In this report, La Follette students evaluate the economic effects of eliminating Wisconsin’s policy of suspending driver’s licenses for nonpayment of legal financial obligations.
Summary
This cost-benefit analysis assesses the economic effects of eliminating Wisconsin’s policy of suspending driver’s licenses for nonpayment of legal financial obligations. Adults who do not pay their traffic-related forfeitures may have their licenses suspended for up to one year. While this policy is meant to deter nonpayment and promote compliance with state law, it disproportionately affects drivers with low-incomes and contributes to a cycle of financial and employment difficulties. This analysis finds that eliminating this policy and instead using a debt collection program through the Department of Revenue (DOR) would result in an estimated $200.6 million in annual net benefits for Wisconsin residents.
Information
- Course: Cost-Benefit Analysis Public Affairs 881 taught by David Weimer, Fall 2023
- Authors: Mary Baumgartner, Minjung Jun, Qinqin Liu, and Johanna Schmidt
- Client: Legal Action of Wisconsin