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