Board reviews fee-increase regulation package and fund condition that shows insolvency risk

At the Oct. 16 meeting the Structural Pest Control Board's executive officer presented the status of three regulatory packages and the Department of Consumer Affairs budget office provided an updated fund condition statement.

Executive Officer Sophia said the board is preparing a fee increase regulation package that would raise examination, initial license, renewal and WDO inspection fees to address a structural imbalance and impending insolvency; she said that package will go to legal review and that she hopes to publish with OAL around December. Sophia also reported that a pesticide application notice package is in final approval stages with the Office of Administrative Law and is expected to take effect January 1, and that an examinations package is forthcoming to align the board's rules with federal EPA standards. She said staff plans a town hall in November for public input and outreach via social media and email blasts.

Ryan Harrington, a DCA budget analyst, reviewed the board's fund-condition statement. He said the board began fiscal 2023-24 with about $3 million, collected roughly $5.5 million in revenue, and closed the year with a reserve balance of about $2.6 million (roughly 4.2 months). Projected current-year expenditures (Governor's budget baseline) reduce available reserves to about $1.0 million (1.6 months), and absent fee increases or other changes the board faces insolvency risk in the near term. Budget staff noted personnel-cost pressures (salary increases, retirement adjustments) as upward expenditure drivers and said revenue assumptions (notably WDO filing fees) could change projections.

Sophia said the board will continue outreach, provide updates at PCOC and other upcoming events, and bring public comment materials to a town hall before the package goes to OAL.