DBI projects revenue shortfall but expects net positive year‑end outcome

Deputy Director Alex Koskinen reported to the Building Inspection Commission on April 17 that DBI expects to recover roughly 63.1% of its $58.8 million revenue budget for the year, creating a $4.4 million shortfall that will be largely offset by projected operating expenditure savings of $5.0 million.

Koskinen said the department had budgeted to use $22.9 million in fund balance this year but that if the current projection holds DBI would only need to use about $22.3 million. "We project recovering 63.1% of our $58,800,000 revenue budget. That is a $4,400,000 shortfall," Koskinen said, adding that $5.0 million in expenditure savings reduces the net to a $600,000 positive projection that will be deposited to reserves.

He explained that service charges remain the primary revenue source and are underperforming relative to budget, while peer review revenues are reimbursements that correspond to matched expenditures. Koskinen identified $7.0 million in previously carried‑forward funds earmarked for a PTS replacement project and noted additional deferred IT/MIS project funding totaling about $1.25 million in carryforward items.

Commissioners asked about the special funds within the building inspection fund, and Koskinen explained continuing special revenue funds such as the repair and demolition fund and a state strong motion implementation program. He said the department is monitoring labor expenditures and forecasting requests for staff increases in the next year to align budgeted staffing with operational needs.

Koskinen closed by noting that DBI’s revenue profile often improves in spring and summer but that the department is conservatively budgeting and will report changes in subsequent financial updates.