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DCA: Professional Fiduciaries Bureau shows roughly a year in reserve but faces long‑term cost pressures
Summary
A DCA budget analyst told the Professional Fiduciaries Bureau Advisory Committee the fund currently holds roughly 12–13 months in reserve but warned personnel costs and future legislation could increase expenditures; public commenters urged fee changes and other fixes to avoid future shortfalls.
Brendan Vu, a budget analyst with the Department of Consumer Affairs, told the Professional Fiduciaries Bureau Advisory Committee on Dec. 10 that the bureau’s fund condition shows roughly a year of reserve but that personnel adjustments and any new legislation could create long‑term cost pressure.
"The bureau started with a beginning base budget of a little over $1.1 million," Vu said during his slide presentation, and he summarized prior‑year actuals, current‑year revenue projections and projected expenditures. Vu said the budget materials show a prior reserve balance (end of 2024–25) and a projected fund balance for 2025–26 that the budget office will continue to monitor as fiscal months close.
The budget office’s presentation noted factors likely to increase future expenditures: general salary increases, employee compensation and retirement rate adjustments, and conservative built‑in escalation assumptions. Vu also told the committee that any future legislation or unanticipated events could require additional resources and place new cost pressure on the fund.
Members of the public and industry stakeholders urged faster, concrete action to shore up revenue. James Counts, a CPA and certified trust and fiduciary advisor, said the most recent projections show expense growth outpacing projected revenue increases and recommended legislative and administrative options, including modest annual CPI‑based fee adjustments and examining department overhead charges that flow to the bureau.
"Expenses are going up a little over $50,000, but revenue is projected to only be going up less than $21,000," Counts said, arguing the bureau needs structural changes to avoid a future shortfall.
Committee members did not take formal budget‑setting action at the meeting; Vu said the budget office will continue monthly monitoring and communication with the program manager.
The committee approved routine meeting minutes earlier in the session and scheduled its next meeting for March 11, 2026, where budget topics could be revisited.
