Thank you, Marshall, for that introduction.

Being here today is a true pleasure.

It is an honor to address an organization that has worked so hard on behalf of the citizens of North Carolina.

You recognize that a strong economy is essential to our state's future.

You also realize that to maintain and grow our economy, we must first address vital issues like education, the environment and transportation.

Your new coalition-NC Go!-is solid proof of your commitment to improving transportation.

By bringing so many voices together, NC Go! emphasizes the need for a collective solution to one of the state's most pressing challenges-traffic congestion.

Thank you for your cooperative spirit and your can-do attitude-I look forward to working with NC Go! in the future.

It's fitting that NCCBI should focus on transportation-after all, there's a strong connection between transportation and good business.

My experience as a CPA and my background as a business owner have given me a unique outlook on the state's transportation challenges.

There's no question that the principles of a successful business-fiscal responsibility, customer service and creative thinking-should all apply to government.

These principles will guide me as I help Governor Easley build One North Carolina-a state where EVERY COMMUNITY MATTERS and EVERY PERSON COUNTS.

On March 12, the Governor submitted a budget to the General Assembly that will help fulfill this vision.

In spite of the deficit he faced, Governor Easley not only balanced the budget, he also dedicated funds to address critical issues such as education and healthcare.

Because a quality transportation system is fundamental to One North Carolina, his budget also includes an additional $73 million for highway maintenance, $30 million for public transportation and $28 million for rail during the next two years.

These proposals are right on target with MY AGENDA for improving transportation in North Carolina.

To help us stay focussed on what's important, I've produced these agenda cards, which I'm sharing with you today.

(HOLD UP CARD)

As you can see, at the top of my list is MAINTENANCE.

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

This investment certainly paid off because our roads have played a vital role in our progress.

It's only natural that the wear and tear would start to show, aided by the harsh weather we've experienced in recent years.

Safe, smooth and clean highways are essential to our state's prosperity.

If we want to keep up with the needs of our growing population, we must be able to maintain the roads that we build.

Although the new budget will help, we'll still have about $220 million in unmet maintenance needs.

To help address these needs, we're taking a hard look at operations across the board and as part of this special project, I'm collecting ideas from employees for efficiencies and cost savings from throughout DOT.

In the next few weeks we'll be evaluating these ideas and selecting those to be implemented.

Any savings that we generate will be put toward critical needs-starting with MAINTENANCE.

It's more than good business to protect the investment that we've made in our highways-it's common sense.

And it's also common sense to plan for the future-which brings me to my next priority-MASS TRANSIT.

Just as Gov. Scott worked so hard to "get us out of the mud" 50 years ago, we must now "get out of the rut" of traffic congestion.

Traffic congestion is frustrating for everyone-it is unproductive, it raises our stress level and it creates unsafe conditions along our highways.

That's why we must look at ways to increase capacity.

By increasing capacity, a mass transit system will not only improve congestion, it will also help us better plan for the future by offering citizens an alternative to the car.

That's why I will continue to push for an expansion of rail and public transportation across our state.

But we all realize these projects take time and we must be proactive NOW.

That's why I'm aggressively pursuing a short-term solution to traffic congestion-HIGH OCCUPANCY VEHICLE or HOV LANES.

To get us moving, I've asked a select group of NCDOT staff to identify locations where HOV lanes would work across our state, such as high volume areas along Interstate 40 in Raleigh or Interstate 77 in Charlotte.

By providing a powerful incentive for motorists to carpool or use public transportation, HOV lanes have the potential to significantly reduce traffic congestion, and as a result, improve quality of life in our urban areas within a much shorter time frame than new construction.

You'll be hearing more from the department on this subject very soon.

Because congestion is growing so rapidly, I will also be working with you leaders across the state to help me find long-term solutions to address this problem.

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 can now become the spokes in the economic development wheel.

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

Our plan to bring passenger rail back to Western North Carolina is a wonderful example of how transportation and economic development can work together for the benefit of all North Carolinians-those in both our URBAN AND RURAL AREAS.

This five-phase plan, which we unveiled two weeks ago, includes operating bus service from Salisbury to Asheville, renovating or building train stations and beginning passenger rail service in 2005.

By connecting with the Piedmont and Carolinian trains, bus service will help us build a solid foundation for full-service passenger rail later on.

We'll also be rehabilitating historic stations in Statesville, Hickory, Morganton, Marion, Black Mountain and Old Fort.

What's so exciting about this plan is that we'll be sharing space in these stations with local businesses such as a visitor's center, restaurant, bakery, police substation and museum.

These stations will serve as economic hubs for these communities, building industry and meeting transportation needs.

This plan will allow us to move forward with our goal of passenger rail service for Western North Carolina in a way that is both cost-efficient and responsive to citizen needs.

We have much to be thankful for in North Carolina-especially our precious ENVIRONMENT.

The Department has done much to protect what makes our state so special and under my leadership, I plan to continue to preserve our wetlands, protect our wildlife and provide funding for projects that enhance and beautify our surroundings.

I will also see that all citizens have a voice in transportation decisions that affect them.

Recently I named Roger Sheats as Deputy Secretary for the Environment, Planning and Local Government Affairs.

Roger is committed to addressing environmental impacts early in the transportation process, ensuring the protection of North Carolina's natural resources.

He will also work with rural planning organizations and metropolitan planning organizations to build a unified planning network and improve coordination of transportation improvements with local governments.

Another change in the department is our new Board of Transportation, which met for the first time on March 16.

Our new board is slightly smaller than in the past-19 members instead of 25-but it's an EXPERIENCED BOARD and will give all citizens A STRONG VOICE for transportation in North Carolina.

In addition to members representing the 14 highway divisions, we've also got five at-large members dedicated to critical transportation issues such as the environment, state ports and aviation, finance, rural transportation and mass transit.

This Board will be invaluable to the department during the next few years, because as you can see, we have much work ahead of us.

As you know, funds are tighter than ever across state government.

In addition to our special project for efficiencies, the department is participating in a number of short-term cost-cutting measures-from freezing vacant positions to limiting our purchasing to goods that are essential.

The state's budget crunch emphasizes the need for creative thinking-and that's my specialty.

Creativity is essential because I know that no matter how many funds we are able to secure, there's not enough money available to do all that we would like to do.

All in all, the outlook is bright for transportation improvement in North Carolina.

For the large part, the challenges we face are based on increased growth.

And planned growth is always good.

More people living here means that we've got more experience . . . more resources . . . and more brain power.

We've also got groups like NCCBI who are committed to working with us to improve transportation.

Transportation is exciting because it gives us the unique ability to bring together all that makes North Carolina very special to us all-our people, our communities and our regions.

You can help us move forward by making the eight goals on these cards YOUR EIGHT GOALS.

Make this agenda YOUR AGENDA AND HELP ME MOVE NORTH CAROLINA FORWARD.

Together we can build the kind of transportation system that lives up to the promises of this great new century and makes Governor Easley's One North Carolina a reality.

Thank you for allowing me to join you today!