Remarks for Secretary Tippett
Fayetteville Kiwanis Club Luncheon
Friday, March 24, 2006 at 12:30 p.m.
Fayetteville
Introduction
Good morning.
Rep. Dickson, thank you for that kind introduction.
I always enjoy coming home to Fayetteville, especially when I get to spend time with talented community leaders like you.
I would like to thank you for your continued service and the good work you do for Fayetteville.
I appreciate this opportunity to share the North Carolina Department of Transportation's agenda for 2006, as well as update you on several projects here in Fayetteville.
First though, I would like to recognize Terry Gibson, Division Engineer for Highway Division Six, which includes Cumberland County.
Terry continues to do an outstanding job carrying out the department's mission in this region of the state.
I know that this club is deeply committed to improving this community and providing its citizens with a high quality of life.
NCDOT shares this commitment, and we have an aggressive agenda in order to fulfill the department's mission to provide North Carolinians with a safe, modern and integrated transportation system that expands opportunities for Fayetteville and the other communities across our state.
The Relationship Between Growth and Funding
Each of you should have a copy of this agenda at your seats.
It is no secret that Fayetteville, along with the rest of North Carolina, is becoming an increasingly popular place to live and work.
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 Formula
To ensure that our limited transportation funding resources are distributed equitably throughout the state, we base funding on the equity formula.
This formula was part of the Highway Trust Fund Law enacted by the General Assembly in 1989 and requires Transportation Improvement Program funds be distributed equitably among seven regions of the state over a seven-year period.
The distribution is based 50 percent on the population of a region, 25 percent on the number of miles of intrastate highways left to complete in a region and the remaining 25 percent is distributed equally among the regions for the TIP.
Urban Loop funds, Congestion Mitigation and Air Quality funds and Competitive/ Discretionary Federal Grant funds are exempt from the formula.
Gas Tax
A major source of the department's revenue comes from the state's gas tax.
This tax has been a part of motorist's lives in North Carolina since 1921. The gas tax has been the center of much discussion recently, and I want to take a minute to explain how it works.
The gas tax is based on a formula that includes both a fixed and variable component.
The variable component was added by the state legislature to help gas tax revenues keep pace with inflation, and is equal to 7 percent of the wholesale price of gasoline from the previous six months.
Based on this, the current variable rate was determined by gasoline prices from July 1 to December 31 of last year.
As you know, higher summer gas prices and several hurricanes caused gas prices to rise dramatically during this time and the result was a 2.8 cents increase in the gas tax as of January 1. Our current tax rate is 29.1 cents per gallon.
That increase will only affect the average consumer by an average of $15 over the course of the year, but it would severely impact our budget if the revenues were lost.
One of my top priorities has been and continues to be implementing new funding solutions to meet more of our state's needs.
Seeking Innovative Funding for Highway Projects
In recent years, these measures have included Senate Bill 1005 and N.C Moving Ahead!, both programs aimed at preserving and modernizing the state's highway infrastructure.
Together, these two programs have resulted in more than $1 billion in improvements for North Carolina's highway system including several major projects here in Fayetteville.
In 2005, the department resurfaced Owen Drive from U.S. 301 to the All-American Freeway and widened Boone Trail from Owen Drive to Cumberland Road using N.C. Moving Ahead! funds.
The department also anticipates awarding two additional contracts this spring through N.C. Moving Ahead!.
One contract will be for the construction of a left turn lane and traffic signal on N.C. 210 at Fayetteville State University, and the other to replace an aging bridge over an unnamed creek along Rim Road.
Another way we are looking at using innovative funding to meet our needs is through the work of the N.C. Turnpike Authority.
In addition to my role as Secretary of Transportation, I also serve as the chair of the authority, which the General Assembly formed in 2002.
Last year, the authority's powers were expanded, allowing us to design and construct up to nine toll facilities across the state.
Toll funding is one of our most promising solutions for the future, allowing us to complete projects much sooner than by traditional funding methods.
Also, thanks to legislation passed last fall, the department is moving forward with a new funding tool known as Grant Anticipation Revenue Vehicles, or GARVEE bonds.
These bonds allow us to borrow against future federal funding, accelerating our transportation dollars to complete projects sooner and reduce inflation-related costs.
We have been approved to issue $950 million in GARVEE bonds and are currently working to determine candidate projects.
Seeking Expanded Use of Public-Private Partnerships
The department is also looking at ways to partner with private industry to give further options for constructing and maintaining mutually beneficial highway facilities.
We are currently pursuing legislation that would expand our ability to form such partnerships.
