Virginia

Department of
Motor Vehicles
BUDGET TREND ANALYSIS REPORT

Jessica Carmona, William King, Jane Lu, and Kimberly Taylor

PAPA-6314 | SPRING 2016
DESCRIPTION OF THE AGENCY AND ITS REVENUE SOURCES

This report is a budget trend analysis of the Virginia Department of Motor Vehicles

(DMV) for the 6-year period from FY 2009 to FY 2014. The Department’s primary mission is

summarized by its mission statement, “The Department of Motor Vehicles (DMV) promotes

Security, Safety, and Service through the administration of motor vehicle and tax related laws.”1

The most visible activities of the Department involve the licensing and registration of motor

vehicles operators, motor vehicles and motor carriers. This is accomplished at dozens of

facilities located throughout the Commonwealth, mobile service centers, third party partners and

the internet.2

The overall purpose of the Department has been relatively stable with a few notable

exceptions since it was first established in 1924 as the Office of the Motor Vehicle

Commissioner at this time, motor vehicles were registered and drivers were not. Drivers were

first licensed in 1932 by Virginia State Police (VSP) examiners, who were part of the Division of

Motor Vehicles. In 1942, the DMV and VSP were split into two separate agencies and for a

short period of time until 1948, drivers were licensed by the VSP. In 1948, licensing operations

were returned to the DMV and were provided at 5 locations throughout the Commonwealth. The

Department has maintained its focus on providing services to its customers and methods to

provide these services. The Department’s current footprint includes “74 customer service

centers, five mobile offices, 52 DMV Select offices, 13 permanent motor carrier service centers,

12 mobile weigh crews, three telephone call centers, four DMV Connect teams, and more than

40 transactions available online.”3 Other significant changes to the Department’s operations

include taking over responsibilities of motor carrier functions from the State Corporation

1
Strategic Planning Report 2012-2014, p. 1
2
Strategic Planning Report 2012-2014, p. 4
3
B. Brubaker, personal communication, 2/12/2016

2
Commission in 1995 and transferring the truck weigh program to the Department of

Transportation in 2000. In addition to those services typically associated with DMVs, the

Department also provides other services including issuing hunting and fishing licenses, certified

copies of vital records, and E-Z Pass transponders.4 Providing these services has been part of the

Department’s transition over the past 20 years to improve customer service. Major initiatives in

this area have resulted in Virginia being the first state to offer online license renewals, DMV 2

Go mobile service centers, DMV Connect teams, and partnering with other agencies to increase

the availability of services.5

The Department is managed by a Commissioner and is one of eight agencies that reports

to Secretary of Transportation.6 The Department is divided into three primary functional areas:

Operations, Administration & Finance, and Information Technology. Each of these functions is

under the direction of a Deputy Commissioner with a fourth Deputy Commissioner over

Highway Safety and Special Projects. There are four independent divisions that report directly

to the Commissioner.7 With this configuration, the Department’s overall command structure is

decentralized with each of the functional areas have a significant degree of independence to

accomplish their objectives. Within specific functional areas including licensing and

registrations is highly centralized as the overall integrity and uniformity of services are critical to

the mission.8

Total expenditures for the Department have decreased by nearly 25 percent from $296

million in FY 2009 to $223 million in FY 2014. This reduction is almost completely accounted

for in the transfer of four areas of operation to other departments beginning in FY 2013. The

4
B. Brubaker, personal communication, 2/12/2016
5
“About the Commissioner”, 2016.
6
“Transportation Agencies”, 2016
7
“Organization Chart”, 2015
8
“Virginia DMV: Now Serving”, 2015

3
four areas focused on providing grants and revenue transfers to other governmental agencies.

The functions were transferred to other Departments who had missions more closely aligned

with these functions.9 The expenditures for these four areas totaled $73 million in FY 2012.

Excluding these expenditures from the total, the Department's expenditures have experienced a

very small reduction of 0.2 percent from $223.4 million to $223.1 million from FY 2009 to FY

2014.

