure projections and a five-year outlook.
The budget office presented an FM8 projection that estimates $1,511,000 in personnel services and about $2,334,000 in other operating expenses for a total estimated expenditure of about $3,795,000 this fiscal year, creating a surplus of “about $1,000 or under 1%,” Andrew Trudy, budget analyst, told the board. The office projected year‑end revenues of about $3,188,000 against an estimated revenue budget of $3,013,000.
The presentation placed the board’s adjusted beginning balance for the current fiscal window at roughly $3,920,000 and projected a fund balance of about $3,135,000 by year‑end — a level the budget office said represents roughly 11.3 months in reserve. The budget office cautioned that months in reserve decline in out years under the office’s baseline because revenues are projected to remain flat while personnel and retirement costs are increased by an assumed ongoing 3% escalation.
Why it matters: the board’s reserves provide a financial buffer for licensing, enforcement and other functions. Board members flagged enforcement costs as a key pressure point; the budget office said enforcement expenditures and personnel-cost adjustments are the main drivers of projected increases.
Board members pressed staff on assumptions and contingency plans. “It is not included any fee increases,” Trudy said when asked whether projected revenues included prospective fee changes. Vice President Juan Armenta asked staff to distribute any data they plan to use for August deliberations well ahead of time so the board can review it. Trudy said the budget office will continue to provide monthly expenditure-projection reports.
Board members also asked about two augmentations referenced in the packet: roughly $193,000 described as Attorney General (AG) augmentation to cover enforcement‑related legal costs, and about $375,000 reported as additional augmentation tied to increased allied‑health enforcement activity. Trudy explained both augmentations were requested this year to offset higher enforcement spending.
No formal board action was taken beyond accepting the briefing and requesting continued monthly updates from the budget office.
Looking ahead: budget staff said any future legislation or significant unanticipated events could increase pressure on the fund and that the office will keep the board informed of changes to assumptions or May Revise updates.
