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DCA budget analyst reports BRN fund in reserve: projected 18.5 months by FY2025–26
Summary
DCA budget analyst Luke Fitzgerald told the board the BRN had a FY2024–25 ending reserve of about $75.8 million (~17 months); FY2025–26 projections show $103.8 million (~18.5 months), with revenue and expenditure drivers including endorsement spikes and personnel cost adjustments.
On March 26, 2026, Luke Fitzgerald of the Department of Consumer Affairs budget office presented the board's revenue and expenditure projections and a fund‑condition statement showing the board’s strong reserves but potential exposure to future cost pressures.
Fitzgerald said the board began FY2024–25 with a beginning balance of about $27.5 million, collected roughly $80 million in revenues (about $22.6 million from initial license fees, $52 million from renewals and $5.4 million from citations/fines/other), and ended the year with a reserve of approximately $75.8 million (about 17 months). He told the board that FY2025–26 projections show revenues of about $81.5 million and projected expenditures that would leave an estimated $103.8 million in reserve (about 18.5 months). He also noted a $30 million loan repayment from the general fund was recorded in the prior year projections.
Fitzgerald cautioned that future increases in personal‑services costs (salary adjustments, retirement rates) could raise expenditures and that any new legislation or unanticipated events could create additional resource needs. Board members raised questions about fee levels and whether a growing reserve justified fee reductions. Executive Officer Loretta Melbby described steps already taken to reduce or streamline fees (combining nurse‑practitioner furnishing applications, removing certain verification fees, eliminating some school curriculum fees) and said staff planned to review and update fee regulation 16 CCR 1417 to reflect process changes.
Board members also discussed a recent spike in endorsement applications during the COVID period that created a one‑time revenue increase; staff noted budgets are generally prepared on multi‑year trends and a temporary application blip does not change long‑term staffing assumptions without evidence the trend will continue.
Next steps: The budget office will continue monthly monitoring of revenues and expenditures; staff will proceed with fee‑regulation updates and follow up with the board on budget change proposals and positions requests.
