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Board reviews fund condition, considers temporary fee reductions to lower reserve
Summary
Board staff and Department of Consumer Affairs budget staff presented projections showing the board's reserve would exceed the 24‑month statutory cap; staff outlined two scenarios for temporary fee reductions and said regulations may be used without changing statutes, subject to legal review.
Board staff and representatives from the Department of Consumer Affairs briefed the Board of Behavioral Sciences on March 14 about the board’s reserve balance and options to reduce an approaching statutory overage.
Steve Sodergren, the board’s executive officer, summarized a prior auditor’s fee study and said revenue growth has outpaced projected expenditures, producing a reserve projected to reach about 25.7 months under current fees—exceeding the Business and Professions Code cap that the board must address. Budget staff told members the board has two initial options under review: a 24‑month reduction scenario and a 48‑month reduction scenario. Both scenarios under discussion would reduce multiple fees (applications, renewals) by roughly 50% for a defined period; the 24‑month scenario would lower the reserve to about 21.5 months by fiscal year 2027–28 and the longer scenario to about 17.5 months by fiscal year 2029–30.
Matt Nishimi from the DCA budget office and other budget staff said the board may be able to adopt temporary fee reductions via regulation under Business and Professions Code section 128.5, which staff and legal counsel read to permit fee reductions ‘‘notwithstanding any other provision of law.’’ Counsel said regulators would try a regulation route first and pursue statutory amendments if OAL or DCA legal review requires legislative change. Board members discussed targeting reductions to fees that would most reduce barriers for applicants, such as entry‑level or exam fees, and asked staff to present a package with timing and implementation details at the May meeting.
Public commenters and board members urged careful planning to avoid a sudden ‘‘sticker shock’’ when temporary reductions expire, suggested focusing relief on entry‑level fees to address workforce barriers, and asked staff to ensure the loan to the General Fund and timing of any returned funds be reflected in the projections.
Staff will return in May with draft regulatory language, revised projections, and options that specify which fees and which periods would be reduced.
