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there is a significant increase in collection The DMV revenue forecast is grouped into <br /> costs as shown in row 6. The major source of three major categories reflecting the primary <br /> the change is the expected increase in costs revenue sources: vehicle registrations, driver <br /> related to the Federal Real ID Act and Senate licenses, and vehicle titles. Vehicle <br /> Bill 640, which was passed in 2005 and registrations make up the dominant portion of <br /> became effective July 1, 2008. Senate Bill DMV revenues, led significantly by <br /> 640 authorizes the Department to increase passenger vehicle registrations, which alone <br /> fees on certain transaction types by up to $3 account for 80 percent of vehicle registration <br /> to cover the cost of implementing the revenues and 40 percent of total DMV <br /> legislation. Beginning in July of 2008, fees revenues. Registration revenues, as reported <br /> for selected transactions were increased as in row 1 of Table 4, totaled $112.9 million in <br /> part of SB 1080, increasing revenue be about FY08, an increase of 1.2 percent over FY07. <br /> $1.5 million in FY09. FY09 revenues are expected to be $108.9 <br /> million, a decrease of 3.6 percent over FY08. <br /> <br /> Net DMV revenues, as represented in row 14, Beyond FY08, growth is expected to average <br /> show sudden drops in FY08 and FY09, and 1.2 percent throughout the forecast period. <br /> continue to decline through the forecast <br /> period, with the exception of FY13, as costs Figure 9: Passenger Vehicle Registration <br /> increase at a quicker pace than revenues under Revenues <br /> existing fee levels. <br /> 0 50% <br /> Rows 5 and 15 summarize the change in gross ~ 4°°% <br /> (row 5) and net (row 15) revenues from the ~ 30°'° <br /> ° <br /> previous forecast. The gross and net fiscal ~ $12°- 20~° <br /> ~ 10% CD <br /> year revenues are considerably lower than the <br /> $100 - 0% ~ <br /> previous forecast, especially in FY09. The ~ -1°% y <br /> primary sources for this decrease is the ~ <br /> implementation of the Governor's Executive ~ $60- <br /> Order in February of 2008, the ~ $40- <br /> ~ 2000 2005 2010 2015 <br /> implementation of SB 1080 in July of 2008, Fiscal Year <br /> and the sharp decline in the economy. The Passenger Vehicle Registration Re~nues Percentage Change <br /> Executive Order and SB 1080 changes have <br /> primarily led to a decrease in driver license Driver licenses include commercial and non- <br /> applications and renewals, whereas the commercial licenses ermits and related <br /> economic downturn has most stron 1 p ' <br /> . g y tests. Revenues, as shown in row 2, totaled <br /> impacted vehicle sales and subsequent title 32.2 million in FY08 a decrease of 4.4 <br /> . $ , <br /> applications. ercent over FY07. The FY09 revenues are <br /> p <br /> Continued refinements in the estimatin expected to be $28.6 million, a 10.9 percent <br /> g decrease over FY08. Revenue rowth in the <br /> equations have increased the overall accuracy g <br /> of our DMV forecasts both individuall and forecast period is expected to be mostly <br /> ' y ositive be and FY09 with an avera e annual <br /> collectively. However, currently with so much p y g <br /> uncertaint in the econom and the bi growth rate of 1.2 percent for FY09 through <br /> y y g FY15. The shift from afour- to ei ht- ear <br /> swings we've seen in fuel prices the forecast g y <br /> errors are somewhat more ronounced than in renewal cycle for commercial and non- <br /> e commercial licenses alon with SB 1080 <br /> previous forecasts. ' <br /> largely accounts for the negative growth <br /> exhibited during the FY07-FY09 period. The <br /> 14 <br /> <br />