As Fayetteville leaders, I urge you to help this community think "outside the box" about ways they can contribute to transportation improvements that will attract new business to our state.
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.
The I-85/Ruin Creek Road interchange, the U.S. 64 Knightdale Bypass and the widening of both I-85 and I-77 in Charlotte were the first design-build projects to be completed-each about one year sooner using this method.
Currently, the department is using this method 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.
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 Public Transportation
While highway construction and maintenance is certainly important, the department also places a high value on other forms of transportation, including rail and public transportation.
Last summer, NCDOT completed a study to determine the need for intercity passenger rail serving Southeastern North Carolina, based on two potential routes: a route connecting Raleigh, Fayetteville, Pembroke and Wilmington and a route connecting Raleigh, Goldsboro and Wilmington.
The report concluded that both routes were needed, based on the U.S. Department of Defense's requirement for adequate rail connections between inland military installations such as Fort Bragg and the state's ports in Wilmington and Morehead City, and the planned port in Southport.
To this end, Congress authorized funding to improve the connection between Fort Bragg, Wilmington and Southport by improving rail connections in Fayetteville, and by adding a new connector at Pembroke.
The department has just begun the first environmental and preliminary engineering studies on the corridor. Once these studies are complete, they will enable the department to establish an exact timeline for construction on the project.
Recently, the department completed upgrading Fayetteville's train station, including renovations to the platform for increased passenger accessibility, an expansion of the waiting area and the addition of a new schedule board.
We have also worked with the Fayetteville Area System of Transit, or FAST, to assist them with reestablishing service to Hope Mills, which will begin in early April.
The return of this bus route will provide Hope Mills residents greater access to employment.
Additionally, NCDOT is working closely with both city and county governments to explore the possibility of adopting a countywide transit system, which would significantly expand transit opportunities for Cumberland County citizens.
Improving Highway Safety
Day in and day out, the department is also working to improve highway safety throughout the state.
This past February, we awarded contracts for the installation of rumble strips along sections of I-95 through Cumberland County and along I-95 Business in Fayetteville.
These strips of grooved pavement alert motorists when they are leaving the travel lanes along highways and are proven to reduce the number of run-off-road type of crashes.
Last year, we extended the eastbound turn lane along N.C. 24 at Maxwell Road and widened Rosehill Road from Shaw Mill Road to Huff Street in an effort to make Fayetteville's major routes safer.
In January, we also installed a solar-powered flasher on the stop sign on Wade Stedman Road at the intersection with U.S. 13 to improve the intersection's visibility.
The use of solar-powered flashers not only reduces long-term electricity costs, but is also one example of the ways we are working to incorporate environmentally friendly design into our projects.
Update on Fort Bragg Projects
Fayetteville poses an unique challenge for the department due to the presence of Fort Bragg.
With additional personnel heading to Fayetteville, Fort Bragg's national profile is certain to rise, as is the city's economy.
I am pleased that the federal government recognized the importance of this first-rate military base to our economy and state.
Recognizing Fort Bragg's importance to Fayetteville and North Carolina, NCDOT has planned several projects to improve safety, traffic flow and access to the base.
We are currently working to extend Owen Drive from I-95 Business to N.C. 87.
This $12 million investment will provide faster, more convenient access to Fort Bragg and improve traffic flow through Fayetteville.
This month, we also awarded a $1.5 million contract to construct a raised median island along Bragg Boulevard and resurface the highway from N.C. 210 to Manchester Road.
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 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 will be 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, between I-95 and Ramsey Street.
This new highway has already become a vital link for residents in northern Fayetteville and Cumberland County, dramatically reducing travel time from northern Fayetteville to I-95 and providing the county with a valuable northern crossing of the Cape Fear River.
It has also reduced travel time from I-95 to Fort Bragg.
In 2008, the department plans to begin construction on the next three phases of the loop, which, when finished, will extend from Ramsey Street to the All-American Freeway.
This $220 million investment will not only give Fort Bragg its first direct connection to an interstate, but also improve congestion throughout the city, giving motorists a high-speed connection across town.
Over the past few weeks, the department has held a series of public hearings across the city concerning this project.
I understand that the project has been largely well received by the citizens of Fayetteville and many are looking forward to the completion of this important highway.
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 Fayetteville and Cumberland County.
As leaders, we share a common desire to better our communities and give our citizens new opportunities for success.
I look forward to partnering with you as we continue to improve Fayetteville.
Thank you again for inviting me here today and for your work to keep Fayetteville a place that people choose to call home.