McDonnell Proposes Some Higher Fees for Va. Drivers

By Bill McMorris, Virginia Statehouse News Tuesday, December 20, 2011

RICHMOND - Virginia drivers may see the cost of replacing a lost driver's license - or obtaining a temporary one - increase if fees laid out in Gov. Bob McDonnell's budget proposal are made law by the General Assembly.

The governor on Monday proposed a series of DMV fee changes his first two-year budget, including higher rates to replace registration and title documents for vehicles.

Gov. Bob McDonnell said the fee hikes are necessary to cover operating expenses for the services of the state Department of Motor Vehicles, or DMV, after Virginia extended its drivers license period to eight years from five in 2008.

"This is only to cover costs for existing operations," he said. "The obligation is to make sure that the fees match the service."

State budget forecasts estimate that the DMV will lose nearly $23 million in the next two years because drivers don't have to renew their licenses as often.

The governor's proposed hikes are expected to bring in an additional $10 million during the next two years.

Republicans have campaigned and achieved major election victories in the House of Delegates, state Senate and the governor's mansion on the promise of not raising taxes even when faced with a potential deficit of $1.5 billion. McDonnell claimed to do just that in his address to the Joint Money Committees on Monday.

The budget "funds operations through revenue growth and spending cuts without raising taxes," he told the audience of senators, delegates and department heads at his budget address here.

The governor's allies are behind the proposal, including House Majority Whip Kirk Cox, R-Chesterfield, who has opposed fee increases.

"That is something we've been very reluctant to do," he said. "The governor laid out the test, which is: Does the fee pay for the service? That is something we'll be looking into."

Mike Thompson, president of the Thomas Jefferson Institute for Public Policy, a nonpartisan, conservative nonprofit, said he is also inclined to support the fee hikes, despite his opposition to tax increases.

"A fee is for those who use the service, rather than an income tax, which applies to everybody," he said.

The philosophical difference between a tax increase and a fee hike does not do much to convince Richmond native Gwen Cox, 49, who said she feels DMV payments are no different than income or sales taxes.

"People have to drive for work, so you're going to have to pay it," she said. "This is a case of a politician saying one thing and then doing another once he's elected."

DMV spokeswoman Melanie Stokes said the average driver is not expected to see his costs increase. Fees associated with obtaining an initial driver's license or renewing one will not go up under the governor's proposal.

The $20 fee will, however, generate more income from what the DMV calls "limited duration drivers," those who seek temporary licenses. Examples of such drivers, Stokes said, are foreign-born students or diplomats in the country for a limited time. Now, the fee is $4 per year for that type of license.

The cost for a replacement title would go up from $5 to $10. Car owners also would face a $10 late fee for registering a vehicle after state deadlines.

Driver advocate AAA said it will be monitoring all transportation-related budget items throughout the 2012 session, though it has not analyzed the DMV hikes.

"The concern would be if the fees are equitable and if they are needed for services," AAA spokeswoman Georjeane Blumling said. "We will review and see how it would affect the driving population."

McDonnell opponent and House Minority Leader David Toscano, D-Charlottesville, said he was surprised that the governor could see the logic of a balanced approach for the DMV, but not state revenue in general.

"That's the real dilemma for the governor. You're going to have to raise taxes and revenue or cut spending or both," he said. "I think the DMV plan is a situation we're going to have to look at."

The proposed changes would not go into effect until 2013.

The General Assembly will have three weeks to digest the governor's 700-page proposal before it reconvenes Jan. 11.