As someone that has done a lot of projects for "the government" in the last 2 decades, it's unfortunately the case that all government departments and projects don't run well and are doomed to fail (funding or not). The nature of the constraints and priorities given to the governmental agencies (like the DMV example above) is one that makes them fail or not do well. It's by design, coupled with all political parties treating government projects as glorified jobs-programs, and you end up getting a downward cycle that both sides feed on.

Then you get misguided attempts at "bringing in the private sector" like allowing DMV functions to be done by private entities, at their premises or through their apps. This is literally the worst of both worlds even if it works and technically isn't really "gutting" the governmental department.