DOPL budget hearing highlights audit findings, excess cash balances and inspector pay request

The Division of Occupational and Professional Licenses (DOPL) appeared before the Joint Finance‑Appropriations Committee on Feb. 6 for its budget hearing. Agency leaders and legislative auditors described ongoing work to correct substantial cash balances in board accounts, implement a new licensing system and recruit and retain field inspectors.

Analysts and the DOPL administrator said the division now comprises 45 boards and commissions and that DOPL manages licensees and revenue for the consolidated entity. Kellen McGurkin, budget and policy analyst, told the committee the organization historically consolidated 11 agencies into DOPL after passage of House Bill 318 in 2020; the slide deck presented by staff said the division oversees roughly 200,000 licensees within 45 boards as of July 2024. Administrator Russ Baron later said the number of licensees is rising and described the total as "creeping up now more towards almost 300,000 licensees." Both statements were made on the record.

Audit findings and cash balances: April Renfro of Legislative Audit summarized recent audit work and open findings. The remaining open finding centers on boards' cash balances: auditors use a reasonableness band tied to five‑year rolling averages of expenditures and flagged boards with balances substantially above or below that range. Renfro described the range as roughly 125% (upper) and 30% (lower) of annual expenditure‑based targets; DOPL has submitted multi‑year plans and reports to address those excess balances, and the division is implementing fee reductions and fee holidays to lower reserves.

DOPL's requests and turnover: The division requested ongoing dedicated funding of $222,000 to increase pay for inspector positions in the Bureau of Building, Construction and Real Estate — an average increase of $0.95 per hour across 92 FTEs — citing high turnover and vacancies; exit interviews identified pay as a primary turnover reason. Administrator Baron requested an additional targeted increase for inspectors beyond the CEC approved earlier in the meeting, saying the bureau's plan called for "another 2 and a half percent" and a starting wage increase from $27.50 to $28.60 per hour. Baron told the committee the division had recorded turnover rates ranging from 12% to 67% depending on program and that some vacancies remained open up to eight months.

Capital and one‑time requests: DOPL requested $900,500 in dedicated, one‑time funds for vehicle replacements: 16 Ford F‑150s ($648,000), five Ford Escapes ($165,000), one Ford F‑250 ($44,500) and one Ford Explorer ($43,000). The division also requested $146,401 in one‑time funds for hardware recommended by the Office of Information and Technology Services.

Licensing system implementation and efficiency: Administrator Baron reported phased implementation of a new licensing information system with releases in July and November of the previous year. Baron said the system allows applicants with multiple licenses to submit documents once and that staff have been able to provide more same‑day decisions on complete applications. The administrator described expected longer‑term efficiency gains and said DOPL is starting to cross‑train licensing staff across boards.

Auditor and committee follow‑up: Audit staff said they will continue follow‑up on DOPL's plan to reduce excessive cash balances and that resolving fee‑structure issues will likely take more than one legislative year. Committee members asked for the division's cash‑balance plans and were told a detailed plan and the auditor's report are in SharePoint; the administrator agreed to provide or re‑send the plan to committee members.

Why it matters: DOPL's cash balances and fee structure affect the amount the division can collect from licensees, the pace of fee reductions or holidays, and the division's ability to fund staffing and capital needs without using general fund dollars. Inspector staffing affects the division's inspection capacity and timeliness, with implications for public safety and business operations.

Ending: Committee members requested more detailed cash‑balance analysis from the administrator, and auditors said they will continue to monitor the division's corrections. DOPL said it will continue to pursue fee adjustments and implementation steps for the licensing system and will provide the committee the requested plans and documentation.