Thank you, Betsy, for that introduction.

And thank you all for inviting me here today.

Because of groups like yours, public transportation is getting a lot of attention -- and it's about time.

Our highways are becoming increasingly congested and we are looking to public transportation systems more than ever for alternatives to the car.

At DOT, we have an aggressive agenda laid out to provide a safe, well-maintained and integrated transportation system for all citizens.

I have brought agenda cards for each of you.

You will see that public transportation is part of that agenda. But before we talk about public transportation, I want to briefly go over some other items on our agenda.

One of those items is reducing the highway maintenance backlog.

• We have an excellent highway system, but we must properly maintain what generations before us have worked so hard to build.
  
• We've all hit potholes as we drive down the road.
• It's frustrating for us and hard on our cars, trucks and buses.
  
• The department is faced with a maintenance shortfall of about $200 million.
  
• We're doing all we can to reduce this shortfall, starting with internal efficiencies.
  
• We're currently in the middle of a special project to gather ideas from employees that will improve efficiency and cut costs.
  
• I'm pleased to say that already we have made much progress.

• From streamlining the construction process to reducing administrative costs, we have strengthened our operations as well as improved our efficiency.
  
• Also, Sen. Gulley, Rep. Nelson Cole and I had held a briefing several weeks ago on DOT's progress on efficiencies and recommendations outlined by the Transportation Finance Committee to ensure the most efficient use of resources.
  
• In the end, all savings that we generate will be recycled directly into maintenance.

We're also expanding our environmental efforts that protect what makes North Carolina so special -- from wetland and stream restoration, to wildlife habitats and beautification projects.

And, we're looking to public transportation and mass transit to reduce the number of cars on the road and improve air quality.

A critical part of the DOT agenda is reducing congestion to enhance continued growth in urban areas while also providing transportation infrastructure to boost rural economic development.

• This includes planning and expanding mass transit and improving rail, aviation, bicycle, ferries and public transportation statewide.

• With these funds, we have been able to initiate new programs -- such as the Facility Program for Community Transportation Systems

• Through this program the department assists the state's 100 counties and urban areas with populations less than 50,000 with planning, funding and operating transportation services.
  
• Also, increased funding for the State Maintenance Assistance Program from $3 million to $14 million has made it possible for fixed route transit systems to maintain -- or in some cases expand -- their service level.

Other important public transportation projects underway include:

• Working with the Triangle Transit Authority and the Charlotte Area Transit System to identify the amount of funds required to meet the state's commitment of 25 percent for their fixed guideway project costs.
  
• We are also working with them to identify the schedule of when statefunds will need to be obligated and expended.
  
• The commitment of state funds is a critical component of the financing plan -- and federal approval of funds -- for the projects.

Also, to increase highway capacity, Transit Demand Management Programs -- or TDMs -- are underway in Charlotte, Research Triangle Park, Durham and Wilmington.

• In Charlotte, the department funds 50 percent of the cost of the Commuter Register tabloid, which describes vanpool, carpool and transit options for commuters.
  
• Wilmington's TDM effort has already resulted in the addition of significant transit services in the UNC Wilmington and Corning plant areas of the city.

To further the state's goal of a seamless transportation network, the Public Transportation Division along with the Rail Division is working with local governments on intermodal transportation center projects in Charlotte, Durham, Greensboro, Raleigh and Wilmington.

• These facilities will bring together city bus, intercity bus and intercity passenger rail services in one location -- often with supporting activities that would be privately funded, such as day care centers.

We also are helping our rural and small urban communities.

• In fiscal year 1998/99, the department initiated the Community Transportation Program to enhance rural human service and general public transportation services.
  
• These systems provide about 6.5 million trips for citizens annually, using nearly 1,700 vehicles.

To improve air quality in our state, the department is working with other state agencies, transit systems, fuel suppliers, bus manufacturers and environmental groups on an Alternative Fuel Bus Purchase Plan.

• The plan addresses how at least 50 percent of transit buses purchased in most urban areas starting in 2004 could be alternatively-fueled or be low-emission buses.

Public transportation services are more important than ever as we experience gridlock on our highways resulting in lost time and diminished air quality.

Of course, as the demand for services increases, so does the need for more funding.

That's why you are taking your case to the General Assembly this afternoon.

I applaud you for all your efforts to make transit systems successful across the state, and thank you for your support of DOT as we strive to fulfill our mission.

Together, we will work to provide North Carolina citizens a safe and efficient transportation system that meets their individual needs.