DBI says two-year budget would spend down nearly all reserves; SRO tenants urge keeping $5.2M in city-funded programs

San Francisco—s Building Inspection Commission on Monday heard a preliminary two-year budget from the Department of Building Inspection that would use most of the department—s reserves and relies on a fee study due in April to restore projected revenue.

Alex Koskinen, DBI deputy director for administration, told commissioners the department currently plans to use about $33,600,000 of savings in one year and about $21,100,000 of available fund balance in the other, for a proposed total draw of roughly $54,700,000 across the two-year period. He said staff modeled a conservative, "worst-case" 18% year-over-year drop in permit revenue and incorporated a placeholder of about $13,600,000 from a pending fee study for FY2024-25, but that final policy decisions will be made during the mayor—s phase of the budget.

Why it matters: DBI is an enterprise department whose primary revenue streams are permit and plan-check fees. With permit-related income uncertain and most DBI spending labor-driven, the budget presented limits options to cut costs without affecting services. Several community groups said shifting or cutting…