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Budget office: BRN fund healthy with more than a year of reserves; union urges use for NEC pay
Summary
A DCA budget analyst told the board that the registered nursing fund ended FY 2024–25 with roughly $76 million (about 13.5 months reserve) and projects reserves to grow to about $87.5 million (15.2 months); SEIU urged the board to use a portion of reserves to improve nursing‑education consultant pay to address a 36% NEC vacancy rate.
A Department of Consumer Affairs budget analyst told the California Board of Registered Nursing on Nov. 19 that the board’s special fund is healthy and growing, while union representatives urged the board to invest in staff wages to address persistent vacancies.
Budget snapshot: Luke Fitzgerald, a DCA budget analyst, presented the board’s fund‑condition statement. FY 2024–25 actuals included an adjusted beginning balance of about $27.5 million, roughly $80 million in revenues (including about $23–23.5 million from initial license fees and roughly $52 million from renewals) and just under $62 million in expenditures. The board closed that year with a reserve of approximately $76 million (about 13.5 months). Projected current‑year figures show a fund balance of roughly $87.5 million (about 15.2 months reserve), although Fitzgerald noted future pressures could arise from salary and retirement cost adjustments.
Union and staffing concerns: SEIU Local 1000’s bargaining‑unit chair Bobby Roy urged the board to use reserves to increase Nursing Education Consultant salaries and said the union stands ready to partner on a compensation request under state human‑resources guidance. Roy cited the board’s vacancy rate (Melby had earlier reported an 8.2% vacancy in one EO presentation; SEIU and later discussions at EIIC noted NEC vacancies as a longer‑standing recruitment issue). Board members acknowledged the vacancy issue and discussed limits on the board’s ability to set salaries, which are subject to CalHR and collective‑bargaining rules.
Why it matters: The fund’s multi‑month reserve provides fiscal flexibility for a fee‑supported board, but any targeted compensation changes require coordination with DCA, CalHR and bargaining units. Fitzgerald cautioned that personal service increases and pension adjustments are the main drivers of future expenditure growth and that unknown future legislation or events could change projections.
Next steps: Budget office will continue to monitor revenues and expenditures and provide monthly updates. SEIU reiterated its recommendation that BRN and DCA pursue an employee compensation request if additional funding can be identified.
