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Board hears budget update: months in reserve growing, transaction fee to shift to applicants in March
Summary
Assistant Executive Officer Mark Ito presented a fiscal update showing the board’s fund condition is structurally imbalanced (revenues exceed expenditures), months in reserve are growing, and staff expect to begin passing a 2.3% transaction fee to applicants in March to reduce costs absorbed by the board.
Mark Ito, assistant executive officer, delivered the board’s fiscal update at the Feb. 7 meeting, reviewing three documents: expenditure projections, revenue projections and the fund condition. Ito said the board’s projected fiscal‑year revenue for 2024–25 is approximately $24.7 million while total expenditures are projected at about $19.1 million, which results in roughly $5 million more revenue than expenditures and growing months in reserve.
Ito explained the board participates in incremental state budgeting and described recent budget “drills” (budget letters referenced as 2420 and 2424) that required adjustments. He reported a reduction of about $500,000 to the board’s appropriation when limited‑term funding for three education positions ended; the board retained staff by reclassifying positions, which increased expenditures and reduced projected year‑end savings to approximately $35,000.
To reduce costs the board plans a set of measures: beginning with the next Breeze release in March, the 2.3% credit card/transaction processing charge previously absorbed by the board will be passed to applicants and licensees; Ito estimated that change will save roughly $100,000 from March to fiscal year end and approximately $300,000 over a full fiscal year. The board will also explore in‑year adjustments to its Attorney General and Office of Administrative Hearings allocations if line items are overspent.
Ito and board staff said a fee audit or study will be considered to address structural imbalance and growing months in reserve; staff noted the board historically saved about $1.5 million per year but that level of savings has decreased. The executive officer and assistant EO said staff will present options in future meetings for fee structure changes and budget change proposals if needed.
During public questions, a board member asked whether the board would adopt license‑renewal relief similar to a Registered Nursing board action for licensees in the Los Angeles area; Ito said the department‑wide relief (deferral of renewal payment for one year) is in Breeze and the licensing manager has implemented it. No budget appropriation vote occurred at the meeting; updates were informational and staff‑driven next steps were recorded.
