Illinois secretary of state wants to sell ads on vehicle registration notices to bring in money

Amid a long-running budget battle, Illinois Secretary of State Jesse White is asking lawmakers to give him a tool to make ends meet: allowing advertising on vehicle registration reminders that are mailed out to millions of homes each year.The idea is to avoid...

Illinois secretary of state wants to sell ads on vehicle registration notices to bring in money

Amid a long-running budget battle, Illinois Secretary of State Jesse White is asking lawmakers to give him a tool to make ends meet: allowing advertising on vehicle registration reminders that are mailed out to millions of homes each year.

The idea is to avoid a repeat of October 2015, when White's office temporarily stopped mailing the annual renewal notices, citing a lack of funding because of the impasse. During the 10 months the mailers didn't go out, the number of people fined for failing to register their vehicles in time skyrocketed, leaving drivers on the hook for millions of dollars in late fees.

Lawmakers eventually approved some money that allowed the secretary of state to resume the mailings, but that measure expired Jan. 1. White spokesman Dave Druker said the notices will continue for the time being but said money eventually will be necessary to keep them going.

The office has tried to push email reminders to cut down on costs and prevent fines, but just 2.5 million drivers have signed up. Around 9.6 million renewal notices are mailed each year. It costs roughly $450,000 a month in postage to send those reminders. Druker said the hope is much of that cost could be covered if lawmakers approved legislation that would allow companies to purchase advertising space on the notices.

The ads could feature a range of businesses, including attorneys and restaurants. Companies regulated by the secretary of state, such as vehicle dealerships and driving schools, would be banned from participating. Also prohibited would be those that make or sell alcohol, pharmaceuticals or medical marijuana as well as elected officials, candidates and campaign committees. Druker said advertising chosen by the secretary of state's office would not equal an endorsement of a product but strictly be a way to bring in more money.

It's not the first time the office has explored selling advertising. In 2011, lawmakers asked White to study the possibility of allowing corporations to sponsor license plates as a way to generate more money for the state. That idea ultimately was squashed after it was determined that the program wouldn't bring in substantial profits.

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Druker said the office hopes the outcome will be different this time around, noting the large audience that would receive the ads. "I think we have to see what the market is going to be," Druker said.

State and local governments in recent years have looked to the private sector to help bring in money for day-to-day operations, to varying degrees of success.

In 2010, Illinois picked a private firm to run the lottery, hoping an outside company could help boost profits to pay for schools, roads and bridges. But the arrangement proved disappointing after profit targets repeatedly were missed, and the state has since cut ties with Northstar Lottery Services and is searching for a new manager.

In Chicago, Mayor Rahm Emanuel has pushed advertising to prop up the city's budget in fits and starts. An idea to sell ads on water bills never got off the ground, while efforts to sell space on iconic downtown bridge houses over the river were short-lived. The city authorized dozens of digital billboards run by a private company to bring in extra cash.

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A handful of states outside of Illinois already offer similar ad sales. In Virginia, companies can advertise at welcome centers and rest stops. In Washington, the department of transportation allows advertising on certain webpages. An agency spokesman there said the digital advertising program started in 2011 and had collected $320,000 as of June.

The practice isn't that common and proposals don't often translate into action, said Arturo Perez, an analyst with the National Conference of State Legislatures.

Christopher Mooney, director of the Institute of Government and Public Affairs at the University of Illinois, doesn't see a downside to the secretary of state's efforts, noting that private advertising would allow the office to make money without additional taxes. "The harm to the consumer is negligible," he said.

Indeed, Druker said the secretary of state's office may continue the advertising program if and when a budget is passed to save taxpayers money. For now, the office is simply trying to get by until lawmakers and the governor reach a budget deal.

"The fact of the matter is that we have to look for alternatives if we're going to maintain that service," he said.

hbemiller@chicagotribune.com

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