Carver County board weighs future of county-run license centers as deficits widen

County staff presented a decade of operational data showing Carver County’s two license centers — Chaska and Chanhassen — have swung from a surplus in 2016 to multi‑year deficits driven by state software changes, Real ID workload and a long‑term shift of easy transactions online.

“Starting back in 2016, the surplus was close to $400,000,” said Dave Frishman, property finance director. He told the board the county absorbed a sharp workload increase after Minnesota’s MNLARS rollout in 2017 and later Real ID requirements, adding staff and raising training and wage costs. The county received $350,000 in federal COVID relief in 2020 but has operated at a deficit since.

Frishman told the board the county has set productivity goals (a daily target moving from 24 toward 26 transactions per staffer) and added a training coordinator and other operational improvements. He also reported a ZIP‑code survey showing a large share of customers come from outside Carver County — “in Chanhassen 52% came from Hennepin,” Frishman said — which commissioners said complicates the local subsidy calculus.

Commissioners debated three options: keep operating the centers; solicit bids via an RFP to transfer operations to a private operator; or offer operation to a city partner such as Chaska. “If somebody else can do this, let them do it,” one commissioner said, urging an RFP. Other commissioners urged continued county operation, saying the service is essential and privatization could raise costs or leave complicated transactions underserved.

Frishman cautioned that appointments to act as a local deputy registrar are granted by the state and cannot be sold to another public entity; a county can continue the appointment or relinquish it. He also noted that private limited‑service offices (for example in Waconia) typically do not handle complex title transactions or driver‑license road tests, which drives complicated work to county facilities.

Several commissioners emphasized pressing the state to change fee sharing. Frishman highlighted recommendations from state reports: shifting a greater share of online filing fees back to local deputy registrars, and restructuring a $1 convenience/penalty fee so revenue could be shared with local offices. “The state gets the easy transactions,” he said; “we’re getting the harder ones.”

No formal action was taken at the work session; staff will continue to monitor volumes and bring options back to the board for further consideration, including possible RFP language or continued engagement with state legislators on revenue sharing and transaction fees.