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Board hears budget outlook showing $615,000 reversion, about 9.7 months in reserve
Summary
DCA budget analysts told the California State Board of Optometry that the board’s beginning base budget is about $3.887 million, projected expenditures are roughly $3.272 million, producing an estimated reversion of $615,000 and a fund balance near $3.246 million (about 9.7 months). Members discussed reserves and modeling assumptions.
DCA budget staff told the California State Board of Optometry on April 10 that the board’s current beginning base budget is approximately $3,887,000 and projected expenditures for the 2025–26 fiscal year are about $3,272,000, yielding an estimated reversion of roughly $615,000.
“This report includes actual data through fiscal month 8,” said Emily Molino, a budget analyst with the DCA budget office. She said the board’s revenue projection for the year is about $3,745,000, with $3,038,000 expected from license renewals and $397,000 from initial license fees. The resulting fund balance was shown in materials as approximately $3,246,000, equal to about 9.7 months of reserves.
Board staff and members pressed for the assumptions behind the numbers. Greg (senior staff) said the Budget Office includes a conservative 3% ongoing increase in personnel costs to account for salary and retirement adjustments, and noted the “mock fund condition” presented by staff uses a 5% expenditure growth factor while holding revenues constant to show a more realistic scenario than the governor’s authorized appropriation. He told members the reversion largely stems from unfilled positions and lower‑than‑budgeted expenditures such as attorney costs.
Board members asked about a recommended months‑in‑reserve threshold. DCA staff said earlier statutory caps had limited programs to 7 months; a recent sunset review expanded the statutory cap to 24 months, but staff recommended targeting roughly 6–12 months as a prudent reserve range.
Members requested more detail on how attorney‑general and administrative hearing costs are captured in the expenditure projections. Staff said those costs are reflected in operating expense categories and that they will continue monthly monitoring and report back as projections evolve.
The board took no formal action on funding policy at the meeting; members asked staff to continue reporting monthly projections and to return with further analysis if out‑year risks materialize.
