States Seek $1 Billion Down-Payment for Real ID

By Scott M. Fulton, III, BetaNews

March 21, 2007, 7:06 PM

Earlier this month, US Homeland Security Secretary Michael Chertoff extended the proposed deadlines for states to comply with the new Real ID regulations, which would require uniform ID card codes among states, and connectivity to a national database. At the time, he estimated states may incur up to $14 billion in expenses over the next ten years to comply with his department's directives.

So on Monday, the National Governors' Association petitioned the House Budget Committee to set aside an initial $1 billion from federal revenues, to handle the states' up-front costs.

"States will incur most of these costs ($11 billion) in the first five years," states a letter from NGA chair Gov. Janet Napolitano (D - AZ) and vice chair Gov. Tim Pawlenty (R - MN), "including $1 billion in up front costs to create the systems and processes necessary to implement the law and re-enroll all 245 million drivers' license and identification card holders before the 2013 deadline. While governors fully support improving the security and integrity of drivers license systems, Real ID is an unfunded federal mandate that violates the intent of the Unfunded Mandates Reform Act and should be paid for with federal dollars. We ask that your committees at a minimum provide $1 billion in budget authority to fund the initial costs of implementing Real ID in FY 2008."

The new deadline of December 31, 2009, is when states must begin the process of implementing changes to their drivers' licenses; in other words, new licenses do not need to be issued to every citizen by that date. So when everyone's renewal cycle has finally completed, it will be May 2013. In the meantime, the Real ID-style IDs and the state-specific versions will co-exist. If you think states adopting the new Microsoft Office was a problem, imagine what they may put up with during this four-year transition period.

The National Conference of State Legislatures continues to seek a 10-year re-enrollment period for citizens seeking new, Real ID-compliant drivers' licenses. That may actually increase the cost to both states and the federal government, though space those costs out over a far longer period.

A few days before Sec. Chertoff's announcement, Sen. Daniel Akaka (D - HI) introduced a bill that would repeal the Real ID act altogether, replacing it with a "negotiated rulemaking" timetable between state and federal officials, giving states greater input as to the format and content of the new ID system. The bill has garnered some heavyweight support, including from Sen. Judiciary Committee chairman Patrick Leahy (D - VT) and outspoken Commerce Committee member Sen. John Sununu (R - NH).

On his senatorial Web site, Sen. Sununu wrote, "The flaws of REAL ID are fundamental, and are slowly being realized by observers across the country. First, the law ignores a basic state right to determine standards and eligibility for issuing a driver's license. For the first time, federal mandates have been established for categories of eligible drivers, temporary licenses, information to be displayed on a license, and data collection by motor vehicle officials. Once again, the arrogance that pervades Washington has led to the preposterous conclusion that states are incapable of upgrading and implementing new standards themselves."

Sununu goes on to state his belief that creating a single drivers' license pattern would give counterfeiters - and potential terrorists - a single template from which to make copies.

Estimates are that the DHS may only have $40 million appropriated to assist states in the transition effort.