Raleigh, N.C. — Lawmakers are looking at various options to address the growing shortfall in road-building funds in the state Department of Transportation.
The state gas tax generates much of the money for DOT, but with more fuel-efficient cars and an increasing number of hybrids and electric vehicles, the gas tax isn't getting the job done.
The gas tax, which is capped at 37.5 cents per gallon through June, generates the bulk of the state's $2 billion Highway Fund for road construction and maintenance and part of the $1 billion Highway Trust Fund for road improvements and loop highways.
"What we'll be doing (is) looking at other revenue streams, and there's a lot of them, Senate Transportation Committee Co-Chairman Bill Rabon said Wednesday.
The DOT faces a $60 billion gap between road needs and revenue over the next 30 years, and lawmakers said they want to find ways to fill at least a portion of that budget hole.
Some states are looking at user fees, such as one that taxes the number of miles driven instead of the amount of gas purchased.
Sen. Neal Hunt, R-Wake, said North Carolina might need to copy Virginia's approach.
"A lot of people don't like what Virginia has done. They increased car registration fees (and) added a sales tax, an overall sales tax devoted to transportation," Hunt.
Hunt, who chairs the Senate Appropriations Committee, said he also believes it's time to reorganize how transportation funds are spent across the state.
"Direct more money toward urban congested areas," he said. "We'll be looking at distribution formulas. Hopefully, we can get more money where it's really needed."
Gov. Pat McCrory campaigned last fall on changing the state's priorities as to how and where limited transportation dollars are spent. He hasn't called for any shifts since taking office.
Rabon, R-Brunswick, said he is in no hurry to change the highway funding formula.
"We don't pick winners and losers. We try to treat everyone fairly," he said.
Union County resident Jackie Delapaz, who was in Raleigh Wednesday for a school field trip, said she believes it's time for a change in funding North Carolina road construction.
"I think the rural roads are pretty good. The cities, they need the loops and the bigger roads to handle the congestion," said Delapaz, who works in Mecklenburg County.




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February 20, 2013 8:29 p.m.
February 20, 2013 10:51 p.m.
We have spent a fortune on needless 4 lane roads to nowhere down east while the southern half of the I-540 loop had to be a toll road to get it built in less than 25 years.
I-295 in Fayetteville receives more than it's fair share of funding compared to Charlotte, Raleigh, and Greensboro.
February 20, 2013 11:44 p.m.
February 21, 2013 1:44 a.m.
February 21, 2013 1:51 a.m.
February 21, 2013 5:45 a.m.
According to the tax foundation, NC ranks number 6 for high gas taxes. Only NY, California, Hawaii, Minnesota & Michigan payer higher gas taxes than NC.
Source: http://taxfoundation.org/article/state-gasoline-tax-rates-january-1-2012
Here is DOT's plan for spending the funds:
1 Focus investment on multimodal facilities of Statewide importance
2 Work with regional planning partners to increase flexibility and responsiveness
3 Reward entities that better integrate land use and transportation planning
4 Expedite project development and delivery through improved efficiency and flexibility
5 Strengthen planning processes to recognize North Carolina’s diversity
6 Maximize economic opportunity and job creation via improved freight initiatives
Source: http://www.ncdot.gov/download/performance/NCDOT_2040TransportationPlan.pdf
Oh, give me a break.
February 21, 2013 5:49 a.m.
No, Mr Hunt, we do not need to emulate VA.
February 21, 2013 6:56 a.m.
I suggest that the NCDOT quit building any more freeways in the Triangle area, which we know are being built not to move traffic but to spur development (and the tax base). We've got a loop around a loop in Wake County, which is supposedly going to be paid for by tolls, although that might take a thousand years.
We are fast approaching the point that we can't levy any more taxes because people are stretched to the limit. It's almost as if our state legislators hope gas prices continue to climb, which will limit gas consumption, which will increase pressure for them to levy even more taxes.
February 21, 2013 9:43 a.m.
February 21, 2013 9:44 a.m.