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Transportation budget hearing probes MDOT IT consolidation, solar plan and MVA fee pressures
Summary
Acting MDOT leaders described IT consolidation, a $50 million multi‑year solar rollout and workforce apprenticeship programs; MVA reported improved customer wait times but said recent credit‑card and postage fee spikes and a one‑year registration option drove a FY26 deficiency request.
At the Transportation and the Environment Subcommittee’s Feb. 26 hearing, the Maryland Department of Transportation (MDOT) secretary’s office and the Motor Vehicle Administration (MVA) defended proposed FY27 budgets while answering questions from lawmakers about IT consolidation, a new MDOT solar implementation program, fee increases and cost‑recovery requirements.
DLS told the subcommittee MDOT’s FY27 secretary’s office operating budget rises to about $167 million and the PAYGO allowance to $87.4 million, noting large first‑year cash flows tied to a $50 million transfer for solar implementation. The analysis described a recent transfer of Office of Minority Business Enterprise responsibilities to the newly created Department of Social and Economic Mobility and recommended MDOT explain how the transferred Transportation Trust Fund support will be tracked.
Acting MDOT Secretary Katie Thompson said about 270 IT staff have been consolidated into the Secretary’s Office to centralize cybersecurity and reduce legacy costs; she highlighted apprenticeship and a $24 million "Road to Careers" program to expand skilled trades. Deputy Secretary Samantha Biddle outlined how the $50 million solar implementation transfer will be phased across fiscal years and said MDOT has already installed pilot PV systems at several facilities.
On MVA, the DLS presentation noted a FY27 operating allowance near $268 million and flagged cost‑recovery projections that will require higher fees in later years unless assumptions change. DLS also recommended MVA explain a proposed $2.4 million efficiency appropriation covering credit‑card processing fees, postage and license plate/ID materials.
MVA Administrator Chrissy Neisser told the committee the administration’s customer metrics remain strong — average wait times of about five minutes and high customer satisfaction — and said the apparent increase in total visit time reflects the agency encouraging customers to complete multiple transactions in one visit. Neisser explained an FY26 deficiency is largely driven by higher credit‑card processing fees and postage costs after offering a new one‑year registration option that changes sticker and mailing costs; she said cost pressures are monitored and that the agency will continue to seek efficiencies.
Lawmakers asked about the rise in vehicle registration costs and the relationship of those fees to the Transportation Trust Fund (TTF). MDOT staff noted the general assembly set fee adjustments to offset declining gas tax revenue that funds the TTF and described options to assist customers, including payment plans and the one‑year registration choice. The MVA also described recent technology rollouts: real‑time verification with insurance data and expansion of mobile driver’s license acceptance at some venues.
The hearing paused at the end of the transcript for a committee vote on House Bill 437.
