North Carolina must reform the way it raises revenue for transportation. The existing funding structures are inadequate for addressing current and future transportation needs across the state. The Governor proposed bonding against future tax revenue to meet these needs while the Senate appears poised to push through changes to the gas tax. The bottom line is that policymakers must ensure adequate dollars are available to have a safe, modern transportation infrastructure that can support workers getting to jobs and business getting goods.
The gas tax is a major revenue source for transportation projects such as repairing bridges, repaving roadways, and building highways. The failure of the current gas tax (and other transportation funding sources) to support these important public services means that backlogs for both maintenance and repairs projects persist. The state Department of Transportation estimates that North Carolina faces a $60 billion shortfall for transportation improvements through 2040, and that the state needs to come up with $32 billion just to keep the status quo.
To address a small part of the gap between transportation needs and resource availability in the long term, Senate leadership pushed a bill through the Senate Finance and Appropriations committees yesterday that would change the structure of the gas tax beginning next month. This proposal is tucked into a larger bill that makes various conformity changes to federal tax law. Read More