Figure 1

Even with expenditures flat over these years, there have been important changes in the

division of expenditures between operational areas. The largest increase in expenditures over the

years was in the Department’s Customer Service Centers Operations (CSCO), where an

additional $3.7 million was spent above the FY 2009 value. This was balanced by a nearly $3.3

million reduction in expenditures for Information Technology Services (ITS). Though the

absolute values of these expenditures are close, due to the total budget for each area, the

9
“Motor Vehicle Rental Tax”, 2016

4
percentages were significantly different with CSCO expenditures increasing 3.5 percent and ITS

expenditures decreasing 9.9 percent.

The revenues for the Department are derived from two primary areas, the first being fees

and the second being taxes. The budget for the actual operations of the department comes from

the fees collected by the department. The total value of these collected fees increased slightly

(2.3 percent) from $466 million in FY 2009 to $477 million in FY 2014.10 The tax revenues

increase by a larger amount (12.6 percent) from $998 million in FY 2009 to $1.1 billion in FY

2014. The actual value of these taxes had little impact on the operations of the Department as it

was merely the agency collection the taxes and did not actually utilize them to fund their

operations. As the Department is primarily supported by fees, it is the stability of these fees that

determines the reliability of funding for the department. With a current licensed driver base of

6.2 million and 7.8 million registered vehicles,11 the Department has a substantial revenue

baseline that is well insulated from economic conditions.

Revenue FY09 - FY14

$1,200,000,000 $1,098,062,803 $1,124,871,094
$1,059,088,788 $1,082,463,324
$998,701,732 $1,015,131,149
$1,000,000,000

$800,000,000

$600,000,000 $496,851,048 $477,645,775

$466,315,333 $452,552,336 $469,140,584 $470,313,542

$400,000,000

$200,000,000

$0
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014

Rights And Privileges (Fees) Taxes

Linear (Rights And Privileges (Fees)) Linear (Taxes)

Figure 2

10
“Revenues by Agency”, 2016
11
“Agency Overview”, 2016

5
ASSESSMENT OF THE AGENCY’S BUDGET CYCLE AND PROCESS

The Virginia Department of Motor Vehicles operates on a biennial budget prepared by

the Governor. As the chief planning and budget officer, the Governor prepares and executes the

budget after it's approved by the legislator. In even numbered years, the General Assembly

enacts a two-year budget. In odd number years, the House and Senate address the unexpected

increase or decreases to the budget.12 The budget process begins over a year before it’s enacted

into law and involves many different players, from the public to state agencies to the legislature.

This process includes five distinct phases as seen below:

Figure 3 (Source: Planning and Budget, 2016)

Phase one is Agency Budget Preparation phase, which begins in late July – August. The

Governor develops written guidelines for budget preparation. The guidelines are issued to the

agency by the Department of Planning and Budget. The agency Commissioners, Auditors, and

Financial Management Services analyze its programs and needs through the strategic planning

process where they review their mission to Promote Security, Safety and Security through the
12
Senate Staff 2006.

6
administration of motor vehicle and tax related law.13 The agency also elicits feedback from

citizens through surveys and other methods on how well they are satisfying the needs of the

customer.14

The second phase is Budget Development phase, where the Department of Planning and

Budget reviews the request submitted by the Department of Motor Vehicles. As part of this

phase, the Department investigates alternative funding sources and identifies policy issues that

could impact the budget for the Governor’s consideration. An example of this policy

identification is the pending legislation regarding Reckless Driving: Right to Appeal. In the late

fall, the Governor and his cabinet secretaries collaborate to prepare a budget that reflects the

current Administration's priorities. The Governor then submits the budget proposal to the

General Assembly in December in the form of a budget bill.

The third phase is the Legislative Action phase, where the budget bill is directed to

committees that hold public hearings and discussions. The House of Delegates and the House

Appropriations Committee review the budget. In the Senate, the budget bill is sent to the Senate

Finance Committee for review. After both committees introduce amendments to the budget, it is

brought to the floor of both houses where additional changes may be considered. After both

houses vote on its own version of the budget bill, it then crosses over to the other house where it

is debated again and voted on. A conference committee then resolves any differences between

the two versions passed between the houses. The General Assembly forwards the budget bill to

the Governor for his signature.

