Continuously serving Kosciusko County since 1854
If the Bureau of Motor Vehicles can convince its customers to use new technology, the 49 license branches proposed to be closed around Indiana in the next several years may not have a big impact.
But if customers don't use new technology, it could mean more headaches.
Three of the license branches that may close are those in Syracuse, Nappanee and North Manchester.
Paul Stoelting, Syracuse town councilman, said, "As I understand it, it hasn't been approved yet. I hope it isn't. Warsaw is not very convenient for the people in this community.
"There will be a lot of people disadvantaged by that closing," he said.
Stoelting said the Syracuse license branch has perhaps five employees.
Councilman Bill Hane agreed with Stoelting on the possible closing.
"I don't believe it should be closed," Hane said. "Besides the long distance, I think it'll put more of a load on the Warsaw branch. It'll create longer lines."
The reason the license branches may be closing is simple -Êmoney.
"It's been no secret that the bureau has been running with a deficit. Over 84 percent of our budget is for staffing and expenditures," said Natalie Himbaugh, information specialist in the BMV public affairs office, Indianapolis.
She said a branch-by-branch fiscal study was performed over the last year to find a way to get out of the red.
"It was found that the smaller branches do not operate cost effectively," she said. "The larger ones are more cost effective."
As an example, she said, the Pendleton license branch operates at a 20-to-1 ratio - Pendleton has a population of 2,229 and their license branch deals with 55,000 transactions. On the other hand, the Kokomo license branch operates at a 3-to-1 ratio. Kokomo has a population of 45,000 and the license branch deals with 150,000 transactions.
Jean Northenor, executive vice president of Lake City Bank, was an initial member of the BMV commission when former Gov. Robert Orr decided to take the bureau out of politics. She said she doesn't understand how the BMV ended up so far in the red.
"It's kind of hard to understand. When we rebuilt the license branches years ago, they were making money," Northenor said.
As for using new technology, Hane said he doesn't believe older people will use the new technology.
"I believe," he said, "that maybe some of the younger people will, but not the older people. They are used to going in (to the office)."
Himbaugh said much of the walk-in business can be cut down by new technology.
"Standard vehicle registration renewal can be done by mail, the Internet, and, in a few months, they can be phoned in," she said.
"For most transactions, customers will have to go to the license branch in their county. Driver's licenses can be renewed by most branches in the state. Titles can be done at any license branch," she said. "Initial vehicle registerations must be done in the county in which you reside. Renewals can be done using any alternative, otherwise they must be done in the county in which you reside.
"If you use the new technology, it's possible you don't have to go to a license branch except for every four years," she said. "If more people use the technology, 60 percent of the transactions (now done at the branches) can be eliminated as far as traffic at the license branches.
"Keep in mind that (the closings) are a proposal," she said.
"Another thing we reviewed was our lease agreements," Himbaugh said. She said the BMV knew they could not necessarily control leasing costs, but leases were a consideration they needed to look at.
Another item the BMV looked at, she said, was the license branch distribution disproportion. As an example, she said, Lake County has a population of 500,000 and has nine license branches. Marion County has a population of over 800,000 with eight license branches. Tippecanoe County has one license branch and a population of 138,000.
"Considering both finances and demographics, our commissioner came up with a 10-point criteria," She said.
The criteria, in descending order of priority:
• At least one license branch per county.
• One license branch per 100,000 county residents.
• Centrally located in the most populated area.
• Located in the county seat.
• The ease of customer accessibility and the ease to thoroughfares.
• Availability of suitable lease space.
• Competitive lease rates.
• Distance between license branches.
• Mobility of population.
• Local labor pool and availability of workers.
As for the number of license branch employees, Himbaugh said, some would be reduced by attrition. Other employees would be moved to other branches or to other areas of the BMV.
"We have a decent attrition rate. No layoffs are expected," Himbaugh said.
Some of the branch closings are not proposed to happen until 2008. The Syracuse License Branch will not close until Sept. 2002 if the proposal is passed.
Himbaugh said the delays in closings were "due to the leases. When the leases expire, they will close."
Another reason some of the license branches will not close for a number of years, Himbaugh said, is to get new technology in place.
"In a couple of areas, like Lake County, two license branches are closing. Two license branches will be receiving self-service terminals like an ATM. We need time to get that new technology in place," she said.
Northenor said the idea for the self-service terminals at the license branches was hers originally. She said they teased her about it and nicknamed the terminal the "Jean Machine." But even with the new technology, Northenor said, there will still be headaches.
"Of course, it's going to be a problem. One reason is that people don't want to send in for their plates. They want to wait until the last minute because they have other things they want to do with their money," she said. "They want to deal with a teller, too."
The Syracuse license branch declined to comment and referred all calls about the closings to the public affairs office in Indianapolis.
