The Winston-Salem Journal’s Paul O’Connor ponders the end of the $170 million diversion from the Highway Trust Fund to the General Fund:
Given the continuing deterioration of the state’s roads, and the GOP’s continual harping, the legislature is very likely to end the deal this year.
Sen. Linda Garrou, a budget co-chairman, said there are discussions under way to erase the transfer over several budget years — maybe three or four. That would mean that the trust fund would transfer out maybe $50 million less each year until the transfers were all gone. Given the state’s typical increase in revenue from inflation and population growth, the $50 million increment should be manageable for General Fund programs.
O’Connor also says to pay close attention to how Pat McCrory addresses the issue, considering the fact that it wasn’t really a “raid” on the trust fund after all. But it’s still fair to ask why the General Assembly couldn’t absorb the loss in revenue at the time. I guess that’s just not the way they think. And the problem, O’Connor notes, is such an arrangement led to a situation where the state will now seek a transportation bond, with the extra $170 million paying off the bond.
Servicing bond debt. Just more of what government (at all levels) needs.
