County Clerk David J. Swarts is billing the state Department of Motor Vehicles for $102,435, payable immediately.
The state agreed April 4 that the $102,435 would be paid but so far has not done so, Swarts said.
"If this amount is not received by my office within 10 business days from the date of this letter, I will have no alternative but to consider the state Department of Motor Vehicles in breach of this contract and take appropriate action," Swarts said.
The grace period outlined by Swarts will expire Nov. 8.
Motor Vehicles Commissioner Richard E. Jackson Jr. signed an agreement with Swarts and Erie County to guarantee the county would continue to accept license surrenders, enroll applicants in anti-drinking programs, collect civil fines, and issue conditional and restricted licenses.
Jackson agreed the state would pay $153,565 to run two programs and would seek another $102,435 in the then-pending state budget. So far, only the $153,565 is paid.
Swarts said "appropriate action" could include going to court or stopping services the state has failed to fund.