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Falling Behind in NC, NC Budget and Tax Center

North Carolina’s transportation system helps form vital social and economic structures by connecting people to services, jobs, and other opportunities across the state and beyond. Although North Carolina has been known as the Good Roads State, its transportation system is under considerable pressure due to aging infrastructure, increasing demand, and declining revenue sources that are failing to keep pace with rising costs to maintain and improve the system.

Just last August, the North Carolina Department of Transportation confirmed that there is a large and growing gap between transportation needs and funding. They released a report estimating that the state is facing 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. Ultimately, legislators control the purse strings as well as revenue options so solving this budget shortfall is largely up to them. Read More

Uncategorized

Just out from the NC Budget and Tax Center:

MEDIA RELEASE: Low-income North Carolinians’ needs must be at forefront of public transit plans
Plans should evaluate where low-income individuals – transit’s most reliable customers – live and work

RALEIGH (December 12, 2012) – The success of new and expanded transit in North Carolina will be largely dependent on how well the transit system retains and reaches its most reliable customers – low-income North Carolinians – according to a new report. Read More

NC Budget and Tax Center, Uncategorized

Do you hear that sound? It could be Charlotte’s plan for the Blue Line Extension coming to a screeching halt as a result of the Senate budget proposal for transportation, which would eliminate the Public Transportation Division’s New Starts & Regional Capital Grant Program and $29 million in state appropriations. New Starts is a grant program that allocates federal transportation resources for mass transit capital projects—such as light rail and bus rapid transit—and requires local and state matching appropriations. The proposal may cause Charlotte to lose out on $534.6 million in federal funding for the Blue Line Extension if state funds are not available to cover the required 25 percent match. Read More

NC Budget and Tax Center, Uncategorized

An efficient, safe, and convenient transportation system is integral to the health of North Carolina’s economy and North Carolinians’ quality of life. The state’s vast transportation system is struggling to serve this need because it faces serious challenges. The system is under considerable pressure due to aging infrastructure, increasing congestion, and strained revenue sources that are failing to keep pace with rising construction and maintenance costs.

Despite these problems, Governor Perdue’s FY2012-13 budget proposal places a cap on North Carolina’s gas tax, which is currently 38.9 cents per gallon and accounts for more than half of state revenues dedicated for transportation projects. The legislature is poised to follow suit. The Budget and Tax Center released a report earlier today on the pitfalls of capping the gas tax. Read More

Uncategorized

There’s been much ado in recent months about North Carolina’s “record high” gas tax levels, but that claim is missing some important historical and economic context.  After adjusting for inflation, North Carolina’s gas tax is actually quite low by historical standards (see chart below).  In fact, it’s only in comparison to a brief period of low gas taxes in the early 1980s that the state’s current gas tax rates appear abnormally high.

 

 

 

 

 

 

 

 

 

 

 

 

 

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