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Tennessee State Board of Accountancy approves FY27 budget despite projected shortfall
Summary
The Tennessee State Board of Accountancy approved a FY27 budget projecting $1,015,000 in licensing revenue and $1,000,097 in expenditures, counting on reserves to cover a modest operating deficit; board members discussed reserve history and potential fee changes.
The Tennessee State Board of Accountancy on Feb. 3 approved its fiscal year 2027 budget, voting to adopt a plan that projects $1,015,000 in licensing revenue and $1,000,097 in expenditures.
Executive Director Jen presented the four-page FY27 budget and said the revenue projection excludes case-and-complaint income and is based on increased CPA exam volume and a newly available licensure pathway. She told the board the FY26 financial snapshot through Nov. 30 showed an operating deficit of roughly $247,000–$248,000 that will likely narrow when December and January licensing receipts post. “Our goal for our board is 7 days [to initial licensure], and our actual for Q4 2025 was 6 days,” Jen said while reviewing performance metrics.
Board members pressed staff on benefit-rate assumptions and how a multi-year pattern of modest deficits interacts with an accumulated reserve. Jen said the board’s reserves have been built over many years, in part from case-and-complaint revenue, and that an appropriate reserve target often cited for the board is roughly one to 2½ times annual operating expenses. She added that the Department of Commerce & Insurance had advised against immediate fee increases.
After discussion, the board voted by roll call to approve the FY27 budget. The board also agreed to continue monitoring revenue and will receive a clearer financial position at the May meeting when more licensing revenue is reflected in the financials.
Next steps: staff will track actual licensing receipts and present updated financials at the May meeting; the board may revisit fee policy if deficits persist.
