The Oregon Department of Motor Vehicles budget could be reduced by $68 million per biennium by transferring most of its functions to private organizations. According to a soon-to-be released report from the Cascade Policy Institute in Portland, that figure could increase to $86 million per biennium if processing functions at the Salem central office were contracted out.

Patrick A. Hazel, author of Privatize the Oregon DMV, documents that DMV fees could be reduced by 14 to 17 percent. Hazel notes, "The figures given here are revenue neutral. That is, the reductions can be made without affecting net revenue, or funds dedicated to highway maintenance or safety programs."

Privatize the Oregon DMV, advocates that Oregon build upon the example set by Ohio. For nearly a decade, the Ohio Bureau of Motor Vehicles has allowed private "franchises" to offer virtually all services that the government-run offices do. Hazel maintains, "A strong incentive to provide excellent customer service exists: Each private franchise earns its revenue from a percentage of the transactions completed at its office."

Hazel wrote his report for the 1996 Oregon Better Government Competition, before the $700,000 in spending irregularities were recently announced. The Competition was organized by Cascade Policy Institute.