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North Carolina

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ARMOURERERIC:
So, I see NC Dots STIP is reported to be around $8B overcommitted  over the next 10 years, I look at their annual budget of $6B, does this mean that they just need to stretch their current list out an extra 18 months?  What is the real story, did the infrastructure  bill help at all?  NC is looking at a decent state surplus, do you see any extra money being dropped in the bucket from the state?

froggie:
The inflation of the past several months likely played a factor there.  It's effectively made the infrastructure bill a wash.

cowboy_wilhelm:
From what I've gathered reading through their online documents, NCDOT significantly over-programmed the STIP based on poor planning that grossly under-estimated right-of-way and construction costs (see slide 15 here), meaning they added too many projects they couldn't afford to construct all at once once actual costs were determined during the design phase. As previously discussed, a combination of storm recovery costs, Map Act settlements and COVID impacts to revenue delayed many projects by a few years. They have recovered their budget, but now you have inflation driving costs much higher for projects that were delayed and originally estimated at x dollars several years ago. In order to fund upcoming projects that may costs tens of millions of dollars more to construct now, they have to delay other projects, and it continues to cascade. So, like us at the grocery store, they're getting less from the money in their pocket than they used to and aren't adding any new projects to the STIP until they can construct their committed projects.

ARMOURERERIC:
I do understand the concept, but do they have kind of estimate of when they may be back on track?

Rothman:
Wonder if FHWA is looser with NC than they are with NY.  Fiscal constraint of the STIP is watched over closely and FHWA requires offsets.  NY can't report their STIP as being "overcommitted" when the update is complete.

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