Funding for state transportation projects is derived from both state and federal sources. The amounts vary annually, but 2005 offers a snapshot. In that year alone, state transportation planners managed a budget that exceeded $3.5 billion. Of this, approximately $1.1 billion consisted of aid from federal taxpayers, with the remaining $2.4 billion coming from state taxes and fees.
When we tally up all these funding sources, it means North Carolina takes in around $3.5 billion per year in revenue for transportation.
State funding comes from four areas:
The federal funding portion of the state’s transportation budget comes from allocations distributed by the U.S. Department of Transportation (USDOT). Where does USDOT get these funds? Gas taxes: the federal government collects 18.4 cents per gallon of gasoline purchased. Each state’s share of this pot is then redistributed back to the states through both formulae and special funding requests. Earmarks from congressional bills are also used to fund special projects. In 2005, for example, Charlotte received $2 million in federal money to fund 15 miles of “greenways” (bike trails and parks) in the Sugar Creek area. Beginning in 2004, federal redistributions to North Carolina have exceeded $1 billion annually for those projects listed on the state’s Transportation Improvement Program (TIP). For 2005, the federal government gave the state about $1.1 billion. NCDOT expects federal funds to decrease over the next two-to-three years.