Program Enhancements and Other Budget Adjustments
Department of Motor Vehicles

The Department of Motor Vehicles (DMV) promotes driver safety by licensing drivers, and protects consumers and ownership security by issuing vehicle titles and regulating vehicle sales. The Budget proposes $959.7 million, all from non-General Fund sources, and 8,250 positions. This represents a decrease of $73.5 million and 39.4 positions from the 2007-08 Budget.


REAL ID ACT
 The federal REAL ID Act requires states to establish minimum standards for the creation and issuance of driver's license and identification (DL/ID) cards that will be acceptable for official deferral purposes, such as commercial air travel and entering federal buildings. These requirements are currently required to take effect May 11, 2008. According to the U.S. Department of Homeland Security (DHS), the final regulations implementing the Act are expected to be issued by February 2008. At that time, the California DMV will be in a better position to quantify resource needs for the budget year and submit a spring budget request.

The preliminary REAL ID regulations, released in March 2007, mandated states to fully implement the Act within five years, or by 2013. In response, the Administration raised concerns over federal funding for this effort and the time requirements for certifying the state's 24 million DL/ID cardholders. As a result, states were informed that the final regulations will provide for a substantially longer implementation period. This extension will help reduce the significant costs associated with the requirement that residents appear in-person at DMV offices to establish identity and obtain REAL-ID compliant cards. The DMV also is scheduled to award a new DL/ID card contract in 2008-09 that will provide for best practices in card issuance and security features, and also enable California to satisfy the REAL ID requirements.


OFFICE CONSOLIDATIONS
 The Budget includes $4.5 million to establish a Central California Telephone Service Center and Driver Safety Office in Bakersfield, which will allow DMV to reuse vacated space for field office space, and to establish a Consolidated Commercial Driver License Center in Central California to alleviate overcrowding and unsafe testing areas in several field offices.
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CHAPTER HIGHLIGHTS for Business, Transportation, and Housing Back to Top

 Proposed Workload Budget
 Proposed Budget-Balancing Reductions
 Other Special Session Issues
 Program Enhancements and Other Budget Adjustments
  Transportation Programs
  Transportation Revenue
  Motor Vehicle Account
  California Highway Patrol
 image of black pointing arrowDepartment of Motor Vehicles
  Business and Housing
  Department of Housing and Community Development
PRINTABLE BUDGET DOCUMENTS Back to Top
Budget Summary - Business, Transportation, and Housing (pdf * - 294K) -
Provides this entire Business, Transportation, and Housing Chapter in pdf format.
ADDITIONAL INFORMATION Back to Top
Proposed Budget Detail - Business, Transportation, and Housing
Displays Proposed Budget Detail information for Business, Transportation, and Housing.