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Bureau projects healthy reserve but PFAC warns fee increases could shrink licensee numbers
Summary
DCA budget analysts projected a 2024–25 reserve of roughly $549,000 and a reversion of about $314,000 from prior year activity. A PFAC advocate urged the bureau to monitor renewals after a recent fee increase to ensure it does not reduce the licensee population.
Department of Consumer Affairs budget analyst Bridal Vu told the Professional Fiduciaries Bureau Advisory Committee on Dec. 11 that the bureau’s 2023–24 beginning balance was a little over $1.1 million and that projected 2024–25 revenues are just over $1.1 million.
Vu said the bureau’s 2023–24 actuals showed roughly $842,000 in receipts (about $141,000 from initial fees, $664,000 from renewals and $37,000 from citations and other revenue) and closed the year with a reserve of about $301,000 (4.1 months). For 2024–25 Vu reported projected revenues of roughly $1,100,000 (about $977,000 from renewals, $117,000 from initial fees and $32,000 from citations/fines) and projected expenditures of approximately $878,000, leaving a projected fund balance of just over $549,000 (about 5.4 months in reserve). Vu cautioned that personnel cost increases and unanticipated legislation could create future cost pressures.
During public comment, Jerry Desmond, an advocate with the Professional Fiduciary Association of California (PFAC), said the association is concerned that the recent increase in licensure fees could reduce the number of active licensees and asked the bureau to monitor whether renewal numbers align with budget projections. "What we're concerned about is that there might be a significant decrease in the license population because of the fee increase," Desmond said.
The committee did not take any budgetary votes at the meeting; staff said the budget office will continue to monitor revenue and expenditure trends and report monthly projections to bureau leadership.
