Under what condition may fees, fines, and penalties be raised?

The correct response is grounded in the principle of fiscal responsibility and accountability in managing public funds. When revenues fail to meet expenditures over two consecutive years, it typically signifies a structural budget deficit, meaning that the incoming funds are inadequate to cover necessary expenses. In this situation, raising fees, fines, and penalties becomes a viable option to increase revenue and address the deficit. This approach helps ensure that the necessary services remain funded and operational without compromising the sustainability of the operations.

In contrast, other options do not establish a direct relation to the necessity for raising fees, fines, and penalties. For instance, a surplus of funds may actually facilitate a reduction of fees instead of an increase, as it implies adequate funding has been achieved. Also, while a determination by the board regarding excessiveness of fees may prompt review, it does not inherently justify or necessitate a fee increase. Lastly, requiring a budget increase by the Bureau could indicate an intention to expand services or programs, but does not directly correlate with the decision to raise fees unless there is a clear deficit to address.