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Taxation & Revenue asks for IT funding after automation project returned $97M in 90 days
Summary
The Taxation & Revenue Department requested recurring and nonrecurring funding for IT and systems upgrades and highlighted that a recent $2.4M automated collections project generated roughly $97M in recoveries within 90 days, allowing staff redeployment to customer service.
The Taxation & Revenue Department told the Legislative Finance Committee it will seek a mix of modest recurring increases and targeted nonrecurring investments in FY27 to modernize systems and maintain federal compliance for motor vehicle services.
TRD’s pitch: A department presenter summarized FY27 operating priorities including a $935,000 recurring shift to cover IT support costs, a $1.6 million general fund request to right‑size reliance on the MVD suspense fund, and contingency for potential employer health benefit changes. The department emphasized automation and system upgrades as key to handling increased workload with reduced staff capacity.
Automation result: TRD described a recent Fast Collection Services project (a $2.4 million C2 appropriation) that applied 96,000 automated recommendations to delinquent accounts and "yielded $97,000,000 in the first 90 days they were applied." The department said that automation let it permanently reassign 13 audit and compliance staff to customer service functions and produced measurable revenue for the general fund.
Specific nonrecurring requests: TRD asked for four primary C2 and technology investments including: a $4.1 million update to connect to a new AMBA interface (covering real‑time VIN and identity checks for MVD, essential to maintain REAL ID and CDL compliance), ~$2.84 million to finish a GenKFI (key‑from‑image) replacement begun last session, and about $2.9 million for an automated returns processing project (fast return services). TRD also requested ICIP and equipment funds for office remodels and high‑volume scanners.
Why it matters: TRD said the tax pipeline it administers has grown from about $11 billion to roughly $20 billion per year while FTE counts remained relatively flat and current vacancy rates are roughly 22–24%. Officials argued that automation investments increase collections and customer service capacity while reducing long‑term operating costs.
What members asked: Lawmakers probed how automation affects customer experience and staffing. TRD said many services (registration renewals, online renewals) are already available online, kiosks operate in Albuquerque, and online identity verification and proctored testing remain potential next steps; automation frees staff for higher‑value work such as call center service and levy processing.
Next step: Committee members signaled interest in the cost‑benefit demonstrated by the collection pilot as they evaluate TRD’s FY27 budget request during the session.
