Professional Fiduciaries Bureau budget shows modest reserves as state seeks departmental reductions

Department of Consumer Affairs budget staff presented the Professional Fiduciaries Bureau’s fund condition and expenditure projections at the Sept. 11 advisory committee meeting, noting the bureau faces potential cost pressures if additional resources are needed.

A DCA budget analyst said the Bureau began the prior year with a small reserve, collected roughly $841,000 in receipts in 2023–24 (including $141,000 from initial fees and $664,000 from renewals), and closed the 2023–24 year with a reserve balance of about $290,000 (three months in reserve). For the 2024–25 governor’s budget the Bureau’s authorized expenditures and direct draws totaled about $1,192,000, leaving a projected fund balance of just over $276,000 (about 2.7 months in reserve).

DCA deputy director (board and bureau relations) further described the broader context: the Department of Finance issued budget letter 2420 (vacancy savings/position elimination) and budget letter 2424 (a 7.95% reduction target across departments) as part of statewide exercises to address a budget deficit. DCA has been preparing position-by-position justifications and requested exclusions as it works toward a reduction plan that it will submit for approval.

Budget staff noted key drivers that could increase future expenditures, including salary adjustments, employee compensation and retirement rate adjustments; the budget office also conservatively included a 3% ongoing expenditure increase in out-year projections. The Bureau was reminded that any future legislation or unanticipated events could create additional cost pressures on the fund.

The budget office committed to ongoing monitoring and monthly expenditure projections and to keeping the Bureau informed if additional resources are needed. Committee members asked questions about the fund condition and the budget presentation; no action was taken at the meeting regarding budget changes.