Declining Tax Revenues Spark NCDOT To Reduce Spending

Mon November 17, 2008 - Southeast Edition
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RALEIGH, N.C. (AP) The North Carolina Department of Transportation is trimming its budget by $50 million due to declining road-building tax revenues.

The Charlotte Observer reported Oct. 17 that agency Secretary Lyndo Tippett enacted the 6 percent spending reductions that week. He’s extended a hiring freeze, stopped travel expenses and canceled equipment purchases.

Tippett said the reductions will likely lead to highway construction delays.

The reduction reflects a decline in revenues from the state’s gasoline tax and tax on car sales. The taxes are lower because people are driving less and buying fewer or less expensive vehicles.

Earlier, the department said Division of Motor Vehicles offices were told to close promptly at 5 p.m. in Charlotte and Raleigh to avoid paying staff overtime.