Remarks for Secretary Tippett
Greensboro Chamber of Commerce
General Assembly Auditorium
June 7, 2006 at 2 p.m.
Introduction
Good afternoon and thank you for that introduction, Bob.
I was pleased to hear that you are interested in learning more about transportation issues in North Carolina because now, more than ever, these issues are critical to ensuring the continued success of our state.
I appreciate this opportunity to share the North Carolina Department of Transportation's agenda for 2006, as well as update you on several projects in the Greensboro area.
Transportation infrastructure is key to economic development and that is truly evident in Greensboro.
Your key location along I-85 and I-40 and the future intersection of I-73 and I-74 make Greensboro an ideal place for businesses to locate.
The Relationship Between Growth and Funding
And it is no secret that Greensboro, along with the rest of North Carolina, is becoming an increasingly popular place to live and do business.
While this growth provides numerous opportunities, it is also placing an increasing demand on our transportation system.
To put the situation in perspective:
· North Carolina's population grew from 5 million in 1970 to 8.5 million in 2004, and is expected to grow by 4 million more people in the next 25 years.
· Vehicle miles traveled more than tripled from 30 billion in 1970 to 94 billion in 2004, and are expected to increase 50 percent more by 2020.
· Truck freight hauled in North Carolina is projected to increase to 808 million tons by 2020, a 190-percent increase since 1998.
Funding
Meeting our transportation needs continues to be a major challenge.
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. We are facing an additional $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.
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 we are already facing a conservative $14 billion gap between transportation needs and funding over the next six years as identified in the Statewide Long-Range Transportation Plan in 2004. When double-digit inflation is factored in, this number will be considerably larger when updated figures are available later this year.
The Governor's 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; however, like we did in 2005, we will have to delay some highway projects.
As an agency, we continue to look for innovative approaches to project delivery and improve on traditional methods.
We have had good success with design-build method for example. In fact, the first several design-build projects which include the U.S. 64 Knightdale Bypass and the widening of both I-77 and I-85 were each completed about one year sooner than by traditional methods.
Because of the great success of these projects we are also looking at the possibility of constructing the Eastern Loop in Greensboro as a design-build project as well.
A number of innovative options are also available to supplement transportation funding and meet more of our needs over the near and long term.
Funding Options
Through House Bill 749 the department is seeking to expand our authority to enter contracts with private sector partners to build or improve highways. Public-private partnerships help encourage private investment and innovation in transportation.
As you all know we've also begun looking seriously at developing toll roads in some of our most congested areas.
In addition to my role as Secretary of Transportation, I also serve as the chair of the North Carolina Turnpike Authority, which the General Assembly created in 2002.
N.C. Turnpike Authority
Toll funding is one of our most promising solutions for the future, allowing us to complete projects much sooner than by traditional funding methods.
In the past few months, the N.C. Turnpike Authority has been carefully examining six projects and evaluating their potential for development as the state's first toll facilities.
For each project, a detailed financial feasibility study is being conducted to estimate future traffic and gauge potential toll revenues.
We heard the results from the first study earlier this year. And it appears to have some good potential. We expect the study results of the I-540 part of the Western Wake project any day now and will have feedback on the other projects in the next month or so.
Community and local leaders across the state have asked us to consider tolling certain routes in their respective areas as they see toll funding as a promising solution to get critical roads on the ground and open to traffic faster than we could using traditional funding methods.
In the search to fund new highway construction, many states have turned to toll roads as a viable alternative.
Currently, there are more than 5,000 miles of toll roads in 35 states, including South Carolina, Virginia, Georgia and Maryland. In fact, every state along the East Coast from Florida to Maine has tolls with the exception of us.
But toll roads are only one solution.
We must look at a menu of other options for funding our critical transportation needs and it is clear that these options must be expanded down to the local level. This has already been used to a limited extent in Mecklenburg County and the Triangle to help pay for regional light rail systems.
This would provide local governments a mechanism to enhance transportation funding and better meet their needs, which can no longer be met by the state alone.
Transportation infrastructure and the ability to move goods efficiently are critical to the well being of our state.
It is said that "necessity is the mother of invention" and this is true of the challenge we are facing.
We are no doubt at a crossroads with our transportation system and in order to meet our ever-increasing transportation needs, we cannot afford to be content with the status quo.
We must be inventive and we must be willing to take bold steps if we want to sustain the state's vibrant and growing economy.
Land-Use Planning
In addition to securing new, innovative ways of funding highway projects, we need your help encouraging communities to make wise land-use planning decisions.
NCDOT's first priority in regards to land-use planning is preserving the mobility of a community and ensuring that citizens can easily and efficiently move from one place to another-both in the short- and long-term.
We have been working closely with the Department of Commerce and the Department of Environment and Natural Resources to devise a strategy for the future that will ensure North Carolina's long-term prosperity.
A prime example of how the three agencies are working together is through the Strategic Highway Corridors policy, which identifies and prioritizes highways that play a critical role in regional or statewide mobility.
