Road Fund

Sources of Revenue:

Special Fund

Legislation creates:

Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    This legislation will affect the budget in three ways. The first provision of this legislation extends the current five year driver license and identification card renewal to eight years. As fees are calculated, the revenue will not change, however, labor savings will accrue in future years since customer renewals will be processed once every eight years instead of once every five years..
    Second, the $10 fee for persons who choose a federally compliant driver licenses or identification cards will cover the additional cost incurred in the production of a “For Federal Use” driver license.
    The third provision of this legislation is the implementation of on-line driver license renewal, a recommendation of the Legislative Auditor. Based on their research, the Legislative Auditor has projected a savings of $11.14 for on-line driver license and identification card transactions. These savings will be realized in operational costs at branch office locations throughout the state.

Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
1. Estmated Total Cost -560,228 -560,228 -560,228
Personal Services -560,228 -560,228 -560,228
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 372,420 372,420 372,420

Explanation of above estimates (including long-range effect):

    Additional Fee
    It is projected that the additional fee of $10 for a federally compliant driver’s license will reduce the demand for those requests to 25%.
     Current Driver’s License 1,191,752
     8-year renewal ÷8
     Transactions per 8-yr cycle 148,969
     25% requesting federally
     compliant Driver’s License X .25
     Total federally compliant 37,242
     Additional Fee for federally
     compliant X $10
     Total Revenue for federally
     compliant Driver’s License $ 372,420
    On Line Renewal
    With the implementation of this legislation it is projected that 20% of Driver’s License renewal transactions will be performed on line. It is estimated that a transaction conducted in a DMV office location requires 15 minutes to complete.
    The reduction in time and benefits in an average office is $3.74 per transaction.
     Current Driver’s License 1,191,752
     8-year renewal ÷ 8
     Transactions per 8-yr cycle 148,969
     20% renewing on line X .20
     Total estimated on line
     transactions 29,793
     Employee cost per
     transaction X $3.74
     Estimated cost reduction $111,428
     Average annual salary for FTE ÷ 31,143
     Estimated Annual Labor Reduction 3.58 FTE
    In addition to the labor savings for on line renewals it is estimated that driver’s license transactions would be reduced from the current 270,000 annually to approximately 150,000 annually.
     With the 8 year renewal this would be:
     120,000 Less Driver’s License transactions annually
     X $3.74 Labor & Overhead per transaction
     $ 448,800 Labor & Benefits
     ÷ 31,143 Average Annual Salary
     14.4 FTE



    Person submitting Fiscal Note: Jerry L. Conrad
    Email Address: