Cemetery and Funeral Bureau warns of structural deficit, proposes small fee increase
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Summary
The Cemetery and Funeral Bureau told its advisory committee Oct. 22 that a structural budget shortfall — driven in part by enforcement costs and a drop in license renewals — could exhaust reserves as soon as next fiscal year. The bureau plans a minimal fee increase to carry it to the 2028 sunset review and will hold a public meeting to present proposals.
The Cemetery and Funeral Bureau told its advisory committee on Oct. 22 that it faces a structural deficit that could exhaust reserves as soon as the next fiscal year without additional revenue. "So, CFC recognizes that without action, it will run out of funds next fiscal year," Bureau Chief Gina Chevarini Sanchez said.
The bureau provided a fund-condition handout (as of Sept. 4, 2025) showing FY2024–25 revenues of about $6,652,000 and expenditures of about $6,790,000, leaving roughly 2.5 months in reserves. Projections for FY2025–26 reduce reserves to about one month, and the bureau indicated the fund looks insolvent in later outgoing years unless action is taken. Gina Chevarini Sanchez said enforcement-related costs tied to a civil court case in 2023–24 materially increased expenses and contributed to the gap.
To bridge the shortfall, the bureau is working with the Department of Consumer Affairs’ budget office on short-term solutions and is considering "a very small under-$10 type of increase" for one or more fees to carry the bureau to its scheduled sunset review, when a comprehensive fee study would be appropriate, the chief said. She said the bureau will convene a public meeting to present any proposed fee changes and gather stakeholder input.
Committee members raised concerns about how prior fee increases affected license retention. Gina said the last fee increase was in 2021 and that the bureau observed a decline of "a little over 2,000" licensees afterward; she also said the exact numbers will be part of the full fee analysis at sunset. "That is the type of analysis that needs to be included in a full fee raise," she said.
Gina said the department is supporting the bureau in developing solutions and that the bureau is not yet final on a plan. The next steps are a budget meeting with departmental staff, preparation of a fee proposal for a public meeting, and a follow-up advisory or public session to collect comments prior to any formal fee action.
Ending: The bureau plans to present a formal proposal at a subsequent public meeting once options are developed and said it will continue collaborating with the department on budget remedies.