Board of Nursing rule advances after presenters say fee increases needed to cover deficits

Department of Health staff and Board of Nursing counsel told the Government Operations committee the fee rule changes are intended to restore the board’s operating position after a period during which initial licensure fees had been reduced to zero and operating costs rose.

Mark Waters, advisory attorney for the board, and Holt Witt, assistant commissioner for legislative affairs, explained the policy history: the board had previously reduced initial licensure fees roughly six years ago, creating a large reserve that was drawn down; with rising costs the board now needs to reinstate fees to meet operating expenses. "In 2023, the board had a deficit of roughly $681,000. In 2024, the board had a deficit of roughly $1,700,000," Witt said. Committee members asked how soon the fund balance would reach target levels and who is responsible for fiscal projections; staff said boards are supported by a department fiscal director (currently interim) and that fee timing depends on the two‑year license cycle.

Members sought clarity on the cause of deficits, whether fees coming in had declined or whether expenses rose, and on the vacancy in the department fiscal director position that supports boards’ projections. Staff responded that the board’s reserve had previously been as high as $9–10 million, had been drawn down, and that fee changes aim to better align revenue with a $9.2 million operating expense in the last fiscal year. The committee voted a positive recommendation to advance the rule package.