The fourth phase is the Governor’s Review phase. The Governor reviews the bill passed

by the General Assembly. He may sign or veto the entire bill or certain line items or he could

13
Strategic Planning Report, 2008-2010
14
Planning and Budget 2016

7
recommend certain changes. If the Governor vetoes the bill of any items in the bill, then it goes

back to the General Assembly during a reconvened session in the spring. If the Governor

recommends amendments, the bill is returned the reconvened session for consideration and

action by the General Assembly.15

The last phase is the Execution phase. The budget is passed by the General Assembly and

enacted into law. The beginning of the new fiscal year starts July 1st for the state government

and October 1st for the federal government. There are uniform controls in place during this phase

and they are normally maintained by the Financial Management Office. DMV must submit to

the Office of Management and Budget a proposed plan for how the funds will be used. The plan

includes the amount of money needed for operations.

The funds are likely distributed on a quarterly basis. Political hurdles are often an issue

and sometimes drive leaders to push certain agendas. During the budget preparation phase, there

are political factors and policy considerations that cause conflict and fiscal constraints that halt

the entire budgeting process. Each department is concerned with its own survival and

advancement.16 Competition and self-serving agendas are often a source of conflict in the

budget process during the preparation phase. It is considered to be greatly fragmented where

different units within the agency tend to be concerned with their own programs and fail to look at

the needs of the other departments or the entire organization as a whole.

The governor is selected to serve a single four-year term which means he has a short time

to accomplish his goals. His initiatives are normally tied to campaign promises or his state’s

economic issues. For example, Governor Wilder made promises to eliminate the car tax and

15
Planning and Budget 2016
16
Lee, Johnson, Joyce 2013

8
Governor Mark Warner who promised tax reform.17 Both failed to fulfill their promises. Their

goals were not aligned with the plans set by the Administration. In addition, they had no way to

generate revenue to fund the initiatives.

The fiscal year ends in June and the budget cycle process begins in August. New laws are

often enforced beginning July 1st. Elections for government offices often occur in the fall during

the same time of the budget preparations. Political officials often have the opportunity to run on

the platform of changing unpopular laws or improving conditions in their own state. It appears

political gridlock has become the norm as politicians withhold funding until they can get support

for certain elements of legislation they want passed. This often results in stagnated government

and unhappy taxpayers.

AGENCY’S BUDGET AND BUDGET TRENDS

The Virginia Department of Motor Vehicles (DMV) utilizes a performance type budget

format for all of its budgeting needs. This type of budget format focuses on the department’s

mission, goals, and objectives and helps focus on results rather than the workload or activity. 18

The total amount of revenue collected by the Virginia DMV from 2009 to 2014 was

$9,390,650,132 and has slightly been increasing over the years. The majority of the revenue

received are derived from the Rights & Privileges and Taxes classes as shown below19:

17
Senate Staff 2006
18
Lee, Ronald, & Philip p. 207
19
“Revenues by Agency”, 2016

9
 Figure 4

The Rights & Privileges revenue class, as shown in Figure 2, consists of fees from the

services the department offers such as permits, licenses and registrations fees. There is a slight

increase and decrease every year for this revenue class which could be in result of the renewal

requirements for the services. For example, driver licenses have a long term before renewals and

registrations renewals can usually be purchased every 2-4 years. For the taxes revenue class, the

taxes collected are motor vehicle and environmental related. This revenue class has seen an

increase every year and most likely in result of the population increasing and more and more

motor vehicles being purchased. Both these revenue classes have been growing over the years.

All of the revenues collected by the DMV are essential in helping ensure the department’s yearly

operation cost and being able to meet the needs of the public.

