Director reports reserves stable but licensing revenue dipped since 2022
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Summary
The commission’s director reported a modest surplus for the year, a reserve balance of about $3.3 million and a decline in licensing revenue from about $1 million in 2022 to approximately $779,000; staff said they will monitor trends and delay some travel to manage costs.
During the Oct. 20 meeting the commission’s director presented a budget update showing a modest operating surplus this year and a multi-million-dollar reserve, while flagging a downward trend in licensing revenue.
The director told commissioners the program is showing a current-year surplus of about $24,000 and a total reserve balance of approximately $3,300,000. He said that, when considered against roughly 2,500 licensees, the reserve balance provides a substantial cushion but that staff remain vigilant given rising costs.
Why revenue is down: The director said licensing revenue has declined from around $1,000,000 in 2022 to about $779,000 most recently. He and commissioners attributed the decline primarily to fewer new licensees and broader market conditions that also affect home inspectors and related fields. Commissioners noted retirement among long-tenured appraisers and cyclical renewal patterns as additional factors.
Near-term budget steps: Staff said they will postpone some spring conference travel and had shifted some salary items within the budget as a precaution. The commission approved fall ARRO travel but agreed to monitor the budget for the next fiscal close.
Commissioners asked whether forthcoming industry changes such as the UAD 3.6 rollout could affect demand for appraisers; director and commissioners said they would monitor national trends and associations for early warning signs.
Ending: Staff will finalize training analysis and reserve reconciliation later in the month and report back to the commission at its next meeting.