Vermont DMV says FY26 budget will absorb FAST system maintenance, adds staffing and contract costs

Montpelier — The Department of Motor Vehicles told the House Transportation Committee on Feb. 13 that its fiscal 2026 budget reflects a shift from development to maintenance of the FAST core modernization system, producing higher ongoing contract costs, modest personnel reductions and several operational savings.

"We are here to talk about FY '26, budget for DMV," Commissioner Andrew Collier said when he began the agency presentation. He said the department is on track for fiscal 2025 budgeted-versus-actual performance and is not expecting a significant carry forward into the agency fund this year.

The department flagged a $1.5 million increase in contractual services tied to FAST as the system moves from development and implementation into a maintenance-and-operations phase. Collier said that transition is the reason the contractual line in the DMV budget will be higher going forward and that the agency expects the annual contracts line to be closer to $10 million rather than the $8 million shown in last year’s budget.

Renee Coda, DMV director of finance, confirmed the change in the contract budget and explained that implementation costs were paid from a mix of sources (including ARPA and IT modernization funds), while ongoing maintenance will be charged to DMV’s…