As shown in Figure 5 below, the department’s expenditures are broken down into 7

categories.20 The majority of the department’s expenditures (49 percent) have been allocated in

the customer service centers. This allocation towards customer service centers closely aligns

with the DMV’s vision statement: PEAK performance – everyone, every time. It also aligns with

the values of people, ethics, accuracy and knowledge and most of the agency’s goals. 21 The

second major allocation is ground transportation regulation at 16 percent. Between FY 2009 and

20
Commonwealth of Virginia 2013 Budget Document/Budget by Area p. 218-220
21
Strategic Planning Report 2012-2014, p. 1.

10
FY 2014, the department’s expenditures have increased, and customer services centers category

has continued to remain a top priority for the department. During these years, there has been a

decline in the information technology services and ground transportation regulation and

enforcement.22 This decline could be in result of the department’s recent focus and investment of

efficient technology that is lasting longer and helping in the transportation regulation and

enforcement.

Figure 5

The State of Virginia has both operating and capital budgets. The Department of Motor

Vehicles does not have a capital budget per say as an individual department but it can make

recommendations towards the allocation of funds that have been appropriated towards the Office

of Transportation where it currently resides. $31.6 million was designated for the Department of

Transportation in 2012-2014 biennium budget.23 The capital outlays requests that were made that

biennium year were acquiring, designing, constructing and renovating facilities in the district

23
Virginia DPB – 2013 Budget Document

11
offices, area headquarters, at the central office, and residency offices.24 All capital outlays

requests made goes back to ensuring that it will support the long-term facility needs and

commitment to providing convenient, efficient and effective level of customer service to its

citizens.25

In the Department’s Strategic Plan for 2012-2014, there has been a huge emphasis and

push for a revitalization in the department’s information and technology systems. In order to

provide the high level of customer service, the department is now focusing and proposing on

innovative technology that will ensure the service of delivery faster, convenient and also in

hopes to reduce the operation costs. The proposed IT solutions are government reform,

information technology modernization and Securi Test. These are some of the several steps

needed to continue to achieve its mission and vision goals.

AGENCY’S OPPORTUNITIES AND CHALLENGES

Moving forward, the DMV will continue to increase the delivery of its services to

customers online. This will cut operating costs such as salaries and benefits, rent, and office

supplies while increasing the information technology cost for maintenance and upgrades. This is

an opportunity where the DMV should begin to strategically plan for a future investment such as

replacing the current end-of-life IT systems with the Information Technology Modernization

project, which will be discussed in the next section of this budget trend analysis. As stated in the

2012-2014 Strategic Plan, an opportunity to increase revenue is through promoting revenue

collection throughout the state by “using a variety of enforcement tools and dedicated law

enforcement resources”, which will help the DMV maintain its high collection rate and generate

revenue (5). In a 2016 audit report, Auditor of Public Accounts (APA), a legislative branch of
24
Commonwealth of Virginia Budget Document
25
Strategic Planning Report 2008-2009, p. 2.

12
Virginia government that provides oversight for executive and judicial branch agencies, found

that the DMV overstated outstanding fuels tax amount in the Comprehensive Annual Financial

Report, which makes them likely uncollectible.26 For that reason, the DMV will be better

equipped with the help of law enforcement tools to ensure tax is collected as fuel leaves the

terminal rack or other terminal transfer systems.

While there are opportunities present for the DMV, there are also challenges that the

DMV faces. As stated in the 2012-2014 Strategic Plan, the DMV was expecting a 10.5 percent

decline in revenue for 2014 compared to the previous fiscal year even though the DMV has

received some authority to collect revenues such as late fees. This is largely due to the

modification in the collection schedule for the license renewal from every 5 years to every 8

years. The DMV projected that there will be a 2 percent increase in the number of customers that

are licensed drivers and a 170 percent increase in the number of customers that are ID

cardholders. This means there will be an increase in expenditures to meet the demands of

services for ID Cardholders. Although certain transactions could be conducted online such as

driver’s license renewals and name changes, applying for a new driver’s license cards or

identification cards must be conducted at a physical DMV location.

