SC DMV director urges $100M modernization, warns of Real ID deadline and staffing shortfalls
April 30, 2025 | 2025 Legislative Meetings, South Carolina
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South Carolina Department of Motor Vehicles Executive Director Kevin Shwedo told the House Education and Public Works Committee that the DMV needs roughly $100 million to modernize its legacy IT system, warned of Real ID compliance deadlines that will affect air travel and federal access, and described staffing pressures that have produced a roughly 33% annual turnover rate.
"We are operating on a system called Phoenix that existed before the turn of the century," Shwedo said. He told members Phoenix is written in COBOL, supported by an aging workforce and vulnerable to outages: "When that system goes down ... every one of the 5,300,000 cannot get anything done." Shwedo said modernization has been his single budget ask for several years and estimated a replacement would cost about $100 million.
Shwedo described workforce and equity characteristics of his staff — "87% of my workforce is female; 51% of it is African American" — and said many employees are single parents who rely on DMV wages. He said prior salary increases moved many frontline employees from around $22,000 to about $33,000 but inflation has reduced that buying power, and that the agency experiences about 33% annual turnover (roughly 500 of 1,500 employees).
On Real ID, Shwedo said roughly 60% of state residents have the credential and emphasized federal consequences for noncompliance: after a federal deadline, travelers without Real ID may need a passport to board planes or enter federal facilities. He said the DMV will centralize card issuance in September and that some documents and processing changes will require more time for customers.
Shwedo also talked about operational changes to reduce fraud and increase security, including future mobile driver's licenses and biometric options contingent on modernization. He characterized the DMV's work as identity management and revenue collection — noting the agency collects significant revenue that largely flows to the Department of Transportation — and urged legislators to consider modernization funding to avoid system failures that would cascade to law enforcement and other services.
Members asked about DUIs, SRO funding and other policy issues; Shwedo provided estimates and urged oversight of related state laws. Shwedo said he and his staff are available to answer constituent questions and that the DMV will share information about Real ID requirements and timing with the public.
No formal committee votes followed the presentation.
"We are operating on a system called Phoenix that existed before the turn of the century," Shwedo said. He told members Phoenix is written in COBOL, supported by an aging workforce and vulnerable to outages: "When that system goes down ... every one of the 5,300,000 cannot get anything done." Shwedo said modernization has been his single budget ask for several years and estimated a replacement would cost about $100 million.
Shwedo described workforce and equity characteristics of his staff — "87% of my workforce is female; 51% of it is African American" — and said many employees are single parents who rely on DMV wages. He said prior salary increases moved many frontline employees from around $22,000 to about $33,000 but inflation has reduced that buying power, and that the agency experiences about 33% annual turnover (roughly 500 of 1,500 employees).
On Real ID, Shwedo said roughly 60% of state residents have the credential and emphasized federal consequences for noncompliance: after a federal deadline, travelers without Real ID may need a passport to board planes or enter federal facilities. He said the DMV will centralize card issuance in September and that some documents and processing changes will require more time for customers.
Shwedo also talked about operational changes to reduce fraud and increase security, including future mobile driver's licenses and biometric options contingent on modernization. He characterized the DMV's work as identity management and revenue collection — noting the agency collects significant revenue that largely flows to the Department of Transportation — and urged legislators to consider modernization funding to avoid system failures that would cascade to law enforcement and other services.
Members asked about DUIs, SRO funding and other policy issues; Shwedo provided estimates and urged oversight of related state laws. Shwedo said he and his staff are available to answer constituent questions and that the DMV will share information about Real ID requirements and timing with the public.
No formal committee votes followed the presentation.
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