State Education Department
Professional Licensing Operations
The State Education Department licenses and registers more than 500,000
individuals in 38 professions including physicians, nurses, engineers and accountants. These
operations are financed entirely by licensing and registration fees and disciplinary fines. To
help cover a projected deficit in these operations, Department officials requested a 40 percent
increase in licensing and registration fees. To evaluate the reasonableness of this request, we
examined the licensing and registration operations. We found that fee and fine revenue had
been used solely to finance these operations, as required by law. However, we concluded that
the Department's plans to hire additional staff for the operations may not be appropriate, as
delays in processing licenses and registrations may be better addressed by procedural and
technological improvements. In particular, we believe that processing delays could be reduced
if operations were automated to a greater extent. We note that such an improvement could be
financed by a one-time surcharge rather than a permanent fee increase. We recommend that
licensing and registration operations be re-engineered before a permanent fee increase is
For a complete copy of 95-S-42 click here.
For a copy of the associated follow-up report click here.
For a copy of the 90-day response click here.