Report 2007-038 Highlights - October 2007
Medical Board of California:
It Needs to Consider Cutting Its Fees or Issuing a Refund to Reduce the Fund Balance of Its Contingent Fund
Our review of the Medical Board of California's (medical board) financial status and fund balance revealed that:
- The fund balance of the medical board's contingent fund increased by $6.3 million, to $18.5 million, in fiscal year 2006-07. This represented 4.3 months of reserves, more than 100 percent above the reserve level mandated in the law.
- The recent increase in the fund balance resulted from variances between actual and estimated expenditures.
- The medical board estimates that its months of reserves will drop to 1.5 months by June 30, 2012, assuming that it spends all of its appropriations in each of the next five fiscal years.
- However, based on the medical board's historical experience of overestimating expenditures, we estimate that it will have 3.8 months of reserves by June 30, 2012, unless it issues refunds or decreases license fees for physicians.