Secretary outlines DMV IT cloud migration, airport loan authority and HQ renovation plans

2118681 · January 15, 2025

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Summary

Transportation Secretary Shep Miller told the subcommittee the administration seeks authority to spend non‑general fund money on DMV headquarters renovation, advance DMV core IT modernization into the cloud with a multi‑stage plan and provide a loan authorization tied to Roanoke‑Blacksburg Airport master plan and FAA endorsement.

Shep Miller, Virginia secretary of transportation, briefed the subcommittee on department budget amendments affecting aviation, DMV headquarters renovation and the long‑planned DMV core IT modernization.

On aviation, Miller said the department has savings in the Department of Aviation from outsourcing and moving some publications online; the administration proposes reallocating those savings toward airport operational grants. Miller also described a proposed treasury loan authorization of up to $20 million to support a Roanoke‑Blacksburg Airport runway extension if the airport completes an FAA‑endorsed master plan that recommends lengthening the runway. Miller summarized the FAA process: an FAA endorsement in a master plan enables a sponsor to compete for federal funding, and typically the FAA funds about 80% of eligible project costs.

Miller said the budget would permit spending $16 million of a non‑general fund appropriation to advance the next phase of the DMV headquarters renovation but that officials were “taking a little bit of a second look” at the real estate decision before proceeding. On DMV IT modernization, Miller said the agency formed a cross‑functional team with the secretary’s office, DMV IT staff, VITA and contractors to move the DMV core system into the cloud. He said the Commonwealth has experienced multiple outages when redundant carrier lines were cut and that the older mainframe technology has driven the need to modernize.

Miller outlined a two‑stage IT plan: a proof‑of‑concept phase followed by a full build‑out. He gave an estimated total program cost of about $94 million (including internal staff time and contingency) and said the administration had spent roughly $600,000 to date; the governor’s budget authorizes the first $25 million of spending from a special fund to begin the work. Miller emphasized the multidisciplinary team overseeing the project and said the Commonwealth is committed to completing the modernization because the legacy system causes operational outages for DMV transactions and state agencies.

Questions from legislators focused on prudence of the HQ renovation decision and the need to ensure the IT modernization is executed carefully. The transcript records the secretary saying the administration will “take a little bit of a second look” on renovation timing and budgets before committing non‑general fund resources.