NCBOT Drafts Recommendations for Sponsorship, Commercial Fees and Privatization

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At the direction of the General Assembly, the North Carolina Board of Transportation studied how fees, sponsorship and privatization might be used to reduce the use of public funds for services provided by the Department of Transportation.

To carry out duties assigned under the 2014 Budget Bill (Section 34.17(a)), the board received information and discussed opportunities during a joint committee meeting in October and continued to research, review and compile additional information provided by NCDOT staff.

Recommendations include new sponsorship opportunities for highway litter removal and rest areas, implementing or increasing some fees for current NCDOT services including traffic analysis and inspections, and some additional costs for outdoor advertising. A copy of the sponsorship report and a summary of the fees can be found on the NCDOT website.

The recommendations are expected to serve as a basis for policy deliberations by the General Assembly concerning the balance between public funding of infrastructure and user fee based service provision.

In many cases NCDOT currently does not collect enough in fees to cover services, and additional funds could be used to help build and maintain the state’s transportation network.

The Board will not be voting to approve any fees this week. It is simply required to approve and submit study recommendations to the Joint Legislative Transportation Oversight Committee and the Fiscal Research Division no later than December 1, 2014.

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