Posted: August 31st, 2016

What is the new cost effective price?

The Division of Motor Vehicles (DMV) is part of the State Department of Transportation (DOT). The purpose of that department is to ensure the safety and free flow of people and goods throughout the State by ensuring that there is a reliable system of transportation and motor vehicle services. This mission is accomplished by funding the maintenance of the existing transportation infrastructure, by adding to and improving the infrastructure, and by otherwise operating a transportation system that minimizes congestion and promotes safety and the economic growth of the State.
Among the key functions served by the DOT are:
– driver licensing and insurance
– vehicle inspection
– bridge and highway construction and maintenance
– public transit
The current year budget for the DOT is $874 million. Of that amount, $96 million is budgeted to be spent on the DMV, which has the following objectives:
– to provide customer friendly, efficient motor vehicle services;
– to regulate drivers and motor vehicles to deter unlawful acts and protect the public safety;
– to further protect public safety by identifying vehicle safety problems; and
– to further protect the public by ensuring that all drivers carry insurance.
The state is currently preparing its budget for the coming fiscal year, which runs from September 1, 2013, through August 31, 2014. As the Director of the DMV, you are responsible for three major areas:
– licensing, registration, and inspection of motor vehicles;
– driver licensing; and
– compulsory insurance.
A major issue for the coming year will be the overhaul of the driver’s license program to include the latest enhanced digitized security technology. To cover this increased cost, the DMV is planning to charge $5 more for new drivers’ licenses and license renewals. This charge is not enough to fully cover the cost of the new licenses, but raising fees was a political hot potato during the last session of the state assembly, and the Governor would be reluctant to propose any further increase to that fee.

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