New Jersey MVC considers fee hikes to close major budget gap

💸 NJ MVC is facing a major budget deficit

💸 Officials say they may have to raise fees

💸 There are no fee increases for now

TRENTON — Top New Jersey Motor Vehicle Commission officials say they may have to make major increases to fees for the first time in years to close a growing budget gap.

The MVC is facing a $50 million deficit for the 2025 fiscal year, a hole that is being plugged by Gov. Murphy's proposed $55.9 billion budget.

Unless major changes are made, the agency's revenues cannot cover its operating expenses, Chief Administrator Latrecia Littles-Floyd said to state lawmakers last week.

Rising operating costs and operation changes were expected to contribute to the deficit, Littles-Floyd said at the April 15 budget committee meeting.

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According to Littles-Floyd, officials have relied on cost-saving measures in recent years rather than increasing fees to avoid passing costs onto New Jersey drivers.

But the MVC can only cut so many costs before they begin to impact services, she said.

"We do know that we have to look at some of our fees long and hard. Although we didn't increase anything for fiscal year 25, we know that realistically we have to go back to the table and really take a look at where we can make some increases," said Littles-Floyd.

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There are no fee increases included for the upcoming fiscal year.

The last time the MVC raised fees was in 2020 when it increased vehicle registration fees by $1, NJ.com reported. Before that, the last major fee hikes were in 2009.

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