State experts predict a worsening outlook on transportation projects over the next decade, with less projects likely to receive funding. Analysts with the
N.C. Department of Transportation (NCDOT) provided the update Monday, explaining that a reduction in anticipated revenues and an increase in costs related to utility relocation and right-of-way acquisition meant a cutback in the number of projects that would likely proceed.
Local government staff working with NCDOT have witnessed this recent and unexpected growth in NCDOT’s estimated costs for both large and small transportation projects in the planning and prioritization process. This new problem adds to the $2 billion shortfall NCDOT has experienced from costs associated with natural disasters and expensive
MAP Act legal settlements, as well as still unknown impacts of COVID-19 on revenue. Just this week,
a special workgroup of state, local and federal transportation experts that helps with NCDOT’s
Strategic Investment Program began reviewing the impacts of this “perfect storm.” There is no doubt that the increasingly dire situation will require adjustments to transportation project plans all across the state, and should include even closer collaboration with local governments (including
MPO and
RPO staff) to address the challenges facing transportation.
State legislators also heard more Monday about one important front in this “perfect storm” facing transportation: the longer-term declining state transportation revenue picture. This information came from co-chairs of the N.C. FIRST Commission, including former Raleigh Mayor Nancy McFarlane. The Commission has met for nearly two years and
explored numerous alternate transportation revenue sources. The co-chairs explained the Commission’s work to
a legislative committee dedicated to transportation funding, telling legislators to expect recommendations early next year. Those recommendations could include taxing new services such as ride-sharing, micromobility, or package delivery companies, or raising existing tax rates, they said. In response, legislators discussed the merits of other less traditional funding sources, such as a tax based on vehicle miles traveled. View the full Commission presentation
here and see all members of the Commission
here, including Banner Elk Mayor Brenda Lyerly and Charlotte Council Member Julie Eiselt.
