HF 2086 DL Fee Retention

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HF 2086 DL Fee Retention

• - Informational Bulletin -
• Sorting Fact From Fiction
• February 2004

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Outline / Presenters

• Introductions Lana Taylor
• Background / History Wayne Walter
• Committee Facts Findings Darrell Bauman
• Myth vs. Fact Dave Jamison / Kim Reynolds
• ISCTA Position Jeff Garrett
• Q  A
• Boats / Snow Mobiles / ATVs Lana Taylor
• Adjourn

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Background / History

• 1993 - 6 pilot counties began issuing DL
• fee retained is 5 per DL issued.
• 1997 - 42 more counties
• fee retained reduced to 3.75.
• 2001 - 33 more counties
• total counties issuing to 81 - DOT maintains 18
  permanent stations.

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Background / History

• 2003 - SF 97
• Temporary increase 3.75 to 5
• Reverts to 3.75 July 1, 2005
• DOT, in consultation with ISCTA, to conduct a
  study of the financial effect the program has on
  counties.

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Background / History

• Summer 2003
• ISCTA Driver License Committee works with DOT to
  analyze the financial effect of DL issuance to
  counties.
• Two separate studies
• Timed Activities Study or TAS
• Total Cost Study or TCS

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Facts and Findings

• Counties Average Cost (based on TCS)
• Salary Benefits 10.77
• Salary Benefits PLUS direct cost 11.28
• Salary Benefits PLUS direct cost PLUS indirect
  cost 13.91
• Counties Average Cost (based on TAS)
• 3.85

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Activities Not Timed

• Any testing (written or drives) that is not
  passed
• Phone Calls
• Operational Activities
• Meetings with DOT Supervisors
• Providing copies for Supervisor hearings and GDLs
• Training in house and regional

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Facts and Findings

• DOT Cost (based on TAS)
• Mason City (22,320 total cards) 3.68
• Clinton (15,934 total cards) 3.46
• Des Moines (147,094 total cards) 3.61
• DOT STATION AVG 3.58

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Key Points

• The Treasurers TAS figure of 3.85 compares
  closely to the DOT TAS figure of 3.58
• 3.85 (TAS) vs. 10.77 (TCS) not valid comparison
  many activities were not timed and therefore
  not included as costs in TAS

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Apples to Apples

• Comparing TAS to TCS is not apples to apples
  but you can get there.
• Clinton station - Example
• Average time per Pre-screen 3 minutes
• Number of Pre-screens in 2003 x 1,137
• Equals total time on Pre-screen 3,411
• Total All Timed Activities 177,846 minutes
  (2,964 hours)
• 2,964 hours 1.43 full time equivalents (FTE).
• Actual FTEs at Clinton 4 which equals 9.94 per
  DL

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Apples to Apples
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Apples to Apples
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Perception / Myth vs Fact

• Treasurers wanted this (DL) and said they could
  do it for free.
• We just gave you an increase last year, now you
  are asking for another fee increase!
• Counties are always seeking to increase fees on
  the public.
• County Treasurers are attempting to underwrite
  other office functions through DL fees retained.
• The ISCTA Study is flawed and invalid.

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ISCTA Position

• ISCTA is not asking that the RUTF totally fund
  the average cost to counties. Counties are
  putting resources into this as a partner in
  providing DL service.
• At 7 per issuance, counties are willing to do
  this at less cost per card to the RUTF than the
  average cost of DOT issuance

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ISCTA Position

• The cost to counties is real and documented and
  exceeds the county per card retention regardless
  of the rate. Every dime increase in the county
  portion is property tax relief
• For every card issued by counties, the cost to
  the RUTF would be capped at 7. For every card
  issued by DOT, the RUTF pays 100 of the cost.
• A survey of ISCTA members indicates a significant
  degradation in CDL services if counties are
  unable to recover more of their cost through the
  amount of DL fee retained.

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ISCTA Position

• Approximately 1,200,000 DLs issued in Iowa
  annually.
• Counties issue roughly 35 of that total in the
  81 counties
• 7 vs. 5 financial impact on RUTF is
  approximately 800,000 annually
• FY 2004 DOT Budget shows 526,000 savings to RUTF
  as a result of DL issuance being shifted to
  counties (just from last 33 counties coming on
  line)

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QA
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Boats / Snow Mobiles / ATVs