Budget Trends and Highlights (2022-2025)

Position Growth

• Overall Trend: Positions increased from 1,198.0 in 2022-23 to 1,400.3 in 2024-25 (16.9% growth)
• Division Distribution: 463.0 Regulation, 341.0 Consumer Protection, 336.3 Fraud Control
• Support Staff: 253.0 positions in Administration
• Total Workforce: 1,400.3 positions across all programs

Budget Fluctuations

• Total Budget: Increased from $322.4 million in 2022-23 to $354.7 million in 2024-25 (10.0% growth)
• Insurance Fund: Primary funding source at $346.5 million
• General Fund: Limited funding at $7.4 million
• Program Growth: Consistent increases across all major programs

Program Funding (2024-25)

• Regulation: $111.1 million
• Consumer Protection: $76.4 million
• Fraud Control: $165.5 million
• Tax Collection: $1.6 million
• Administration: $45.6 million (distributed)

Major Funding Codes and Sources

Program Codes

• 0520 - Regulation: Company and producer oversight
• 0525 - Consumer Protection: Public assistance and advocacy
• 0530 - Fraud Control: Investigation and enforcement
• 0535 - Tax Collection: Revenue compliance
• 9900100/200 - Administration: Operational support

Funding Source Codes

• 0001 - General Fund: Tax collection support ($7.4 million)
• 0217 - Insurance Fund: Core operations ($346.5 million)
• 0890 - Federal Trust Fund: Federal programs ($0.025 million)
• 0995 - Reimbursements: Agency services ($0.724 million)

Major Projects and Initiatives

Market Regulation

1. Company Oversight:

   • Financial surveillance
   • Market conduct exams
   • License management
   • Compliance monitoring

2. Producer Licensing:

   • Agent/broker licensing
   • Background checks
   • Continuing education
   • Performance monitoring

3. Rate Review:

   • Filing analysis
   • Market impact
   • Consumer protection
   • Rate adequacy

Consumer Services

1. Public Protection:

   • Complaint resolution
   • Consumer education
   • Market monitoring
   • Public outreach

2. Market Conduct:

   • Company examinations
   • Practice reviews
   • Compliance verification
   • Consumer advocacy

Fraud Prevention

1. Investigation:

   • Fraud detection
   • Case management
   • Evidence collection
   • Prosecution support

2. Enforcement:

   • Criminal prosecution
   • Administrative actions
   • Civil proceedings
   • Industry compliance

Administrative Structure

The Department operates through specialized divisions:

1. Executive Office:

   • Commissioner's Office
   • Policy Development
   • Legislative Affairs
   • Communications

2. Regulatory Operations:

   • Company Regulation
   • Producer Licensing
   • Rate Regulation
   • Market Conduct

3. Consumer Services:

   • Complaint Handling
   • Consumer Education
   • Market Analysis
   • Public Affairs

4. Support Services:

   • Administration
   • Information Technology
   • Legal Services
   • Human Resources

Funding Allocation Process

1. Program Planning:

   • Market assessment
   • Resource allocation
   • Priority setting
   • Performance goals

2. Implementation Strategy:

   • Regulatory oversight
   • Consumer protection
   • Fraud prevention
   • Service delivery

3. Operational Support:

   • Staff development
   • Technology systems
   • Process improvement
   • Quality control

4. Performance Monitoring:

   • Program evaluation
   • Outcome measurement
   • Efficiency analysis
   • Impact assessment

Sources: [1] California State Budget 2024-25 [2] Insurance Code Sections 1-16032 [3] Department Strategic Plan [4] Market Conduct Examination Guidelines [5] Consumer Protection Regulations [6] Fraud Control Program Manual [7] Administrative Procedures Manual