Remarks for Secretary Lyndo Tippett
N.C. League of Municipalities Board of Directors Meeting
Wednesday, May 11, 2005 at 2:30 p.m.
Raleigh

Thank you, Ellis, for that introduction.

I am especially pleased to be here today because like you, I have the interest of North Carolina's communities at heart.

I have long recognized that good transportation is essential for every municipality-from our large metropolitan regions to our small rural towns.

A strong relationship exists between transportation and economic prosperity, and transportation projects play a critical role in the future economic growth of communities throughout the state.

For example, the relocation of Dell to Winston-Salem was due in large part to the presence of a well-connected transportation infrastructure.

The value of high-quality transportation cannot be underestimated.

Given this, I want you to know that I take the mission of our department to expand opportunities for all areas of the state through a safe, modern and integrated transportation system very seriously.

I also want you to know just how much I appreciate your work on behalf of communities throughout North Carolina.

You certainly make my job easier by keeping me informed of the issues facing local communities across the state, and your organization is an invaluable asset to the department.

You will be pleased to know that, with the support of organizations like yours, NCDOT has made great progress for transportation over the past four years-from improving project delivery to better protecting our environment.

It is a great honor to remain in Governor Easley's Cabinet as Transportation Secretary and carry out an agenda that is in support of his vision for One North Carolina-where every community matters and every citizen counts.

This vision encompasses both the mission of NCDOT and the mission of the League of Municipalities, and I look forward to working together in the future to continue to make it a reality.

Challenge Overview
 I know you are very interested in hearing about the department's current funding situation.

Based on recommendations from a 2001 cash management study commissioned by the General Assembly, we took advantage of available cash balances from projects that were delayed and invested them in much-needed projects that were ready to go.

With these funds, we created several maintenance programs with far-reaching value known as S.B. 1005 and N.C. Moving Ahead!.

As many of you may know, together Moving Ahead! and Senate Bill 1005 have provided more than $1 billion in additional funds to improve North Carolina's highway system-primarily through resurfacing, bridge replacements and traffic signal upgrades.

In addition, we elevated our TIP lettings so citizens could benefit from transportation improvements sooner.

At the same time, however, construction inflation has continued to increase, growing by 30 percent in the last three years alone.

In addition snow and ice, as well as the unprecedented series of tropical storms that hit our state this past fall, resulted in unforeseen repairs on our roadways and bridges.

Given all these factors, it is essential that we continue to work within our financial constraints, and bring our spending in line with our anticipated revenue.

This situation reinforces the need for more transportation funding in general, and the good news is that we are currently pursuing a number of solutions that will help us accomplish this goal.

Ellis and Mayor Keith Holliday are already familiar with some our work through their involvement with a new group known as N.C. Thinking Ahead, which I will highlight in a few moments, and we are certainly grateful for their agreement to serve in this capacity.

Solution 1: Implement the New Long-Range Statewide Transportation Plan
 Our first priority is implementing the new 25-year statewide transportation plan adopted by the Board of Transportation last fall.

Long-range planning is an important first step in addressing our funding needs over the long-term, and this plan serves as an "umbrella" over all our operations.

While the plan identifies a nearly $30 billion gap between need and revenue, the good news is that it serves as a long-term strategy that will help us to maximize our funds, maintain our existing infrastructure and provide North Carolinians with more transportation options.

The plan will allow the department to meet an additional 35 percent of the maintenance, modernization and preservation needs of our existing infrastructure.

It also significantly increases funding for alternative modes of transportation such as public transportation, rail and ferry-greatly enhancing transportation choice and creating the comprehensive transportation system necessary to be competitive in our 21st-century economy.

Simply put, this plan will help us do better business as it charts a new direction for the department.

We need your help in making municipalities across the state aware of the importance of long-range planning and how it can help us stretch our dollars further.

Such a tremendous gap between needs and revenue cannot be closed by NCDOT alone.

That's why we will also continue to look to the General Assembly, local governments and groups like yours to help us develop new ways to meet our state's transportation needs.

Transportation choices must not be about east versus west, urban versus rural or delivering one region's needs at the expense of another.

We are all part of One North Carolina, and our economic success as a whole depends upon giving every community access to the same opportunities.

Solution 2: Adjust the TIP
 You all have probably heard about our recent adjustments to the 2006-2012 State Transportation Improvement Program, or TIP-our seven-year blueprint for new transportation projects-to ensure that all divisions receive their fair share of funds.

This shift will ensure that we hold true to the 1999 legislative change that guarantees that funds be distributed fairly.

The 2006-2012 Draft TIP was just released, and a copy of this document is also available on our website.

This draft reflects our budget adjustments.

I'm sure most of you have already studied it quite closely and that you are providing comments on behalf of your communities.

Yesterday we began a series of public comment meetings on the draft TIP, and we are compiling feedback on the document until the final version is approved by the Board of Transportation in early July.

You can also email or mail your comments to the department-contact information is available on our website.

We are also seeking input on the 2007-2010 Draft TIP, and we will continue to work closely with planning organizations and other groups at the local level to make sure that the priorities of communities across North Carolina are represented in this document.

Solution 3: N.C. Thinking Ahead!
 One of the most important new tools we have for identifying funding is an innovative working group known as N.C. Thinking Ahead!.

As I mentioned earlier, Ellis and Mayor Holliday are members of this group.

The goal of the group is to put together realistic recommendations on how we can meet our state's transportation needs over the long term, as well as the short term.

