The N.C. Department of Transportation has seen a sharp decline in revenue that has resulted in the department falling below the mandated cash floor of $293 million dollars.
As a result, the department can no longer enter into new contracts for transportation projects.
North Carolina DOT is funded entirely by motor fuels taxes, highway use taxes and DMV fees. The DOT will lose more than $300 million dollars in revenue for the fiscal year ending June 30 because of the effect of COVID-19 restrictions.
While below the cash floor, DOT can continue active projects and maintain infrastructure, continue to operate DMV funciton, respond to emergency situations and hire new employees for critical, safety related positions.
It cannot negotiate right fo way purchases on projects not underway, purchase additional equipment except as obligated in an existing contract, and cannot award new construction, enginieering or repair contracts.
Nearly half of all temporary employees and embedded consultants have been laid off and most programs suspended.
It has also canceled the contract for the passenger ferry between Hatteras and Ocracoke.
They are also looking additional furloughs and evaluating programs and areas for potential cuts.