Psych Board Debt to Reach $400K for 2018

According to Boards and Commission budget tracking for the Louisiana Board of
Examiners of Psychologists (LSBEP), the psychology board is projecting a fund
balance of minus $400,595 for 2018.

This comes after several years of overbudget spending that appears to be due in
large part to legal fees. The psychology board is self-funded, and it operates with
income supported by license fees and other service fees.

Based on the budget and financial tracking provided at the Boards & Commissions
website, the LSBEP stayed approximately within budget for most years and carried a
“fund balance” of around $100,000, which appears to function as a savings reserve.
For 2014, the board took in $262,582 and spent $249, 517. The fund balance was
$144,709.

And in 2015, the board took in $263,691 in fees and spent $275,147. For 2015, the fund
balance was listed at $120,188.

However, in 2016, the board spent $336,677 while proceeds remained steady at $265,945. Budget tracking indicates a fund balance of minus $214,818.

The change in the fund balance from 2015 to 2016 is not clear, based on the tracking numbers as given.

For the current year of 2017, expenses are projected to be $388,903. Income continues at the same general level, projected to be $263,265.

The budget figures indicate that board’s projected budget for 2018 will be a fund of minus
$400,595. Expenses for 2018 are projected to be $327,871 with income again holding
steady at $269,755.

The Boards & Commissions site also provides information and various breakdowns of the
budget items, with data from 2010 to the present.

According to the tracking of expenditures from 2014 to 2017, the employee salaries
and benefits have increased from $125,839 in 2014 to $148,946 in the current year.
This amounts to an 18 percent increase.

Over this same time, operating expenses decreased from $66,974 in 2014 to $57,858 in
2017, a drop of 13.6 percent.

Professional services, another category of expense, has increased from $56,704 in 2014
to $135,767 for 2017. This is an increase of 139 percent. For 2018 the total for professional
services is projected to be $182,099, or an increase of 221 percent.

For the budget figures, the professional services category includes four subcategories:
Accounting, Management Consulting, Legal, and Other. From 2014 to 2017 all increased, while legal increased the most at 247 percent.

In 2014 Accounting was $1,331, Management Consulting was $4,495, Legal was $37,882, and Other was $12,996.

For 2017, Accounting is projected at $9,849, Management Consulting is $15,600, Legal is $131,500, and Other is $25,150.

This information is available at

https://wwwcfprd.doa.louisiana.gov/boardsAndCommissions/home.cfm

At the LSBEP regular meeting, held on June 16 at the offices in Baton Rouge, Chair Dr. Darla
Burnett reported that she reviewed the bank and financial records.

According to the minutes, “Dr. Burnett also reported that she had reviewed the current financial state of the Board with Ms. Monic, noting the two biggest expenses are employees and
legal fees. Dr. Burnett thanked Board Members for waiving their Per Diem and Travel
reimbursements in FY 2016-17 to attend Board meetings, committee meetings, and LPA,
and recommended, in an effort to remain fiscally responsible, that the Board continue to waive reimbursement and travel in the 2017-18 fiscal year given the anticipated deficit.

“Dr. Burnett further recommended that the Board continue to actively consider revenue
development initiatives including review and approval of continuing education programs, inactive status, additional licensure types or registration of psychological assistants, providing continuing education workshops, and as a last resort, changes to staff.”

The LSBEP called a special meeting July 7, held in New Orleans, and met in Executive Session, apparently to deal with personnel and financial matters. According to the agenda and
minutes, “The Board reviewed and discussed applicant qualifications for prosecuting
attorney. The Board reviewed and discussed layoffs. The Board reviewed and discussed
qualifications and affirmed the current list of evaluators as approved to perform
psychological/neuropsychological evaluations/fitness for duty examinations under LA R.S. Ch.
37 §§ 2356, 2356.1, 2356.2, and 2356.3: […]”

“The Board reviewed proposals for a contract for prosecuting attorney for the 2017-18 Fiscal
Year due to the current financial status of the Board. Dr. Henke reported receiving proposals and vitas from three well qualified prosecuting attorneys. By motion of Dr. Henke, the Board voted to award the contract to Attorney Courtney P. Newton beginning July 7, 2017 – June 30, 2018, in an amount not to exceed $28,000. The fee schedule should reflect the following rate of pay: $100 per hour plus travel and expenses that are preapproved in accordance with
Policy and Procedure Memo 50.”

Previously the prosecuting attorney, Mr. James Raines, charged $250 hour. While unclear, it appears that Mr. Raines may no longer be with the board.

The July 7 minutes also note, “The Board revisited the need to have a second contract for
Complaints Coordinator. Dr. Boggs moved to offer a contract not to exceed $5,000 for an
auxiliary Complaints Coordinator to Dr. Joseph Constans for overflow or for matters unable to
be handled by Dr. Lambert.”

The board also moved to lay off the administrative assistant. According to the minutes, “The
Board continued discussing its current financial status and outlook. Recognizing that the
Board could no longer delay action given the current financial state versus the time it will take to recover and/or further develop revenue sources, Dr. Henke, moved that in addition to the
recommendations presented in June 2017, the Board temporarily layoff the Administrative Assistant position. The motion passed unanimously.”

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