This group brings together a wide range of transportation stakeholders and experts from across the state to examine short-term needs such as safety, maintenance and economic development.

The members of Thinking Ahead! are also charged with studying solutions to help address the resources necessary to implement the new 25-Year Statewide Transportation Plan.

The group will hold their next meeting here in Raleigh on May 26.

I am confident that this dynamic group will develop innovative solutions that will carry our state into the future.

Solution 4: The Work of the N.C. Turnpike Authority
 Another promising new opportunity is the work of the N.C. Turnpike Authority.

I know many of you are already familiar with the N.C. Turnpike Authority Board and its charge to study and develop toll roads here in North Carolina.

I am proud to serve as its chair.

Created in 2002 by the General Assembly, the Authority is currently authorized to construct, operate and maintain up to three toll roads in the state and to study three more.

We are in the process, however, of working with the General Assembly to change the language of this legislation to allow us to study up to six potential projects before deciding which three to build.

We've already held several public input meetings across the state to help us determine where these roads are most feasible, and in February we selected four projects for further study-the Gaston East-West Connector, the Monroe Connector, the Cape Fear Skyway and the Triangle Parkway.

In addition, the Authority has recently selected the firm of HNTB to serve as its general consultant, and we are currently in the process of selecting an executive director.

The use of toll financing will help us deliver needed projects to communities sooner, providing citizens with more transportation options and reducing traffic along some of the state's most congested routes.

We are excited that this type of financing is finally a viable option in our state, and we are looking forward to making toll facilities a reality for North Carolina.

Solution 5: Increase Public-Private Partnerships
 In addition, we are also looking at the possibility of utilizing more public-private partnerships to finance transportation projects.

A recently-published report from the U.S. Department of Transportation to Congress demonstrates a federal commitment to increasing the role of the private sector in transportation services and infrastructure investment and to encouraging the widespread use of public-private partnerships in transportation.

The report also suggests legislative solutions on both the state and federal level that will allow both state and local entities to take full advantage of the benefits these partnerships have to offer.

We will continue to research public-private partnerships and the new opportunities they could provide for North Carolina.

Solution 6: Increase Federal Funding
 We are also doing all we can to ensure that we continue to receive the federal support we need to meet the state's growing needs.

This includes working with our congressional delegation on the federal reauthorization bill.

One of our top priorities is to increase North Carolina's rate of return as a donor state, and we are asking for the minimum guarantee to be a 95 percent return on what our state sends to Washington in federal gas taxes.

Solution 7: Continue working with the N.C. General Assembly As you are all aware, we also continue to maintain a strong relationship with the N.C. General Assembly.

We are working with them on a number of measures that will help us better fund projects and expedite project delivery.

These include increasing the flexibility of our Secondary Road Funds to enable us to use this money to not only fund new construction of secondary roads, but also to maintain those roads that have already been paved as part of this program.

I know you all work closely with our General Assembly as well, and I urge you to continue to impress upon your legislators the need for additional avenues of transportation funding to benefit North Carolina's communities.

Solution 8: Continue to implement forward-thinking solutions
 The final solution I want to highlight is the department's commitment to implementing new programs that help streamline our operations and better plan for the future.

One excellent example of this is the Ecosystem Enhancement Program, or EEP, that we developed with DENR.

This award-winning program allows us to implement stream and wetland mitigation years in advance of construction, improving project delivery and preserving our state's natural resources.

We are also working on long-term initiatives-such as the Strategic Highway Corridor policy-which places a greater focus on highways of regional and statewide importance.

As we plan for the future, we need your help in land-use planning at the local level.

Development is very good for the state, however, we must remember to work together and plan for the future.

When making decisions about how to develop your community, it is more important than ever to consider the short and long-term impact of that development on our transportation system, as well as the overall impact to your community.

As cities grow outward, the additional traffic is putting a tremendous strain on what were once local farm to market roads.

This, in turn, is also placing an additional strain on our already very tight budget.

The importance of land-use planning was recently demonstrated in the development of the U.S. 70 Clayton Bypass project.

The town of Clayton voted to expand the buffer zone along Little Creek in order to protect endangered dwarf wedge mussels in this creek.

This decision enabled the construction of the bypass to move forward.

We must not forget how decisions we make today affect our quality of life for years to come.

Our commitment to developing new forward-thinking programs for all modes of transportation is outlined in the agenda card that was distributed to you at the beginning of this meeting.

From providing transportation infrastructure to boost economic development to improving operating efficiencies through new technology, the department is putting forth every effort to improve transportation for North Carolina and build a bright future for its citizens.

Conclusion
 Working together, I know that we can face these challenges and find innovative ways to better meet our transportation needs.

I welcome your input and ideas.

After all, you know better than I do the needs and the resources available in your communities.

Our needs are great, but so is the talent and expertise of the individuals assembled in this room.

Since I joined the department thirteen years ago, first as a Board member in 1993 then as Secretary in 2001, NCDOT has undergone some major changes.

These changes have revolutionized transportation in our state and helped North Carolina become one of the nation's most popular places to live and work.

In fact, the department just received three national environmental awards for the Reedy Creek Greenway here in Raleigh, our statewide Scenic Byways program and our environmental research program.

All of these projects demonstrate NCDOT's commitment to expanding transportation options and protecting the environment.

As we look to the future, I ask for your continued partnership in deepening the link between transportation and development-helping us make the most of our resources and identify new opportunities.

Thank you for all you've done to support our efforts to keep North Carolina moving forward.

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