NCDOT faces $300 million budget shortfall from COVID-19: Some construction projects will be deferred

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While roadwork is exempt from stay-at-home requirements as an essential service, the COVID-19 pandemic could still prove costly for construction opportunities, as the North Carolina Department of Transportation (NCDOT) reports a sharp decline in gas tax revenue as fewer drivers are on the roads.

The impact is resulting in a $300 million budget shortfall for the fiscal year ending June 1 and things won’t be back to normal in the next fiscal year, either.

WWAY-TV reported that NCDOT spokeswoman Lauren Haviland said the impact of COVID-19 on the agency has been profound due to the severe reduction in gas tax revenue. The gas tax rate is 36.2 cents per gallon, which makes up 54-percent of the state’s transportation budget.

Haviland said NCDOT will release a list of projects and programs that could be impacted once a decision is made. However, programs funded with federal money, Build NC bonds and GARVEE bonds can move forward as planned.


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