Revenue department defends digital license‑plate costs as members ask why plates are mailed
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Summary
The Department of Revenue told the budget committee its license‑plate and credentialing requests are driven by increased production and distribution costs tied to the digital-plate program; members asked for fee-flow detail and historical cost comparisons for on‑site pickup versus mailing.
The Kansas Department of Revenue presented its FY2026 revised estimate and FY2027 request to the Committee on General Government Budget, highlighting vehicle‑division spending tied to the state's digital license‑plate program and supplemental requests to cover increased production and distribution costs.
Fiscal analyst Jacob Crespi summarized the agency's budget: an approved FY2025 figure of about $128 million and an agency‑requested total of roughly $137 million for FY2027, an increase the agency attributed primarily to division of vehicles operating‑fund needs. The department said license‑plate production and distribution pressures drove supplemental requests of $4,000,000 (production/postage) and $2,500,000 (contractual services for implementation and distribution), while other requests include $920,000 in division operating funds for market‑rate salary adjustments and vehicle production costs.
Members asked why plates are mailed to owners and whether the fee flow is appropriate. Secretary Mark Burkhart told the committee the shift to mailing plates dates to a 2018 statutory change and was meant to relieve county treasurers of large inventories; he said county fees collected go into the State Highway Fund, while the Department of Revenue pays production costs from the Division of Vehicles operating fund. “It is statutory that the Department of Revenue mails the plate to the vehicle owner,” the secretary said.
Legislators requested detailed monthly fee‑fund statements and a historical comparison of on‑site pickup versus mail distribution costs. Representative Melton noted agency modeling that estimated the software improvements equate to about 1.5 staff, but agency representatives said software cannot replace human interactions with taxpayers and county appraisers, and that the agency currently has around 34 open FTE positions to fill.
The committee also pressed the department for a job‑title and FTE breakdown by division, a clearer breakdown of “aid to locals” activities, and documentation showing how administrative staffing levels align with processing volumes. The Department agreed to provide additional detail to the committee staff.