DCA reorganization briefed; budget office projects board fund balance with no immediate fee increase

At its meeting the California State Board of Optometry received an update from the Department of Consumer Affairs (DCA) on the governor's proposed reorganization and a presentation from the state budget office on the board's fund condition.

DCA reorganization: Leslie Barnby of the Department of Consumer Affairs briefed the board on the governor's reorganization plan to split the current Business, Consumer Services and Housing Agency into two agencies: a California Housing and Homelessness Agency and a Business and Consumer Services Agency. If approved, the new Business and Consumer Services Agency would house the Department of Consumer Affairs and several boards, including the Board of Optometry. The reorganization plan was delivered to the Little Hoover Commission on April 4, 2025, which begins an approximately 90‑day review including public hearings and a report to the governor and Legislature. Barnby said the board will be kept apprised as the process proceeds.

State telework executive order: Barnby also reiterated that a March executive order from the governor requires state agencies to modify hybrid telework policies so employees work in office four days per week beginning July 1, 2025. DCA is working with programs to identify additional space and to implement CalHR guidance and will advise boards on any further direction.

Budget/fund condition: Julian Lux, budget analyst with the GCF Budget Office, presented the board's fund condition and projections. Using actual fiscal data through month 8, Lux said the board began the year with a budget of approximately $3.8 million and is projected to spend roughly $3.2 million in 2024–25, leaving an estimated fund balance of about $3.05 million (approximately 8.5 months in reserve). The projection includes conservative personal services increases and static revenue assumptions in out years. Lux noted the board projected a reversion of roughly $937,000 in the prior year and that any future legislation or unexpected events could affect the fund. The Budget Office recommended continued monitoring and monthly updates to the board.

Board response and context: Board members thanked the presenters and noted that while current projections did not justify immediate fee increases, the statutory fee ceilings are outdated. The board's subsequent actions on the sunset responses included asking the Legislature to raise fee ceilings to give the board flexibility in the future.

Next steps: DCA and board staff will continue updates on the reorganization process and on telework guidance; the Budget Office will monitor revenues and expenditures and report monthly.