We have also established another partnership aimed at planning transportation improvements hand-in-hand with economic development and environmental protection.
Known as the Interagency Leadership Team, this partnership brings together state and federal resource agencies to develop an interagency plan for North Carolina that balances the mobility, natural and cultural resource protection, community values, and economic vitality of the state.
One of the team's chief goals is to involve local, state and federal agencies in integrating land-use, transportation and economic development planning.
We are currently working to identify strategies to accomplish this goal and bring together partners on each level to think about and plan for the future.
Improved Project Delivery and Oversight
Along with this, we are working to streamline the process of delivering transportation projects.
One highly successful method has been design-build, which allows a project's design and construction to be completed under one contract, reducing project completion time by as much as several years.
The program also helps keep inflation costs down by completing projects in a shorter time frame.
Currently, the department is using design-build to construct the U.S. 17 Windsor Bypass in Bertie County, the U.S. 17 Washington Bypass in Beaufort County and the widening of I-40 in Asheville.
We are also looking at the possibility of using this method on the Greensboro Eastern Loop.
Another way we are working to improve project delivery is through an important partnership we have in place with the Department of Environment and Natural Resources, known as the Ecosystem Enhancement Program, or EEP.
This partnership helps streamline the environmental permitting process and reduces delivery time for road projects by allowing transportation mitigation to be completed years in advance of construction.
To date, the program has helped preserve more than 35,000 acres across the state.
Increased Investment in Rail Infrastructure and Expanded Alternative Modes of Transportation
While people tend to think of highways when they hear the word, "transportation," a multi-modal transportation system that promotes seamless and efficient travel is key to success in today's marketplace.
With this in mind, NCDOT invested $1.85 million last year to fund 12 rail industrial access projects across the state.
Once completed, the companies affected by these improvements will ship a combined 17,700 carloads annually and create or preserve a total of 640 jobs.
Along with these improvements, we've also expanded North Carolina's vanpool program, which targets North Carolina residents earning less than 200 percent of the poverty level.
The program transports people to work who would otherwise be unemployed or have to use a large portion of their income for a commute trip. As many as 30 rural vanpools operated across the state in 2005.
Beyond buses and vans, we've worked to encourage bicycle and pedestrian activity by completing $22 million in bicycle and pedestrian improvements in 2005 alone.
An integrated and balanced transportation system improves mobility and helps maintain quality of life to ensure North Carolina's continued prosperity.
Highway Safety
Day in and day out, the department is also working to improve highway safety throughout the state.
In the past 10 years, more than 15,000 people have lost their lives on North Carolina highways due to traffic crashes.
To address this problem and better coordinate the many safety initiatives both within and outside the department, NCDOT formed the North Carolina Executive Committee for Highway Safety in April 2003.
This group comprises transportation safety experts from across the state and is charged with developing and implementing short- and long-term sustainable strategies to reduce the number of fatalities and injuries on our state's highways.
The committee is providing new and innovative ways to address highway safety through its many working groups.
Key issues include: increasing safety belt usage, keeping drivers alert, speed, lane departure and ensuring drivers are fully licensed.
The good news is that we have seen a slight decline in fatalities the past couple of years, but we still have a lot of work to do.
As the committee strives to not only meet, but also exceed, the adopted national goal of one fatality per 100 million vehicle miles traveled by the year 2008, they will continue to need support of community leaders such as you.
The keeping drivers alert working group is currently developing a campaign aimed at teen drivers about the dangers of distracted driving.
If we educate teens about good driving habits before they get behind the wheel, the chance of our message staying with them greatly increases.
Update on Greensboro Projects
Before I close, I want to update you on some projects in the Greensboro area.
As many of you know the Western Urban Loop from the I-85 Bypass to the I-40 interchange is currently under construction and we expect it to be completed by July 2007.
The section of the Western Urban Loop from Bryan Boulevard to the I-40 interchange is also currently under construction with completion set for December 2007.
Construction of the Eastern Urban Loop has been delayed but as I mentioned earlier we are looking at the possibility of utilizing the design-build process to help get this project under way.
If the department uses this process, it would allow construction to begin as soon as 2009 versus using the conventional method and not beginning construction until 2011.
I am pleased to let you know that later this month construction will be complete on the section of Guilford College Road from High Point Road to Mackay Road and the section from Mackay Road to Hilltop Road is scheduled to be complete in December.
Right-of-way acquisition is also under way for the U.S. 311 Bypass/Future I-74 from U.S. 29/70 to I-85 and construction is scheduled to begin this fall.
At this time, construction for the section of I-73 from N.C. 68 in Rockingham County to the Haw River is scheduled to begin in 2009.
With Greensboro being a central transportation hub for North Carolina, we are continually looking for ways to get these important projects on the fast track so this area will be able to continue providing top-notch transportation services that assist in the economic development of our state.
Conclusion
The projects and programs that I've highlighted for you this afternoon are just a few of the many ways that we are working to improve transportation and enhance the quality of life in Greensboro and across the state.
As leaders, we share a common desire to better our communities and give our citizens new opportunities for success.