What about consumers? Squeezing the CBA hurts profession, consumers.

• Author: Allen, Bruce C.
• Position: Government relations; California Board of Accountancy

California regulates professionals such as CPAs via licensing boards and bureaus. These agencies generally are self-funded by the licensing fees paid by the regulated individuals within the profession or industry.

The California Board of Accountancy is having difficulty performing its public interest responsibilities because of the state's budget shortfall even though--if left alone--it would have more than enough money to fund its activities.

Under-staffed

In July 2002, the CBA was authorized 84.3 staff members, including permanent, exam proctors and temporary help. As of July 1, the CBA was down to 63.4 staff members.

While their workload is increasing, more people than ever before are entering the profession, and between 16,000 and 20,000 people sit for the CPA exam every year, the CBA, like other boards within the Department of Consumer Affairs, is suffering from unnecessary cutbacks that won't reduce California's deficit.

The hiring freeze that Gov. Gray Davis ordered two years ago has severely hampered the ability of California's regulatory agencies to do their jobs.

That executive order made provisions to exempt some agencies deemed critical to the health and safety of Californians, but did not exempt regulatory agencies that are self-supporting, such as the CBA, California Medical Board or Contractors Licensing Board.

Within these agencies, staff positions are eliminated if they are vacant for a year, or if they happened to be vacant July 1.

The CBA, like any employer, has experienced turnover for a variety of reasons. Some CBA employees were able to move to agencies that were not subject to the CBA's hiring or promotion freeze.

The net result is that the CBA is no longer able to function efficiently.

Give Them Back the Money

Squeezing the CBA does not reduce California's deficit. The CBA is totally funded by licensee renewal fees, exam fees and the like. No money from the General Fund goes to the CBA and, in fact, last year the Legislature borrowed $6 million from the CBA special fund. Other regulatory agencies were similarly "taxed" by last year's budget, promised that the money would be returned with interest as some undisclosed point in the future.

The intent language in last year's budget banned the CBA and the other boards from raising fees because of the "borrowing", indicating that it should not interfere with the CBA's programs or require a reduction in service. But it is.

Services are being reduced, programs are being...