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Lindsborg Hospital

Kansas Withholding Funds for Vehicle System

Associated Press - June 10, 2013 11:16 am

Kansas will be holding back its final payment to a Minnesota company handling the state’s new motor vehicle system until it is fully active and its problems are resolved.

The Topeka Capital-Journal reports on Monday that the state previously said it was withholding the final 10 percent of its payment on the $25 million contract until all the known problems with the system were rectified.

Department of Revenue spokeswoman Jeannine Koranda says the final $2 million payment is being held until the system is free of issues.

Kansas was supposed to launch the new system for residents to register their vehicles in October 2012 but a series of issues caused a delays. The delays led to long lines and sharply increased overtime in many license offices.

City of Salina