Was the $8M or whatever what they were spending on the permit system, or were they using the money to fund other things as well, using the permits as a profit generating system?
IE $20 for a permit, as per law, which costs about $20 to issue, track, and do the mandatory paperwork on is one thing. But if they were charging $100 for a permit that cost $20 to handle, putting the $80 remaining to 'other work', then we have an issue.
Per the articles, it was the latter. Perhaps that money should be replaced with general tax monies, as crime still needs to be solved. But even those who want licenses should realize that a gun license fee that's drastically over what managing the licenses costs amounts to a poll tax - IE 'you are not eligible for self defense unless you earn at least $x'.