Secretary of State says BMV needs $2.5M carryover to finish phased modernization

Secretary of State Shenna Bellows told the Joint Standing Committee on Transportation that the Bureau of Motor Vehicles’ multi‑year modernization program depends on carryover language lawmakers commonly allow.

"If we don't have the carryover language, then we have to lay off programmers and we don't modernize," Bellows told the committee, saying the BMV’s phased approach uses contract programmers from a vendor, Guidesoft, to keep work on‑site and custom. She described phase one as replacement of the driver‑license back end (target go‑live this June), phase two as VIN decoders, address verification and dealer electronic titling pilots, and phase three as vehicle registration, motor carrier and dealer licensing modernization.

Bellows said the requested carryover—about $2.5 million—is drawn from prior appropriations that the BMV expects to have available at fiscal year‑end and is intended to preserve continuity with the contractor team that started work in fiscal 2024. Without the funds, she said, the department would need to slow or halt the project and risk losing trained contract staff.

Lawmakers pressed on whether modernization should be a baseline budget item instead of funded through carryover. Bellows said the department has relied on carryover historically and that carryover provides stability for multi‑year projects, while acknowledging the committee could consider alternative approaches in the next budget cycle.

Committee members asked for a written breakdown of estimated phase‑two costs and whether certain carryover items properly belong in the transportation committee’s packet. Bellows agreed to return with additional detail at the next work session.

The committee did not vote on the carryover request on Tuesday; members planned follow‑up testimony and language review at an additional session later in the week.