The proposal to close Haines’ Division of Motor Vehicles office, along with offices in several other rural communities, has hit bipartisan opposition in the Alaska Legislature.

Gov. Mike Dunleavy’s administration has said it expects to save roughly $500,000 through the closure of offices in Haines, Tok, Valdez, Eagle River, Homer and Delta Junction. On March 23, a House budget subcommittee voted to reject the proposal.

For Rep. Sara Hannan, who represents Haines, the governor’s proposal to close DMVs is a misguided attempt to outsource government responsibilities to private industry.

“If you look at government functions, DMVs make money. The system of motor vehicles makes so much money that we move money out of DMV and into the general fund every fiscal year,” Hannan said. “This isn’t a budget issue (for the governor’s administration), it’s a policy belief.”

Closure of DMVs in the six communities would force residents either to travel to other towns or contract the services of a private vendor for DMV activities requiring in-person visits, including first-time license applications, REAL ID applications, and renewals for residents 68 and older.

Hannan said the closures would place an unfair burden on residents of rural towns.

“When you are talking about the required government safety measures—registering vehicles, obtaining identification—we shouldn’t say some people will have to do it via private vendors and always have additional charges. The purpose of having a DMV is to allow people to comply with government requirements. To put that under private vendors doesn’t meet requirements of governing,” she said.

While residents of other targeted communities have the option of driving, in some cases hundreds of miles, to offices elsewhere, Haines residents don’t have the option due to the U.S.-Canada border closure. The nearest DMV offices are in Skagway and Juneau.

Last year, pandemic considerations closed the Haines DMV from March to October.

Resident Tammy Jobbins was heavily involved in the effort to contract a private vendor to conduct road tests for teens this past fall. The vendor’s services were funded by a portion of the Haines Borough’s CARES Act funds.

“(The lack of DMV) was definitely a hardship,” Jobbins said. Skagway’s DMV wasn’t an option as the community was closed to visitors, and Jobbins weighed the possibility of traveling to Juneau.

“We would have had to take a car on the ferry and stay in a hotel, and the cost of it was just ridiculous—well over $1,000,” she said, adding that the price would likely be even more in winter with reduced ferry service.

In addition to the price difference, Jobbins said she didn’t think it fair to ask teens to adapt to Juneau driving without the opportunity to practice. “They have been driving (in Haines) for two years and are unfamiliar with driving on two-lane highways, with stoplights and merging. They know the roads here and should be allowed to take the test here.”

Although the proposal appears unpopular among legislators, it’s too soon to say whether the final version of the state budget will include funding for the Haines DMV office, state Sen. Jesse Kiehl said.

“I have been talking with the chair of the Senate budget subcommittee (that oversees the Department of Administration’s budget). I’m feeling good about what the Senate version will be,” Kiehl said. “But there’s a lot of steps left in this process, and the governor could still pull out his veto pen.”

Two state House Representatives have introduced legislation to help address the proposed DMV closures. Anchorage Democrat Rep. Zack Fields’ bill would make it illegal to close offices opened prior to Jan. 1 in communities with at least 850 residents. Homer Republican Rep. Sarah Vance’s bill would repeal requirements that seniors visit DMVs in-person to renew licenses.