Budget Trends and Highlights (2022-2025)

Position Growth

• Overall Trend: Positions increased from 720.0 in 2022-23 to 847.0 in 2024-25 (17.6% growth)
• Division Distribution: 235.7 Investment Program, 191.3 Lender-Fiduciary Program, 191.1 Banking Supervision
• Support Staff: 76.5 Credit Unions, 61.4 Debt Collectors
• Total Workforce: 847.0 positions across all programs

Budget Fluctuations

• Total Budget: Fluctuated from $147.2 million in 2022-23 to $167.5 million in 2024-25 (13.8% growth)
• Financial Protection Fund: Primary funding source at $148.9 million
• General Fund: Decreased from $2.1 million to $0
• Program Growth: Consistent increases across regulatory programs

Program Funding (2024-25)

• Investment Program: $42.9 million
• Lender-Fiduciary: $36.0 million
• Banking Supervision: $36.4 million
• Consumer Protection: $14.4 million
• Debt Collectors: $13.0 million

Major Funding Codes and Sources

Program Codes

• 1510 - Investment Program: Securities and franchise oversight
• 1515 - Lender-Fiduciary Program: Financial transaction licensing
• 1520 - Banking Supervision: Financial institution oversight
• 1556 - Consumer Protection: Financial protection and innovation
• 1557 - Debt Collectors: Industry regulation and oversight

Funding Source Codes

• 0240 - Local Agency Security Fund: Deposit security ($0.6 million)
• 0299 - Credit Union Fund: Credit union oversight ($14.4 million)
• 3360 - Financial Empowerment Fund: Financial education ($2.3 million)
• 3363 - Financial Protection Fund: Core operations ($148.9 million)
• 0995 - Reimbursements: Agency services ($1.3 million)

Major Projects and Initiatives

Investment Regulation

1. Securities Oversight:

   • Capital formation promotion
   • Investor protection
   • Market integrity
   • Regulatory compliance

2. Broker-Dealer Supervision:

   • License management
   • Examination program
   • Enforcement actions
   • Market monitoring

Financial Institution Supervision

1. Banking Operations:

   • Safety and soundness
   • Risk assessment
   • Compliance verification
   • Consumer protection

2. Credit Union Oversight:

   • Institutional stability
   • Member protection
   • Operational review
   • Financial monitoring

Consumer Protection Programs

1. Financial Innovation:

   • Market monitoring
   • Product evaluation
   • Consumer education
   • Regulatory guidance

2. Enforcement Actions:

   • Investigation coordination
   • Consumer complaints
   • Legal proceedings
   • Remedial measures

Administrative Structure

The Department operates through specialized divisions:

1. Executive Office:

   • Policy Direction
   • Strategic Planning
   • External Relations
   • Legal Affairs

2. Regulatory Operations:

   • Investment Division
   • Banking Division
   • Credit Union Division
   • Consumer Protection

3. Enforcement Division:

   • Investigation Unit
   • Legal Services
   • Consumer Response
   • Market Monitoring

4. Support Services:

   • Administration
   • Information Technology
   • Human Resources
   • Financial Management

Funding Allocation Process

1. Program Planning:

   • Market assessment
   • Risk evaluation
   • Resource allocation
   • Priority setting

2. Implementation Strategy:

   • Regulatory oversight
   • Consumer protection
   • Industry supervision
   • Innovation support

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] Financial Code Division 1, Chapter 3 [3] Department Strategic Plan [4] Financial Institution Examination Guidelines [5] Consumer Protection Regulations [6] Investment Program Manual [7] Administrative Procedures Manual