Thank you, Burt, for that introduction.

It is a pleasure to be here with you today.

I want to take a minute to thank Burt and the other NCDOT employees who are members of this organization for their hard work.

I have talked to many of you before about the aggressive agenda I have set for the department, and because of transportation professionals like all of you, we have already made great strides toward achieving the goals laid out in this agenda.

We're nearing the end of the year, and I'd like to give you an update today on where we are in meeting these goals.

I have many good things to report, but I'll just hit the highlights today.

I'd like to start with my number one priority -- reducing the maintenance backlog.

We have a responsibility to take care of the excellent highway system that generations before us worked so hard to put in place.

While the state's budget shortfall makes meeting our maintenance needs challenging, the department is taking steps to ensure these needs are met.

We worked closely with the General Assembly to get landmark legislation passed that will enable the department to move about $420 million from our cash balances to use for heavy maintenance work.

We're excited about this legislation -- which is the most significant legislation passed since the Highway Trust Fund in 1989 -- and are moving ahead as soon as possible with much needed maintenance needs throughout the state.

In the first year alone, this will allow us to improve about 400 miles of highway -- and we aren't wasting anytime getting started.

Just last week, the Board of Transportation approved resurfacing projects totaling $65 million.

In December, the board is expected to award additional resurfacing contracts totaling $88 million.

These projects will begin as soon as weather permits.

There is an additional $135 million available for the next two years -- benefiting all areas of the state.

This legislation will also allow the department to use $45 million over the next three years to install high-end technologies such as closed loop traffic signal systems, vehicle detection systems and incident management systems.

And, an additional $45 million would be used for planning and design of "shelf projects."

These are projects outside DOT's current seven-year Transportation Improvement Program that can be ready for construction when new funding is available.

It also provides and additional $120 million for public transportation over the next three years.

This money will be used for state matching funds to Triangle Transit Authority and Charlotte Area Transit Systems for regional rail systems and for operating expenses for urban, rural and community public transportation programs.

You can see why this legislation is so significant.

But, we aren't going to stop there.

We're also looking internally for additional money to meet our critical transportation needs.

We've taken a hard look at the way we do business and have identified areas for efficiencies and cost savings throughout the department.

The savings we generate will be used to meet our critical needs such as maintenance.

Technology is another way we can increase our efficiency and better serve our customers.

An example of this is our new electronic bidding system.

This system allows contractors to submit bids for projects through the internet --resulting in administrative cost savings and time savings for contractors and DOT.

Although this is on a voluntary basis right now, next year we will require contractors to submit bids electronically. We're also excited about our Business System Improvement Project that we call BSIP.

This project involves the replacement of our outdated accounting system with new, state-of-the-art software known as Systems Application Program or SAP.

This system will result in less paperwork, better reporting, more timely processing of payments and will reduce overall administrative costs for the department.

We're in the implementation phase of this project right now and expect to have it completed by July of next year.

In addition to using technology, we're looking at alternative delivery methods for highway projects.

One such method is the design-build process which will reduce costs and project delivery time.

Currently, we have two design-build projects underway -- I-77 widening in Charlotte and I-26 widening in Henderson County.

Last week, the Board of Transportation awarded a contract to widen I-77 from I-85 in Charlotte to north of the Charlotte Outer Loop from four to eight lanes.

We all know the design-build process enables the contractor to make innovations and efficiencies that can reduce costs and speed up a project.

The contract was awarded to Rea Construction Company and work is scheduled to begin in early December and be completed in November 2004.

That's two years sooner than originally scheduled under traditional methods.

We are completing the environmental process on the widening of I-26 in Henderson County and anticipate to award the project early next year.

The General Assembly passed legislation in 1998, allowing the department to choose three design-build projects each year.

We've already chosen our projects for next year -- the U.S. 64 Knightdale Bypass, widening of I-85 north of Charlotte and the I-85/Ruin Creek Road interchange in Vance County.

We selected these projects because they have minimal environmental impacts and work will be performed within existing right of way.

The use of design-build also will help us meet another one of my goals which is to reduce congestion in our urban areas.

These areas are already heavily congested, and now we'll be able to deliver some much needed projects sooner than under traditional methods.

But, we understand that adding and widening highways alone will not solve traffic congestion.

We must offer citizens an alternative to the automobile, and that's why we are working to expand mass transit and public transportation systems throughout the state.

As we work to improve congestion in our urban areas, we must not forget the transportation needs of our rural areas.

Good transportation infrastructure is crucial to helping these areas attract business and industry in order to prosper.

I believe that our farm roads are the spokes in the economic development wheel for our rural areas.

In September, I announced the formation of the state's first rural transportation planning organization, or RPO.

As of today, we now have four RPOs representing 16 counties in North Carolina -and will be announcing the formation of more in the future.

These are voluntary organizations made up of local elected officials and local transportation representatives that will serve in an advisory role for the department.

They also provide a unique opportunity for area leaders to shape the future of their region.

RPOs also are part of responsible planning and transportation decision making.

The decisions we make today affect the future of North Carolina.

And we must be ever mindful of the state's precious natural resources as we plan for the future.

The department continually works internally and with other state agencies to minimize our impact to both the human and natural environment.

By being good stewards of the environment, we can also enhance the quality of life we enjoy so much.

From getting our children to school to receiving supplies, we depend on transportation everyday in practically every aspect of our lives.

All of us in the transportation industry must work together to meet our common goal of providing North Carolinians a quality transportation system that also enhances our quality of life.

The agenda I have set for the department will ensure that we meet these goals and do our part to make Governor Easley's vision of One North Carolina a reality.

Your organization represents all areas of the transportation industry -- from education, planning, design and construction -- and through your jobs you help make North Carolina a better place to live.