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Board hears budget office: fund projected to revert about $165,000; months in reserve decline in out-years
Summary
DCA budget staff told the Osteopathic Medical Board on Feb. 13 that the board projects a reversion of roughly $165,000 for the current fiscal year and expects months in reserve to decline in the out-years due to expenditure increases outpacing projected revenue.
Budget analyst Kirsten Cox and budget manager Harmie DeFilippo of the Department of Consumer Affairs budget office presented the board's expenditure projections and fund condition statement during the Feb. 13 meeting.
Cox said the board began the prior year with a base balance around $4.6 million, collected roughly $3.94 million in revenues for fiscal year 2023–24, and ended 2023–24 with a reserve balance of about $5.05 million (about 14.7 months in reserve). For fiscal year 2024–25 she reported projected revenues of approximately $3.836 million and projected expenditures of roughly $4.133 million, producing a projected fund balance near $4.8 million (about 12.3 months in reserve) and an estimated reversion of about $165,000 (a reversion percentage of about 3.84%).
Board members asked why months in reserve decline in the out-years despite current reserves. Harmony (Harmony DeFilippo) explained the decline reflects a structural imbalance in which projected revenues are lower than projected expenditures over the out-years; personnel-service adjustments (salary, benefits, retirement) and recently authorized positions also drive future expenditure increases. Executive staff noted a planned regulatory fee package seeking additional revenue that could change future projections.
Budget staff emphasized the fund condition is a snapshot that is updated monthly and that legislation or unanticipated events could affect the outlook. The budget office will continue monthly monitoring and reporting to the board.