A significant challenge that the DMV has been facing is improving customer service

demands as described in DMV 2012-2014 Strategic Plan. For instance, there has been an

ongoing demand from customers who have complex compliance related driving issues, where

the DMV has to re-allocate its resources to support these customers. Compliance services are

complex issues that mostly have to be handled by DMV representatives. Examples of this

include clarifying questions from customers about the requirements to reinstate driving or

26
Agencies of the Secretary of Transportation Report on Audit for the Year Ended June 30, 2015 (December 15,
2015).

13
registration privileges, processing reinstatement fees and outstanding fees before reinstating a

driver’s license, and resolving incorrect information on the compliance summary report. 27 This

complex service requires DMV representatives to commit long hours to resolving these complex

matters, which explains higher resource allocation and expenditures for this division. Internally,

the DMV is expected to increase expenditures in employee benefit costs and information

technology.

As shown in Figure 6 below, the DMV expenses exceeded its revenue by almost $52

million in FY 2009. Between FY 2010 and FY 2014, DMV revenues were sufficient. In the last

two FYs, the DMV did not have sufficient revenue since its expenses outweighed its revenue. In

FY 2015, the lack of revenue was possibly due to DMV’s lack of standardized reviews and poor

oversight of third party vendors whom the DMV used to collect major revenue sources such as

fuels taxes, vehicle sales and use taxes. Another cause was poor accounts receivable reporting

which may have prevented the collectors from resolving and processing outstanding fuels tax

receivables.28

27
Virginia DMV Reinstatement Fee Payments FAQs
28
Audit of the Agencies of the Secretary of Transportation for the year ended June 30, 2015 (December 15, 2015).

14
 Figure 6 (Source: Revenues and expenses data from Audit of the Agencies of the Secretary of Transportation from
FY 2009 to FY 2015)

Currently, the DMV does not allow customers to renew their Virginia vehicle registration

if they have delinquent local government personal property taxes, parking citations, or other fees.

However, in FY 2013, DMV imposed a one-time extension initiative where the customer pays a

$10 administrative fee while paying off the delinquent fees at the local entities. Additionally, the

registration fee is prorated during a one-month period.29 This is an area where the DMV could

create an incentive for its customers while potentially boosting its revenue. Between FY 2013

and FY 2014, there was a 57 percent increase in revenue under this revenue class; however, the

revenue in FY 2015 was increased by only 9 percent. If the DMV raises the one-month extension

fee from $10 to $30, this can boost its revenue and better assist local entities in the collection of

delinquent revenue. With this proposal, the DMV also motivates the customers to pay the

original amount on time without requesting an extension and allocate this money to pay off their

29
Virginia Department of Motor Vehicles Denial of Registrations or Renewal

15
delinquent payments at the local entities. Due to this, there might be a decrease in the number of

customers who opt for a one-month extension. However, the revenue collected from the

registration extension administration fee should at least offset or improve the revenue from the

previous fiscal year due to an increase in the one-month extension rate.

Figure 7 (Source: Commonwealth Data Point)

To strategically plan for the Information Technology Modernization project, the DMV

should establish a technology fee or surcharge. This would generate a dedicated revenue source

for the DMV system modernization effort. As described in the DMV 2012-2014 Strategic Plan,

the agency has been facing several information technology challenges, such as the aging

systems, infrastructure and security.30 One of DMV's IT future projects is the implementation of

Information Technology Modernization project as a path to transform the system that is more

than 20 years old. For FY 2014, 43 percent of all renewals and 97 percent of three year renewals

were completed online.31 Hence, finding a fund to build a robust information system must be

30
DMV 2012-2014 Strategic Plan (March 13, 2014).
31
Report of Vehicle Activity for ABC System for the Period of 7/01/2013 Through 6/30/2014 (July 21, 2014)

