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PA board budget office projects reserves to decline; enforcement costs drive augmentations
Summary
DCA budget staff told the California Physician Assistant Board that the board’s fund condition shows a multi‑year decline in months in reserve and that rising enforcement costs are the main driver of projected expenditure increases. Staff said the budget remains solvent now and will be monitored monthly.
The California Physician Assistant Board on April 21 received a fund‑condition briefing from Department of Consumer Affairs budget staff that showed the board currently has multiple months of reserves but projects a decline in later years as expenditures rise.
Budget analyst Andrew Trudy and budget manager Suzanne Balchas presented the board’s FM8 expenditure and revenue projections, telling members the board is estimating $1,511,000 in personnel services and about $2,334,000 in operating expenses for a total of about $3,795,000 in projected expenditures for the year. Trudy said the end‑of‑year revenue projection is about $3,188,000 against an estimated revenue budget of $3,013,000.
“This has created a surplus of about $1,000, or under 1%,” Trudy said, adding that the board’s beginning balance reflected prior‑year adjustments and that months in reserve are expected to decline over the five‑year projection.
Why it matters: staff told the board that one of the principal drivers of higher projected expenditures in out years is enforcement‑related costs and ongoing personnel cost increases (salary, retirement rates). Balchas said the fund condition does not include potential future increases in enforcement spending, which could create additional pressure on the fund.
Board members pressed staff on whether planned or expected fee increases were included in the projections. Trudy and Balchas confirmed fee increases were not included: “It is not included any fee increases,” Balchas said. Board members were told that the Budget Office will continue to monitor revenues and expenditures and provide monthly projection reports as fiscal months close.
The presentation noted two specific augmentations requested earlier in the fiscal year to address enforcement costs; a board member asked for clarification of amounts described in the packet as $193,000 and $375,000, and staff confirmed those augmentations were related to increased enforcement and allied‑health case costs.
The Budget Office advised the board that months in reserve will generally trend downward under the model used (constant revenues, 3% ongoing expenditure increase to reflect salary and retirement adjustments) and that any future legislation or unanticipated events could increase resource needs. Staff said they will continue to report to the board monthly and work with board executive staff on resource needs.
The board did not take a formal vote on the report. The Budget Office will return monthly with updated projections.
