Thank you, Don, for that introduction.

I wanted to come to this conference because it gives me a chance to meet you-the engineers who build and maintain our highway system.

I also wanted to come because none of you expect me to know anything and I know your expectations aren't high!

I'm also pleased to see so many of our friends and partners here tonight.

Mayor Koontz and all of the other representatives from our cities who are here, I thank you for helping us meet local transportation needs.

As Transportation Secretary, it's my job to help Governor Easley fulfill his vision of One North Carolina.

Central to this vision is a quality and integrated transportation system that brings prosperity to all North Carolinians.

With this aim, I've planned an aggressive agenda for the next four years-and at the top of my list is MAINTENANCE.

THAT IS US.

I know that in past years you have not been able to do the job you wanted because of inadequate funding-and I share your concern.

Over the last 50 years, this department invested great effort in road building, earning the name of "THE GOOD ROADS STATE."

With more and more people traveling our highways, the wear and tear has increased significantly.

Today we have a routine and resurfacing maintenance total need of nearly $800 million.

Even with our anticipated revenue for this year, we expect that we'll still have a $300 million shortfall.

Although the numbers are sobering, we should be proud of the fact that these roads have played such an important role in the success of our state.

And because the need for safe, clean and smooth highways will only increase, we must be proactive about securing funds to maintain them.

The General Assembly will be working with us to create a long-term solution, but in the meantime we must do all we can to operate more efficiently-with short-term solutions.

As you all know, the state of North Carolina is facing a deficit of about $700 million.

On Feb. 8, Gov. Easley declared a state of emergency and invoked his authority to balance the budget and protect the fiscal integrity of the state.

He has asked all departments to help reduce the shortfall through spending restrictions and budget efficiencies.

In support of his efforts, I sent out a memo that same day to all employees of DOT outlining a number of short-term measures for DOT that will help save money-from freezing vacant positions to limiting our purchasing to goods that are essential.

Since we are self-funded, our savings from these measures will go toward meeting some of our critical needs-such as maintenance.

And, as we take care of what generations before us worked so hard to build, we must also plan for the future-which brings me to my next priority-MASS TRANSIT. Anyone who travels on our interstates through our urban areas knows that the demand for transportation improvements is rapidly outpacing our ability to deliver them-just look at all the cars waiting bumper-to-bumper during rush hour.

By increasing capacity, a mass transit system will not only improve congestion, it will also help us better plan for the future.

That's why I will continue to push for an expansion of rail and public transportation across our state-it's vital that urban areas like the Triad are able to offer citizens an alternative to the car.

I'm also currently working on a number of other plans for congestion management in our urban areas, including a HIGH OCCUPANCY VEHICLE lane on Interstate 40 in the Triangle.

Because there is only so much our department can do alone, I will be asking leaders across the state to help me find solutions to our growing congestion.

As we consider the transportation needs statewide, we must also address the challenges faced in our RURAL AREAS.

While our urban areas are continuing to enjoy economic growth, our rural communities have lagged behind.

Because I grew up in a small town and know firsthand the value of our rural areas, I strongly believe that farm roads are now becoming the spokes in the economic development wheel.

That's why I am committed to providing the transportation infrastructure necessary to help these communities attract industry and jobs.

Our rural communities are particularly rich with another of our state's great blessings-our beautiful natural resources.

I have seen the results of this department's commitment to THE ENVIRONMENT-from our wetland restoration efforts to our wildlife mitigation and enhancement projects. These achievements prove that it is possible to have a quality transportation system and a beautiful, clean environment at the same time-and I will continue to ensure that our natural resources are protected.

As you can see, we have much work ahead of us.

This budget crunch emphasizes the need for creative thinking because our financial resources, no matter how much more we are able to secure, will always be limited.

What is not limited, however, is our BRAIN POWER.

Over the next three days, stretch your minds and put the benefit of your combined experience to work.

Look for a NEW WAY to do an OLD JOB!

All agencies across the state are being asked to look for efficiencies, and I want this department to lead the way-to set an example that other agencies can learn from.

We will recycle your savings into expanded maintenance programs for your area.

I know it's possible because I've seen this staff rise to the challenge many, many times before.

During Hurricanes Fran and Floyd, the record snowstorm of 2000 and the numerous other crises that have struck our state, you and your employees worked around the clock to help this state recover.

You took the lessons you learned to heart and as a result, you're even stronger than before.

As I said during my swearing-in ceremony-this department's employees are its greatest asset.

We can always replace the MOTOR GRADERS and the TRUCKS. . . . and we can always get more SALT AND SAND from the supplier but what we can never replace are our EMPLOYEES.

Just as our great state is made stronger by its diverse population, this department is bound together by its talented and dedicated workforce.

That's why I am so proud to serve as your leader.

And that's why I'm so confident about our ability to work through these challenges.

So let's pledge tonight to combine our strengths and to build an EVEN GREATER TRANSPORTATION SYSTEM that lives up to the promises of this great new century.

Thank you for inviting me for dinner!