16
planned accordingly to improve the unsupported server operating systems and network security

that DMV has been facing. If the funding for this proposal is not planned in advance, the agency

may encounter several risks such as security risk, reputation risk, and financial risk. The risk for

security is high due to the personal identifiable information such as social security numbers

collected on its website. Similarly, the risk for reputation is also high because customers will lose

trust in the DMV for safeguarding their data, which may lead to more face-to-face transactions

and less online transactions. Thus, the financial risk increases because the operating costs will

have to increase in order to meet the demands of the customers who physically visit the DMV

centers versus conducting transactions online. A practical opportunity that the DMV can adopt is

to start assessing a $1 technology fee for all of online DMV transaction that requires a fee. These

common and mandatory transactions include vehicle registration renewals, plate purchases,

driver's license renewals, and record requests. In FY 2014 alone, 1,694,798 out of 4,923,144

transactions (43.2 percent) for vehicle registration renewal were conducted online.32 The DMV

could utilize this preferred service, online, used by customers to impose a technology fee, where

it can potentially raise over 1.5 million dollars per year under this type of service alone. Given

the importance of online transactions to the future of the Department, maintaining IT security is

critical. The revenue collected from this fee could be used to further enhance online services

allowing additional customers to migrate online and reduce the need for additional customer

service centers. The technology fees collected from more than 30 available online services such

as driver’s license renewal, compliance-related transactions, and online record requests is likely

going to offset the cost of the Information Technology Modernization project. Even though there

will be an initial resistance from the customers to paying the $1 technology fee up-front, the

32
DMV Business Profile: a snapshot of DMV’s performance during fiscal year 2014

17
DMV will eventually receive a buy-in from the customers because of the long hours that they

will save by not waiting in line at the customer center, money (e.g. gas, stamp), and tougher

safeguarding of their P-II data. From the customer’s standpoint, these will be good benefits that

justify paying a $1 technology fee. Imposing this technology fee not only benefits the customers,

but also the DMV itself. When there are a higher number of transactions conducted online, the

DMV’s operating costs at the customer service centers will decrease. In FY 2014, about half (49

percent) of DMV expenditures were allocated to the customer service centers. This is where the

DMV should impose the 10 percent reduction in its budget. When the DMV shifts its focus

toward responding to more online transactions, they can concentrate on reducing fixed assets

such as the customer service centers in less populated areas throughout the state or merging the

customer service center locations into one to reduce rental costs, employee salaries and benefits,

and other operating costs. With this reduction, the DMV can re-allocate that bucket of money to

enhance its online presence and funding for the Information Technology Modernization project.

In April 2012, APA found that Virginia DMV spent 28 million on a customer service

system to increase efficiency that started in 2005, before deciding that the system was flawed and

quietly adopting a new plan.33 Within the same year, APA also found that the Account

Department paid credit card bills without validating the billed amounts. Purchases made by

cardholders were over their monthly transaction limit without a supervisor’s prior approval.

Furthermore, cardholders did not prepare monthly reconciliation to ensure the purchase price

match the charge on the credit bill.34 Since 2012, there have been no other findings on funds

being spent inappropriately.

33
Progress Report on Selected Systems Development Projects in the Commonwealth (March 2012).
34
Commonwealth of Virginia Single Audit Report for the Year Ended June 30, 2011 (February 9, 2012)

18
 The main area of the budget that should be increased is information technology, which

accounted for only 13 percent of DMV expenditures in FY 2014. In 2015, APA found that

Northrop Grumman, who provides the DMV “with installation, maintenance, operation, and

support of IT infrastructure components such as server operating systems, routers, firewalls, and

virtual private networks,” did not meet the Commonwealth’s Information Security Standard,

SEC 501-09.35 The increase in IT funding will provide the DMV the financial support to improve

its current IT infrastructure and the online services to be user-friendly for customers. If there are

problems with the IT system, this will create a backlog in transactions and increase the repair

costs. In early 2015, the DMV was forced to close all of its 75 offices across the state due to

unexpected problems with the state’s computer network.36 As a result, the customers could only

conduct some of their transactions online. In another scenario, a state report shows that 866,000

customers go to Virginia DMV unnecessarily when they could have conducted some of their

transactions on the DMV website. This is possibly due to the online portal being cumbersome

and unfriendly to some customers and the risk of data breach. An increase in IT funding for this

area will allow the IT developers to improve its online portal and make it more appealing, user-

friendly, and efficient, where it will encourage the customers to go to it as a first resort.37 Thus,

this additional funding should be used to improve security for DMV’s databases, portals, and

sites so that customers’ sensitive data such as social security number and credit card numbers are

protected. Although the increased funding in the current information technology system is

separate from the proposed Information Technology Modernization project, it will ensure that

short-term problems such as outages or data breaches are improved and encourage more

customers to conduct their transactions online when the option is available. Thus, reputational

