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 considered.

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.