Remarks for Secretary Tippett
Cumberland County Business Council Discussion
Thursday, May 11, 2006 at noon.
Raleigh
Introduction
Good afternoon and thank you for that kind introduction.
I am pleased to be here and always enjoy the opportunity to speak with citizens interested in state government and transportation, especially those concerning my home county.
I'm sure you have many questions for us, so I'll be brief.
Like you, NCDOT is committed to improving the quality of life for North Carolinians.
We have an aggressive agenda in order to fulfill the department's mission to provide our citizens with a safe, modern and integrated transportation system that expands opportunities for Cumberland County and the other communities across our state.
Transportation Funding
Each of you should have a copy of this agenda at your seats.
The state's transportation needs far outweigh available funding, limiting our ability to meet the state's mobility needs.
You have probably heard that our latest financial forecast is not good news.
Once again, we are facing some difficult, challenging times and will have to make some tough decisions. We are having to respond to economic forces beyond our control.
Soaring gasoline prices, higher steel, concrete and asphalt costs, plus declining revenues are straining our resources even more. As of the middle of last week, we were facing a $920 million shortfall over the next three years.
The bottom line is that there is not enough money to go around, and we need additional funding options to meet our mobility needs and sustain the state's vibrant and growing economy.
Compounding the problem are major oil companies out there making record profits, while consumers are getting nailed at the pump.
These steep gasoline prices are hurting our economies at the local, state and national levels.
The federal government has been cutting back on its allocations to state governments due to lack of available funds. We are looking at a $720 million reduction in federal allocations over the next three years alone.
Motor vehicle sales and fuel consumption are also dropping. This directly affects our revenue collections; most principally the Highway Trust Fund.
When you add double-digit inflation into the mix, 14 percent per year, you're looking at a major hit for North Carolina.
Now, keep in mind that North Carolina is already facing a conservatively estimated $16 billion gap between transportation needs and funding over the next 10 years as identified in the Statewide Long-Range Transportation Plan in 2004. This number is likely to be considerably larger when updated figures are available later this year.
The Governor's recently announced budget proposal to provide $218 million to help offset some of this reduced revenue was certainly welcome news.
We are now working to determine the best course of action to help us meet our needs. And like we did in 2005, we may have to delay some highway projects.
As an agency, we continue to look for innovative approaches to project delivery and improve on traditional methods.
But, there are simply no easy answers to our funding situation. That's why I believe citizen input is so important. As I travel throughout the state, I encourage citizens to share ideas on how to improve our roadways.
Over the many years I have been involved with NCDOT as a member of the Board of Transportation and as secretary, one thing I've learned for certain is that the success of any endeavor is directly proportional to the number of people involved.
And I know that together, we can come up with bold, innovative solutions to keep North Carolina moving forward.
Update on Fort Bragg Projects
As we move forward, I know you are most interested in projects affecting Fayetteville. Most of our major area projects relate to either Fort Bragg or the Fayetteville Outer Loop.
With additional personnel heading to Fayetteville, Fort Bragg's national profile is certain to rise, as is the city's economy. NCDOT understands the importance of Fort Bragg to North Carolina and we are working closely with the base on several high-profile projects that will improve safety, traffic flow and access.
We are currently working to extend Owen Drive from I-95 Business to N.C. 87. This $12 million investment will not only provide faster, more convenient access to Fort Bragg but also improve traffic flow through Fayetteville.
In addition, the department is currently working toward three major projects that primarily benefit motorists traveling near Fort Bragg, but will also improve traffic flow throughout the city.
First, an $18 million project is scheduled to begin in 2009 that will widen N.C. 210 to six lanes from N.C. 24/87/210 to the planned I-295 interchange. And in 2010, we have scheduled a $9 million project to widen N.C. 24/87 to six lanes from the U.S. 401 Bypass to north of Sante Fe Road.
The Fayetteville Outer Loop (I-295)
However, the most visible change to Fayetteville's transportation landscape is the continued construction of the Fayetteville Outer Loop, or I-295.
In July of last year, I had the privilege of officially opening the first completed section of this highway, which has already become a vital link for residents in northern Fayetteville and Cumberland County, dramatically reducing travel time to I-95 and providing the county with a valuable northern crossing of the Cape Fear River.
Just as you, I also look forward to the construction of the next phases in the next few years and to the completion of this entire loop.
Conclusion
The projects that I've highlighted for you are just a few of the many ways that we are working to improve transportation and enhance the quality of life in Fayetteville and Cumberland County.
I am proud to partner with you on this endeavor.
Thank you again for inviting me here today and for your work to keep Cumberland County a place that people choose to call home.
I am also looking forward to your questions in a few moments.