35
Audit of the Agencies of the Secretary of Transportation for the year ended June 30, 2015 (December 15, 2015).
36
Computer problem forces Va. DMV offices to shut down (January 31, 2015).
37
Report: 866,000 customers go to Virginia DMV unnecessarily (October 13, 2015).

19
risk and financial risk can be mitigated based on this budget justification for the current IT

environment.

AGENCY’S FISCAL CAPACITY AND STABILITY

The DMV’s fiscal capacity has remained fairly stable between FY 2009 and FY 2013. In

the last two FYs, the DMV expenses slightly outweighed its revenues. Aside from that, the DMV

revenue has steadily increased since 2009. Its major revenue sources are derived from the Rights

& Privileges and Taxes which are considered reliable sources of revenue because they are

essential expenses. The Virginia Transportation Research Council forecasted that the population

“will grow by about one third from slightly more than 8 million to between 10.3 million and 10.9

million” in the state.38 Hence, the DMV revenue, such as vehicle registration fees, identification

card, vehicle sales and use tax, will expect an increase due to the increase in population.

Metropolitan areas such as Northern Virginia, Fredericksburg, Richmond, or Hampton Roads

will account for 76 percent of the population growth between now and 2035. [13] It is

recommended that the DMV increase its online presence by offering additional categories of

DMV transactions, provide customer service online through live chat, cut its customer service

centers at the less populated area, and gradually expand its customer service centers in the most

populated areas to keep pace with the population growth because certain DMV transactions still

require the physical presence of the customers. The DMV should also conduct a cost analysis of

its business process and programs to determine potential cost savings that could be used in other

critical areas such as the expansion of customer service centers and the replacement of the

current IT infrastructure. For example, the DMV can calculate call center outsourcing costs and

compare that with the current in-house costs to determine which method provides more cost

savings and return on investment. Overall, the DMV fiscal capability will continue to remain
38
Virginia’s Long-Range Multimodal Transportation Plan (January, 2010).

20
stable, and if management is willing to take appropriate steps in identifying relevant

opportunities for cost savings, then the money can be reserved and allocated for other critical,

unexpected, and future needs.

21
 Works Cited

(B. Brubaker, personal communication, February 12, 2016)

Council on Virginia’s Future. (2014.) Strategic Planning Report, Agency Strategic Plan, Department of
Motor Vehicles 2008-2010. Retrieved from
http://vaperforms.virginia.gov//agencylevel/archive/AGY154_2008-2010StrategicPlan.pdf

Council on Virginia’s Future. (2014.) Strategic Planning Report, Agency Strategic Plan, Department of
Motor Vehicles 2010-2012. Retrieved
from http://vaperforms.virginia.gov//agencylevel/archive/AGY154_2010-2012StrategicPlan.pdf

Council on Virginia’s Future. (2014.) Strategic Planning Report, Agency Strategic Plan, Department of
Motor Vehicles 2012-2014. Retrieved
from http://vaperforms.virginia.gov//agencylevel/archive/AGY154_2012-2014StrategicPlan.pdf

"Commonwealth of Virginia Single Audit Report for the Year Ended June 30, 2011." Auditor of Public
Accounts Commonwealth of Virginia. 2011. Web. 30 Mar. 2016.
<http://www.apa.virginia.gov/reports/CommonwealthOfVirginiaSingleAuditReport _2011.pdf>.

