57% of the revenue NCDOT currently uses to fund infrastructure projects will decline over the next decade as the vitality of the motor fuels tax diminishes. Unfortunately, the fluctuation in this tax makes transportation infrastructure funding volatile and unsustainable. If the North Carolina fails to implement solutions to diversify revenues, the state’s heavy reliance on the tax will keep it from meeting demand in the not-too-distant future.
Thankfully, Build NC is one such solution.
Build NC is a new financing tool that will authorize NCDOT to leverage existing transportation financing capacity by establishing a state GARVEE program modeled after the successful federal program. This program will benefit the divisional and regional level funding buckets of Strategic Transportation Investments and provide much needed predictability in transportation infrastructure funding. Backed by the Highway Trust Fund, Build NC will not impact the General Fund and can only be utilized if NCDOT continues to spend down the cash balance through strong project delivery. This program will have the same checks and balances as that of the federal GARVEE program and offer a funding mechanism that rural communities have never had before. Not only will Build NC help fund the critical projects already identified in NCDOT’s ten year plan, but it will increase the number of projects that can be delivered.
While Build NC alone will not solve all of North Carolina’s revenue challenges, it will provide much needed funds until North Carolina develops more long-term solutions. Yesterday, the Build NC Bond Act was passed out of the House Transportation and Senate Finance Committees and is up for consideration by the House Appropriations Committee today. As a key priority outlined in our 2018 Jobs Agenda, we’re making sure legislators know their vote on this counts. With opposition attempting to derail the bill, it’s important your legislator knows that passing the Build NC Bond Act is important to the state’s business community. Call your legislator and express your support for Build NC. I look forward to sharing more updates with you soon.
Gary J. Salamido
Vice President, Government Affairs