To fill the potholes in crumbling budgets, some states are continuing to look for ways to cut expenses.

For at least 16 states, removing paper from the lien implementation process is one way that departments of motor vehicles might potentially save operational costs. One solution gaining steam is an electronic lien and titling system, which digitizes the automotive title process. Instead of a state's DMV mailing a paper title to a credit union or other financial institution to hold in their vault, an electronic lien or notice is stored.

ELT continues to expand across the United States and 2011 could see more states setting up the digital networks, said Larry Highbloom, president of VINtek, a Philadelphia-based provider of automotive collateral management services and direct auto finance solutions for banks, credit unions and other auto finance institutions.