Commonwealth Data Point. (2016) Revenues By Agency and College, Revenues, Transportation,
Department of Motor Vehicles (FY2016-FY2003) [Data File] Retrieved from
http://datapoint.apa.virginia.gov/rev/rev_agy_srccls.cfm?AGY=124

Lee, Robert D., Ronald Wayne Johnson, and Philip G. Joyce. "Budget Preparation: The Expenditure
Side." Public Budgeting Systems. Burlington, MA: Jones & Bartlett Learning, 2013. 207. Print.

Mavredes, Martha S. "Agencies of the Secretary of Transportation Report on Audit for the Year
Ended June 30, 2015." Auditor of Public Accounts Commonwealth of Virginia, 15 Dec.
2015. Web. 30 Mar. 2016. <http://www.apa.virginia.gov/reports/CTF2015.pdf>.

Olivo, Antonio. "Computer Problem Forces Va. DMV Offices to Shut Down." The Washington Post. 31
Jan. 2015. Web. 30 Mar. 2016. <https://www.washingtonpost.com/local/computer-problem-forces-
va-dmv-offices-to-shut-down/2015/01/31/0e5fd69e-a96a-11e4-a06b-9df2002b86a0_story.html>.

"Progress Report on Selected Systems Development Projects in the Commonwealth." Auditor of Public
Accounts Commonwealth of Virginia. Mar. 2012. Web. 30 Mar. 2016.
<http://www.apa.virginia.gov/reports/SystemDevelopment_March2012.pdf>.

Report of Vehicle Activity for ABC System for the Period of 7/01/2013 Through 6/30/2014. Rep. Web.
The team obtained the report from DMV Media Liaison, Brandy Brubaker, on April 5, 2016.

Secretary of Transportation (2016). “Transportation Agencies”, Retrieved from

https://transportation.virginia.gov/agencies/transportation-agencies/

Senate Finance Committee Staff Power Point (2006) Understanding Virginia’s Budget Process
Downloaded February 29, 2016 from sfc.virginia.gov/pdf/understandingvirginiasbudgetprocess.ppt
Virginia Department of Planning and Budget (2016) Frequently Asked Questions 2008-2010
Retrieved from http://dpb.virginia.gov/budget/faq.

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Suderman, Alan. "Report: 866,000 Customers Go to Virginia DMV Unnecessarily." The Virginia-Pilot.
13 Oct. 2015. Web. 30 Mar. 2016. <http://hamptonroads.com/2015/10/report-866000-customers-
go-virginia-dmv-unnecessarily>.

Virginia Department of Motor Vehicles. (2016). “About the Commissioner” Retrieved from
http://www.dmv.virginia.gov/about/#commishbio.asp

Virginia Department of Motor Vehicles. (2016). “Agency Overview” Retrieved from

http://www.dmv.virginia.gov/about/#about_dmv.asp

Virginia Department of Motor Vehicles. (2016). “Denial of Registrations or Renewal” Retrieved from
http://www.dmv.state.va.us/vehicles/#denials.asp

Virginia Department of Motor Vehicles. (2015). “Organization Chart” Retrieved from

http://www.dmv.virginia.gov/about/org/dmv_org_chart.pdf

Virginia Department of Motor Vehicles. (2016). “Reinstating Driving Privileges” Retrieved from
https://www.dmv.virginia.gov/drivers/#reinstate.asp

Virginia Department of Taxation. (2016). “Motor Vehicle Rental Tax” Retrieved from
http://www.tax.virginia.gov/content/motor-vehicle-rental-tax

Virginia Department of Motor Vehicles. (December 21, 2015). “Virginia DMV: Now Serving ... Smiles!
Technology Advancements Enable Customer Smiles in License Photos” Retrieved from
http://www.dmv.state.va.us/general/news/pressReleases/#/News_Article:10180

"Virginia’s Long-Range Multimodal Transportation Plan." VTrans. Office of Intermodal Planning and
Investment, Jan. 2010. Web. 30 Mar. 2016. <http://vtrans.org/resources/vtrans_2035_report.pdf>.

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