NCDOT announces layoffs, delays as coronavirus cuts into revenue
The state Department of Transportation says drops in gas and highway taxes will stall most new road projects for the next fiscal year. The agency is also working on plans for furloughs or layoffs in case they're needed.
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DOT is funded by revenue from gas taxes, highway use taxes, and Division of Motor Vehicles fees. But with so many fewer people driving due to the coronavirus pandemic, the agency is facing a $300 million shortfall by the end of June.
In a news release Tuesday, DOT leaders said they're taking immediate steps to reduce expenses, including laying off around 300 temporary and embedded consultants, suspending or decreasing many programs and services and freezing hiring for any positions that don't affect public safety.
According to the release, there are no current plans for furloughs or layoffs of permanent workers, but the agency is preparing for that contingency.
Projects that have already been awarded or are underway will not be affected. About 50 new projects will continue as planned because they're funded with bonds or federal grants.
Abbott said the agency informed state lawmakers of the impending budget shortfall two weeks ago.
Legislators will return to Raleigh next week and could consider a bridge loan for the department.
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