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Monday, September 8, 2008

NC faces future road budget shortfall
Updated 11/26/2007 05:44 PM
By: Tim Boyum

Road budget shortfall
The state faces a $65 billion dollar shortfall for road construction in the next 25 yeas. Currently the state maintains more miles than any other state except Texas.
RALEIGH -- Counties could do more to help pay the high cost of building roads in the future. The state faces a $65 billion shortfall for road construction in the next 25 yeas. Currently the state maintains more miles than any other state except Texas.


There's a growing desire among state officials to have counties pitch in and help pay for the paving. The cost of asphalt continues to skyrocket, gas taxes revenue continues to drop, and highway travel has jumped 61 percent in the last 15 years.


By the end of next year, a Blue Ribbon Transportation Commission must recommend how the state can build roads faster and cheaper.


"This committee is absolutely critical to the future of transportation for this state in my opinion," said Commission member Sen. Richard Stevens, R-Wake. "It's an issue that we did not face in the last General Assembly and one we must face."


One partial solution that has surfaced and this group will study -- among many other options -- is having counties pitch in money. Some county leaders though say that's not necessary.


"Counties were taken out of the road funding business in 1931," explained Paul Meyer, County Commissioners Association. "We've had 76 years go by [and] the state has developed quite well, quite regularly."


County commissioners were given the option last year to offer the state money to get roads built quicker in their counties, but with school construction needs, few counties will take up the state's offer.


While funding is falling flat in North Carolina, money that normally comes in from the federal government for state roads is also declining.


"I think more and more the opportunities are going to be for states and local governments to come up with new and innovative solutions," said U.S. Transportation Secretary Mary Peters. "We in the federal government want to help them do that, but unfortunately that fund in the federal government is not growing to the extent that we can provide more money at least in the near-term future."


If the state forces counties to pay, Meyer says it will likely mean higher taxes.


"I'm assuming that counties would have to raise money out of property taxes unless the citizens authorized the county commissioners to levy a new sales tax or a new land transfer tax," Meyer said.


It's an idea, however the land transfer tax failed miserably at the polls in November, a clear sign from voters they do not want new taxes.


The Blue Ribbon Transportation Commission will meet several times over the next six months. A preliminary report is due by May with a final report by the end of 2008.







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