1. Developing Revenue Streams Post real ID Where do we go from here?

2. Background • “Real ID”—Department of Homeland Security requirement that all adults obtaining or renewing a Driver’s License or ID card during the 2009-2014 authorization cycle must show a current birth certificate, passport and other documentation linking birth identity to identity listed on Driver’s License.

3. Impact in Utah • Vital Records offices saw an increase in fee revenues from the demand for new copies of certified records • On average, demand and fees were about 20% above pre-2009 levels • Increase in revenue not just for certified copies of birth records, but also copies of marriage abstracts, filing delayed birth applications, completion of adoption paperwork and court ordered name changes

4. Costs and Revenue Retention • While revenues increased, costs also increased • Technology costs • Staffing costs to keep up with demand • Great Recession and demand for government services • Increased demand for Medicaid/CHIP • Increased demand from other Public Health services • Less Revenue Retention in VR for cushion

5. Customer Demand Study • Performed an analysis of sample of requests completed from July 1 to Dec 31, 2012 • “Why are you purchasing this birth certificate today?” • Counted the number who indicated BC was for driver’s license purposes • Analysis was of mail/counter requests • Inference of online (SILVER/VitalChek requests) based on individual’s age and last time a purchase was made

6. Reality Check June 2013 • Approximately 22% of mail/counter requests were for Driver’s License purposes • The older the individual was, the more likely the request was due to the need to meet REAL ID requirements • This was especially true of our oldest population—those 75 years and older • Two oldest individuals were born in 1917 and 1921

7. Reality Check Continued • For online purchases, we estimated Real ID was the reason for roughly between 27-31% of requests • Almost all increase in adult filings of delayed birth certificate requests were to meet Real ID requirements

8. Revenue Impact • For FY ending June 30, 2013, dedicated credit revenues (fees) are estimated at $1.68 million or 78% of total OVRS revenue • Calculating in a 22% decline in demand, revenues could drop $370K or to $1.31 million • Extra revenues from delayed filings, court orders and adoptions will also decline • Overall, births have not returned to pre-recession levels and demand for services such as Medicaid have declined—two other sources of revenue

9. Possible Future Revenue Streams • General Fee Increases • Overall Fee increase is possible, Utah has not raised its birth/death certificate fees since before the recession • Increase in fee, decrease in demand if no built in driver • Targeted Fee Increases • Restructuring Adoption, Court Order, Delayed, Stillbirth and other tangential fees • New Fees • Delay of Filing

10. State PHMPI • DOH office Health Informatics has been working on a public health MPI which would house Vital Records and other DOH health records. The statewide MPI and other health-system level MPIs would have access to VR data through this PHMPI portal • Possible new revenue source • Precedent for using VR data in this manner (URS)

11. Revenue Framework • Existing VR databases (birth, death, marriage, divorce) contain a total of 4,357,517 records • Possible one time cost to MPI users for access to existing records • Even $0.50 a record would generate enough one-time funding for a sizeable VR improvement fund to be used for system upgrades • Average annual additions to databases (total 107,798) • Births—51,144 • Deaths—15,720 • Marriages—24,132 • Divorces—10,392 • Name Changes—6,440

12. MPI Revenue Con’t • Access to ongoing additions/changes to database • Annual charge would need to be in excess of $3.00 per record to replace anticipated loss in Real ID revenue

13. Other Revenue/Cost Savings • EVVE • EAB • General Fund monies for development • Reduction in staffing levels • Outsourcing IT and backroom costs • Real ID or other program authorization/reauthorization

14. Questions? Janice Houston Utah State Registrar jlhouston@utah.gov (801) 538-6262