Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Finance topic
No spam. Unsubscribe anytime.
Department of Commerce & Insurance to reassign small regulatory programs to board staff to help close deficit
Summary
The department plans to assign administration of three small regulatory programs to the board’s executive director team, allocating up to 25% of Jen Binkley’s time and projected annual savings for the board of about $60,000; the board’s FY2025 deficit was reported as $77,868.
The Tennessee Department of Commerce and Insurance told the board it will assign administration of three small regulatory programs to the board’s executive‑director team beginning in August as part of a plan to reduce the board’s operating deficit.
Assistant Commissioner Reid Witcher briefed the board on the proposal and underlying financial context. The board’s FY2025 results through June 30 showed a deficit of $77,868, the executive director said. Department staff proposed dedicating up to 25% of Executive Director Jen Binkley’s time, up to 10% of licensing staff time (Karen) and up to 25% of program staff time (Laura Pecunius) to administer three small programs that together have about 700 licensees and historically low customer‑service volumes. The department estimated annual savings to the board of about $60,000 from the reallocation.
Witcher said the reassignment would create operational efficiencies and would not reduce the board’s authority: the board retains budget authority and the power to hire its executive director. The proposed reassignments are intended to avoid raising fees or cutting services to licensees as a way to address the deficit. Witcher said the department will continue to expect Jen Binkley to spend at least 75% of her time supporting the board and that the department supports her continued engagement in NASBA and other national groups.
Board members asked about monitoring for scope creep and the potential need to restore full time on the accountancy board if workload grows. Witcher said the department would monitor the arrangement and is prepared to make adjustments if necessary. He also noted the state has a new board (bail bondsman licensing) with a January 1 start date that will require staff resources.
Why it matters: The plan is a departmental administrative step to move the board toward a balanced budget without immediate fee increases or service reductions. Board members asked for mechanisms to monitor workload and to ensure the executive director remains available for high‑priority board matters.
Clarifying details: The department cited an FY2025 budget deficit of $77,868 for the Board of Accountancy and estimated an annual savings of approximately $60,000 from the proposed staff time reallocation. The three small programs combined received about 122 customer calls/emails and 40 new initial applications during the previous fiscal year, the department said.
