Corrections explains license-plate program, warns DMV single‑plate plan could cut revenue

Vermont Correctional Industries, which has produced license plates for the Department of Motor Vehicles since 1999, told the Senate Transportation Committee on Feb. 4 that changing state policy to require one plate instead of two could reduce the program’s gross revenue by roughly $200,000 to $300,000 and create inventory and timing challenges.

"We've been producing the license plates for DMV since 1999," said Greg Young, vocational outreach program manager for Vermont Correctional Industries, describing a production line at the Northwest State Correctional Facility that uses up to 11 incarcerated individuals. Young said workers are paid between $0.25 and $1.25 an hour, and that the corrections department offers a matching savings program that can double inmate savings up to $4,000.

The shop’s process includes running raw aluminum through a blanking line, applying 3M graphic sheeting, debossing numbers, inking, baking plates for about 20 minutes at 200°F, cooling and two quality‑control steps before boxing for shipment, Young said.

"So we made about 500,000 plates last calendar year," he said, adding that about 300,000 were pairs and 200,000 were single plates. Young gave DMV unit prices of $6.98 for a pair and $4.28 for a single plate and said the only meaningful savings between pair and single is the sticker cost, roughly $2.20 per plate.

Committee members pressed the Corrections staff on the financial impact. Marlene Battie, executive director of finance for the Department of Corrections, estimated the program would not see a 50% revenue reduction but would lose "$200,000 to $300,000" in gross revenue, and that the program’s net cash position could be vulnerable because the shop must buy raw aluminum in minimum lots (60,000 pounds) and minimum rolls of sheeting (40 rolls per order).

"When we purchase the...legend...the minimum number of rolls that we can buy is 40 rolls at a time, and they're roughly $1,300 per roll," Battie said, pointing to the fixed costs that do not disappear if demand falls. She warned that excess purchased material could sit unused and put the program at risk of a negative cash balance without legislative or DMV mitigation.

Committee members also discussed options for producing specialty plates such as the "Vermont Strong" series. Young said the first round of Vermont Strong plates used an additional sign shop and flat plates, but a later large, short‑turnaround order for Vermont Strong was produced out of Canada after Corrections determined it could not meet the schedule with its current in‑house capacity.

"We could probably make 200 plates in a week" of a specialty design once 3M approvals and design work are complete, Young said, noting a typical 3–4 month design and approval timeline.

The committee requested that Corrections provide a clearer scenario analysis — including per‑unit cost for limited runs, time needed to 'gear up' for specialty plates, and updated cash‑balance figures — before considering changes to plate requirements. VTrans and DOC staff agreed to follow up with estimates to help the committee evaluate whether a DMV one‑plate policy would unintentionally shift costs to Corrections.

The chair noted the legislature's crossover deadline and asked for timely numbers for committee consideration. No formal motions or votes occurred on the issue during the hearing.

Ending: DOC offered to facilitate visits to its plate shop and to provide the requested production and financial scenarios; committee members asked staff to provide figures quickly given upcoming legislative deadlines.