The North Carolina Department of Transportation (NCDOT) will delay some projects this year as efforts to combat the COVID-19 pandemic have resulted in a $300 million budget shortfall.
NCDOT said because it is funded through motor fuels tax, highway use tax, and DMV fees, the dramatic fall in traffic volumes that resulted from stay-at-home orders have negatively impacted the department’s revenue stream. Because of that, all but about 50 major projects scheduled to start in the next year will be put off.
Only projects funded through GARVEE bonds, BUILD NC bonds and federal grants will move forward. Projects that have already begun will proceed, as will those that have already been awarded.
Projects put on hold include several bridges and bridge replacements across the state, interchange improvements to I-440 in Raleigh, bridge and pavement rehabilitation on I-26 from the Tennessee state line to mile marker 9, and three projects to widen I-95 to eight lanes totaling more than $200 million.
Additionally, the department said it will take other steps to decrease expenditures, including buying only mission-critical items; laying off consultants; suspending or decreasing many programs and services; and putting a freeze on hiring for all positions except those that impact public safety. The department said it is developing plans for furloughs and reduction in force actions, but that no decision had been made to move further with either of those plans.