Federal Budget/RABA

• President Bush's new budget has serious consequences for our state. The federal government has announced that there is sharp downturn in receipts to the national Highway Trust Fund starting this fiscal year and continuing through 2003.
• And Under Bush's proposed budget, North Carolina's cut in transportation funds would amount to about $200 million less than was available in 2002.
• This would reduce our funds by nearly 30 percent.
• Such a reduction will not only adversely affect our ability to meet the travel demand in our state; this would also dramatically change our federal-aid highway program, DOT's budget and the state's economy.
• This cut could result in the loss of 4,000 jobs in construction in North Carolina, at a time when our state faces the highest unemployment in over a decade.

I have written our Congressional delegation-and I have asked for their assistance to restore the obligation authority needed to maintain our transportation construction program.

Our efforts haven't stopped with Congress-we're also working closely with the Federal Highway Administration, public interest groups and the transportation industry to mitigate the effects of this reduction.

State budget shortfall

The state's budget shortfall makes our work especially challenging.

Best projections show that the shortfall may be more than $900 million by the end of the current fiscal year.

Governor Easley issued an Emergency Declaration, by Executive Order.

He ordered each agency to continue with efficiency measures and to set aside an additional 3 percent reversion targets-on top of the four percent they asked for last fall-7 percent total cut from the budget.

That's why I'll continue to work with staff to identify and implement efficiencies wherever possible-and continue to restrict travel, purchasing and hiring.

Every agency is doing its part and DOT is no exception, including:

• The 7 percent reversion.
  
• Highway Transfer--$80 million.

Reducing the Highway Maintenance Backlog

The Department worked closely with the N.C. General Assembly on the special provision in the budget bill (Senate Bill 1005). This landmark legislation authorizes NCDOT to use a portion of its cash balances for maintenance during the next three years and will enable the Department to:

• Invest about $420 million in highway maintenance across the state.
  
• In November and December of last year, the Board of Transportation approved projects totaling $153 million for the first year of funds to improve more than 400 miles of highway.
  
• Because there are two more years left in the program--$135 million in both the second and third years-other important maintenance projects will be completed across the state as part of this effort.
  
• Contracts for maintenance projects for the second year will be let in 2002, for the third year, in 2003.
  
• These funds will be used for heavy maintenance work. This work will include the replacement of deteriorating sections of highway as well as asphalt overlays.

We will continue to work with the Legislature this year to help meet our critical needs through additional dedicated maintenance funding sources.

NCDOT's Efforts to Reduce Congestion and Transportation Demand

In 2001, 246 highway construction and maintenance contracts were awarded by the N.C. Board of Transportation totaling about $1.1 billion. In addition, a number of highway construction projects that will reduce congestion and enhance traffic flow were completed across the state.

Last June, I announced measures to improve traffic flow along I-40 in the Triangle and I-77 in Charlotte-two of the most congested highways in the state.

• The Triangle plan includes construction of a temporary connector road from I-540 leading directly to Research Triangle Park in addition to projects already programmed in the TIP.
  
• For Charlotte, the Department is examining the feasibility of an HOV lane along I-77.

As part of the special provision in the budget bill, the General Assembly authorized the Department to use $45 million from cash balances over the next three years to install high-end technologies such as closed loop traffic signal systems, vehicle detection systems and incident management systems across the state.

The Incident Management Assistance Program (IMAP) has expanded to Iredell and Catawba counties.

In addition to the already 200 miles of service area, IMAP now assists motorists along I-77 from the Mecklenburg County line to I-40 (about 22 miles) and along I-40 from I-77 to U.S. 321 in Iredell and Catawba counties (about 30 miles).

The special provision in the budget bill also authorizes the Department to use $120 million from its cash balances over the next three years to expand public transportation and rail statewide as follows:

• $86 million will be used to provide state matching funds to the Triangle Transit Authority and Charlotte Area Transit Systems for regional rail systems;
  
• $10 million will be used for operating expenses for urban and regional public transportation systems; and
  
• $24 million will be used for operating and capital expenses for rural and community public transportation systems.

NCDOT, in partnership with regional transportation agencies, has initiated a series of studies which analyze several strategies that when combined, can provide alternatives and reduce congestion on some of the state's most important transportation arteries.

The strategies considered range from moving traffic more efficiently to reducing the demand for travel in single-occupant vehicles.

• Traditional capacity improvement-adding more capacity to the highway system
  
• Managed Lanes-High Occupancy Vehicle lanes, High Occupancy Toll lanes, express lanes
  
• Transit system improvements
  
• Freeway management-Intelligent Transportation Systems such as traffic cameras, overhead message signs and reversible lanes.
  
• Transportation Systems Management-efficiency improvements to highways including exclusive turn lanes at intersections and incident management systems
  
• Transportation Demand Management-ride sharing, teleworking and incentives to discourage motorists from driving alone.

Providing Transportation Infrastructure to Boost Rural Economic Development

Last September, I announced the formation of the state's first Rural Planning Organization (RPO), the Mid Carolina RPO, representing Bladen Cumberland, Harnett and Sampson counties.

RPOs give local officials the opportunity to take the lead in planning local transportation projects-helping shape the future of their region and improving quality of life by providing more local public involvement opportunities in the transportation decision making process.

Other RPOs include:

• Unifour RPO for Alexander, Burke, Caldwell and Catwaba counties;
  
• Cape Fear Regional RPO for Brunswick, Columbus and Pender counties;
  
• Kerr-Tar RPO for Franklin, Granville, Person, Vance and Warren counties;
  
• Albemarle RPO for Camden, Chowan, Currituck, Dare, Gates, Hyde, Perquimans, Tyrell and Washington counties; and
  
• Southwestern RPO for Cherokee, Clay, Grahaam, Haywood, Jackson, Macon and Swain counties.

Next week, four RPOs will be chartered including:

• Isothermal RPO for Rutherford, Polk, and McDowell counties; and
  
• Northwest Piedmont RPO for Davie, Stokes, Surry and Yadkin counties.
  
• High Country RPO for Allegheny, Ashe, Avery, Mitchell, Watauga, Wilkes, and Yancey counties; and
  
• Lake Norman RPO for Cleveland, Gaston, Iredell and Lincoln counties.

Expanding and Improving Passenger Rail Service

Last March I unveiled a plan to bring passenger rail back to western North Carolina.

• This plan includes renovating or building train stations and beginning passenger rail service from Salisbury to Asheville in 2005. It also includes acquiring property and rehabilitating historic stations in Statesville, Hickory, Morganton, Marion, Black Mountain and Old Fort and constructing new stations in Asheville and Valdese as well as track and signal improvements to reduce travel time, improve safety and increase capacity.

Last May, the Department released the results of a study on the feasibility of passenger rail for southeastern North Carolina which identified strong interest in this service.

• The study was conducted as a first step to see if there would be enough demand for rail service in southeastern North Carolina.
  
• Based on feedback from the study, the Department is focusing on three routes: Wilmington to Charlotte; Wilmington to Fayetteville and Raleigh, and Wilmington to Goldsboro to Raleigh.

Earlier this week I met with the newly appointed 18-member panel of railroad officials, local transit representatives, city officials and community leaders.

• This Rail Advisory Council will help advise me on policies and funding sources to help preserve, enhance and improve the state's rail system.
  
• These members will also act as community liaisons; helping to incorporate rail interests in local development plans.