RALEIGH — The N.C. House Select Committee on Government Efficiency heard updates from various state officials related to improving operations of the North Carolina Division of Motor Vehicles during a three-hour hearing last Wednesday.
Testimony was provided by Vernon Utley, deputy auditor of performance at the Office of the State Auditor; NCDMV Commissioner Paul Tine; and N.C. Department of Transportation (NCDOT) Secretary Daniel Johnson.
DMV wait times, funding issues for the agency, modernization of IT systems and questions of whether the NCDMV should be split off from the NCDOT were at the center of the hearing, which opened with a review of the department’s recent state performance review audit.
“North Carolina’s DMV serves more than 8 million people and helps generate $2.2 billion in revenue that supports our state transportation system,” said Utley. “So when DMV service slips, families and employers and the broader economy feels it.”
Tine gave a presentation highlighting progress and improvements made since he took over the agency following former Commissioner Wayne Goodwin’s departure earlier this year.
He described significantly reducing customer wait times and enhancing operational efficiency through items like new scanners, triage tablets and working on a system for customers to upload necessary documents before in-person appointments.
“The average wait time at DMV offices has already dropped to an hour and a half,” Tine said. “That’s down from waits of nearly three hours earlier this year and a wait time of about two hours in July.”
The audit report showed average wait times of 1 hour and 15 minutes, and 14% of NCDMV visits went beyond two and a half hours in fiscal year 2025 — a 79% increase from 2019. Also, nearly half of transactions were made at a location other than a customer’s nearest office.
Tine also noted that teen driver services are one of the largest uses of customer service time, and changes are planned for this month that allow obtaining graduated licenses online to reduce wait times.
Tine credited a rapid hiring initiative through $1.2 million in legislative appropriations, which added more than 60 new examiner positions within a month and lowered the vacancy rate from 10.9% in April to 4.1%.
“Our team is focused on quickly hiring and training examiners to improve service and reduce wait times for North Carolinians,” said Tine. He also said his focus is “to get people through the door as quickly as possible.”
Tine’s presentation highlighted process enhancements, including upgrades to the SMS sign-in system that allows customers to establish a place in line and caps capacity limits to avoid turning away customers, as well as full-day acceptance of walk-ins — 87% of daily visitors arrive without appointments, he said. Additionally, Saturday hours at some offices have been expanded.
“The DMV is also working to develop an AI chatbot to help with online transactions and information ahead of drivers’ office visits,” Tine told lawmakers.
Additionally, Tine described efforts to address burnout and boost staff morale through listening tours at offices and increased internal communication.
“We’re nowhere near where we need to, but the tone in the offices is better,” he said.
Tine praised Senate Bill 245, which allowed for more online services to ease wait times at NCDMV offices.
“In the last three weeks, 26,000 people have done online transactions that would not have been able to do so previously to this legislation being enacted,” Tine told the committee. “So it’s seriously impactful what you all have enabled us to do.”
Tine added, “Just to put that in perspective, 8,000 is how many we do each day in all of our offices across the state. So basically, you’ve given us an extra day of full capacity around the state by moving those online.”
Near the end of the hearing, Committee Co-chair Rep. John Torbett (R-Gaston) praised Tine’s efforts.
“I believe that perhaps, once and for all, you’ll be able to transition the Department of Motor Vehicles from a government service to a customer service for the people of North Carolina,” Torbett said.
Discussions also highlighted funding mismatches between the NCDMV and the NCDOT.
Utley had underscored the audit found “the current governance structure under DOT creates barriers to effective DMV operations.” Specifics included the NCDMV having “lacked a strategic voice in decision-making,” as well as limited authority in controlling its budget and “routinely” being excluded from “key modernization” projects.
The state auditor’s August performance audit said NCDMV generates 30% ($2.2 billion) of NCDOT’s $3.7 billion in revenue, but NCDMV is included in 2.7% ($215 million) of NCDOT expenditures. Additionally, between 2019 and 2025, NCDMV requested 130 new staff positions, but only 40 (31%) were included in NCDOT budget requests.
“We’re putting together a comprehensive ask of the legislature that’s not just money, but it’s around prioritization in regards to what we do; some of it’s flexibility,” said Tine. “One of the things that we heard in here was how we get funded, and it’s been a discussion between representatives and the auditor. Having a percentage of revenue is something that should probably be looked at.”
It was also stated that funding for NCDMV has not kept up with the state’s population growth of 30% since 2010, with staff increasing by only 10% in comparison.
Near the end of the hearing, Torbett refocused on the NCDMV/NCDOT budgeting issue, stating, “We need to address a new financing model.”
Regarding IT modernization, auditors had reviewed NCDMV activities since 2015 and identified gaps like undefined requirements, absent business cases, delayed project plans, poor data management and overlooked quick “wins” such as website upgrades.
Legislative Fiscal Research staffer Aaron Cornell said NCDMV has received $160 million since 2013 across various projects for IT modernization, but what was spent up until that point was around $30 million to $40 million.
Some lawmakers asked if splitting the NCDMV off from the NCDOT would be helpful in solving budget issues, but Tine seemed opposed to that action.
“Separating would require significant resources and would distract from efforts to improve customer experience and operations at DMV,” Tine said. “DMV faces budgetary constraints that could be more effectively solved with other mechanisms.”
