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DPS warns revolving funds are depleted and Real ID subscription costs are unfunded
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Summary
DPS told the committee that revolving accounts long used to cover driver-license and registration operations have been largely drawn down; the department said Real ID subscription and maintenance costs total roughly $400,000 annually and the governor's proposal suspending some revolving accounts leaves a funding gap.
Department of Public Safety officials told the House Ways and Means committee that several revolving funds the department historically relied on are nearly depleted and that costs for the Real ID program are not covered in the governor's proposed budget.
Director Kay Enos told the committee the department has been using revolving accounts (driver's license, vehicle registration, armory, impound lot, insurance and other special funds) to pay for operations when the local appropriation was insufficient. She said those revolving accounts are "depleting very quickly" and that the department has used revolving funds to pay for contracts and one-time costs.
Enos and committee members discussed a recently executed Real ID contract with a vendor reported at $385,000; Enos said subscription and maintenance for Real ID would be roughly $400,000 annually. Committee members noted the governor's proposal showed revolving accounts suspended and diverted to the general fund, which would remove the department's usual source for those subscription and maintenance costs.
Enos provided a snapshot of special and revolving balances during the hearing: she reported a consolidated figure of about $505,136,655 in special funds (note: she said the figure is total in the account but also flagged it does not include the last two months of fuel and utilities) and said a motor-vehicle-specific revolving subaccount had a much smaller available balance (the committee later discussed balances on the order of hundreds of thousands for specific subaccounts and encumbrances tied to a $385,000 contract).
Committee members asked OMB to verify fund balances and urged transparency on how revolving and special funds are being used; OMB said the $3 million OIA allocation and other grant money cannot be allocated until formal grant documents are received.
