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DCA budget office briefs PT board on fund condition, pro rata charges and state budget letters
Summary
The Department of Consumer Affairs budget office explained how the Physical Therapy Board’s special fund and centralized pro rata charges work, outlined two Department of Finance budget letters that could affect board appropriations and described the metrics used to track fund health.
Department of Consumer Affairs budget staff gave a detailed briefing on Dec. 5 to the Physical Therapy Board of California about the annual state budget process, pro rata charges for shared services, and recent Department of Finance instructions that could affect the board’s appropriation.
DCA budget staff explained boards operate from special funds financed primarily by license and renewal fees and described commonly used metrics including “months in reserve,” which compares ending fund balance to annual authorized expenditures. Staff said the board currently plans a conservative 3% increase for expenditure projections (to reflect salary and benefits growth) and had previously planned for an 8% reduction in response to statewide budget guidance.
Two Department of Finance budget letters were discussed: Budget Letter 24‑20, which instructs vacancy savings and position eliminations to reduce state workforce and costs; and Budget Letter 24‑24, a government efficiencies reduction letter that provides instructions related to the Budget Act control section reductions. Budget office staff said those letters are under review with Finance and specific impacts will be communicated once finalized.
Budget staff described how centralized DCA services are charged to boards: some charges scale to authorized positions (human resources, facilities, outreach), while some IT or transaction costs are assessed on usage. Division of Investigation charges use a two‑year roll‑forward method to estimate enforcement costs, staff said, which helps smooth year‑to‑year enforcement volatility. Invoiced costs from external entities such as the Attorney General or Office of Administrative Hearings must be paid within the fiscal year and can require an augmentation if they exceed a board’s appropriation.
Board members asked granular questions about encumbrances, May revise adjustments and the mechanics of pro rata. The budget office staff said fund condition statements and monthly projections are used to monitor year‑to‑date spending and revenue, and that boards should review fund reports regularly to meet fiduciary responsibilities. The board did not take a vote on budget items at the meeting.
