The DOC’s Fiscal State

Last week, I mentioned that the Department of Corporations' source of money is a special fund in the state's budget. This special fund is known as the "State Corporations Fund" and it typically receives the bulk of its cash inflows from licensing and permit fees. Unlike the General Fund with its current zero cash balance, the State Corporations Fund appears to be quite healthy with a budgeted begining balance of about $46 million. However, the Governor's budget proposes spending approximately $44 million while taking in only about $33 million. These exenditures are to be divided approximately evenly between the Department's Investment Program and Lender-Fiduciary Program. The Governor is proposing to add 8 positions to implement the federal Secure and Fair Enforcement Licensing Act of 2008 (SAFE Act) and 2 administrative positions. As a result, the budget calls for about 133 and 129 personnel year equivalents in these two programs, respectively. (A personnel year equivalent (PYE) is not to be confused with the number of positions. Rather, a PYE refers to the estimated portion of a position expended for work. The number of PYEs does not necessarily correspond to the number of positions because positions are not always filled or filled immediately.)

The bottom line is that the for the time being the Department is not a drain on the the General Fund. Moreover, the Governor has proposed some growth to take on new responsibilities in the Lender-Fiduciary Program. Nonetheless, the Department cannot continue indefinetly spending more than it takes in.