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LATC presses DCA budget office for detail as license nonrenewals rise after fee hikes
Summary
During a lengthy budget review, LATC members pressed DCA budget staff for a breakdown of pro rata charges, contracts and the department's 1111 allocation after staff reported projected spending of ~$972,000 and a fund balance driven partly by earlier fee increases and a jump in nonrenewals.
The Landscape Architects Technical Committee (LATC) spent its meeting probing Department of Consumer Affairs (DCA) budget projections and the allocation of administrative overhead, amid concerns that recent fee increases may be driving license nonrenewals.
DCA budget analyst Luke Fitzgerald told the committee the LATC began with a base appropriation of $1,144,000 and is projecting to spend about $972,000 in 2025–26, producing a reversion of roughly $172,000. The committee's prior-year reserve was reported at about $1,151,000, or roughly 13 months in reserve. Staff noted the out-year projections include a conservative 3% ongoing increase for personnel and retirement costs.
Committee members pressed staff for detail on a large line item labeled in materials as the department's 1111 allocation and the various pro rata charges that together account for several hundred thousand dollars in overhead. Suzanne Balcos, the budget manager, said those charges reflect salaries and benefits, contracts, rent and distributed departmental services. She explained pro rata allocations are calculated by a mix of methods: authorized position-count ratios for administrative functions, workload-based distributions for units such as investigations and call centers, and usage metrics (for example, number of computers or license volume) for IT and OIS costs.
"We keep asking why the 1111 line keeps increasing and what specifically is being charged to us," LATC Chair Pamela Bridal said. "This is a concern: for a small license population, big fee increases can make licensure unaffordable for younger professionals." Bridal asked staff to provide a line-by-line breakdown and historical trend so the committee could consider reducing operating costs and, ultimately, lower fees if reserves permit.
Members also asked about specific expenditures that appear large relative to past budgets: postage ($1,364 shown in materials), facility rent that exceeds an historical facilities budget line, and equipment encumbrances. Budget staff agreed to supply the committee with details on those items, and with links and documentation on how pro rata and distributed costs are calculated.
Separately, committee members raised concerns about the effect of last year's fee increase — which was described in the meeting as rising from about $400 to $700 — on license renewals. In response, a DCA staff member identified in the record as legal reported that nonrenewal rates have risen over recent years: 5.8% in 2023, 12.9% in 2024 and 17.6% through May 31, 2025. Legal and program staff said they track delinquency status and reported retirements separately, and they agreed to provide more detailed analysis that separates retirements and other causes from fee-related nonrenewals.
Budget staff said the committee's surplus projections include an "income from surplus" line that is calculated by formula and is currently modeled at 1.5% interest on fund balances; they plan to revisit that assumption in the spring because market rates have risen recently.
What happens next: staff committed to provide the LATC with a historical months-in-reserve trend, a detailed breakdown of the department pro rata and external contracts (noting contracts mentioned in the materials include Elavon, PSI and Udoka LLC), and more granular data on licensee nonrenewals and renewals trends. Committee members said they will use the detailed information to consider whether to request budget-line adjustments and whether fee reductions could be warranted if reserves remain robust.
