10/20/08-Officials in North Carolina have decided they cannot afford to give roads as much attention as in the past when it comes to repairs and fixes. To help, a statewide study group is looking into ways to generate revenue for road and bridge work.
Transportation Secretary Lyndo Tippett of the North Carolina Department of Transportation has enacted 6 percent spending reductions, The Charlotte Observer reported. The $50 million cut is in reaction to declining tax revenue.
Tippett assured that the cuts have not resulted in delays to any highway construction projects. But he said that will eventually change.
To further help save money, the DOT is continuing a hiring freeze. Eliminating travel and training expenses as well as cancelling new equipment purchases also are intended to help reduce costs.
Blame for the reduction has been directed at declines in revenues from the state’s collection of taxes on fuel and vehicle sales. People are driving less and buying vehicles that are less expensive.
Fuel tax revenues in the state have taken a hit since the Legislature opted to cap the tax in 2006. To make matters worse, the cost of construction materials for roadwork in North Carolina has doubled in the past six years.
The state DOT warns that if tax revenue stays at the current level, the department will be forced to cut $200 million by next summer. Additional shortfalls will prompt deeper cuts.
A study group is in the process of discussing options to raise money for transportation work.
The 21st Century Transportation Committee, a panel of elected and appointed officials created by leaders of the state’s House and Senate to recommend new revenue sources for consideration during the 2009 regular session, meets once each month in Raleigh to discuss funding.
Options on the table include toll roads, an increase in the state fuel tax, and a possible tax on vehicle miles traveled. Other ideas are to give local governments the option of a sales tax increase for transportation needs and plan a major state bond issue for road, bridge and other projects.