FISCAL NOTE
FUND(S):
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 |
2014
Increase/Decrease
(use"-") |
2015
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 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
Memorandum
Person submitting Fiscal Note: Jerry L. Conrad
Email Address: Jerry.L.Conrad@wv.gov