[BLANK_AUDIO] [BLANK_AUDIO] Ladies and gentleman I pause for just a minute waiting on Representative [INAUDIBLE AUDIO] run to the office and get back so. [BLANK_AUDIO] [BLANK_AUDIO] [BLANK_AUDIO] [BLANK_AUDIO] So all of you guys have a great interim? >> [INAUDIBLE AUDIO] So that might be worth one bill getting through the committee, but anyway. Just kidding. >> [INAUDIBLE AUDIO] >> Where did she sit? >>[INAUDIBLE AUDIO] [INAUDIBLE] [BLANK_AUDIO] [BLANK_AUDIO] I'll like to do a system check fido/g. You, the mint/g comes go you'll ready? [SOUND] Good morning ladies and gentlemen and welcome to the first of many, many, many transportation appropriations meeting in the wines of this session, hopefully a very short session. So you might be getting large ideas, well if you do We will have those in 2017. Anyway welcome it's a pleasure to be here, it's great to see everyone again, mine is a very brief interim. Somewhat enjoyable until you have to come back to Raleigh it anyway it's another story. I'd like to welcome our house pages here thank you all for being here today. And when I call your name would you just give us one of those waves or yells or something. Brandon Bucanon, is that correct? >> Yeah. >> I pronounced that right didn't I? Gabriel, oh lord, Glumoles/g How do you actually pronounce your last name? >> [INAUDIBLE AUDIO]. >> [INAUDIBLE AUDIO] was that close at all? >> Yeah >> Okay all right you all [INAUDIBLE AUDIO] here today okay. [INAUDIBLE AUDIO]? >> Yeah. >> Was that good? >> Yeah. >> And how do you pronounce your last name? Marshall. >> Marshall was that good excellent. Anne Madison joins/g I got one right thank you all, where are you from? Madison where are you from?>> Winston Salem >> Winston Salem. >> Greensboro. >> Greensboro. >> [INAUDIBLE AUDIO] >> [INAUDIBLE AUDIO] what's county What county is that in? >> [LAUGH] >> [INAUDIBLE AUDIO] >> No I'm from [INAUDIBLE AUDIO]. >> I'm teasing I'm just teasing with you. Yes sir >> [INAUDIBLE AUDIO]. >> Brazil? >> [INAUDIBLE AUDIO]. >> That's [INAUDIBLE AUDIO] is that Rogers [INAUDIBLE AUDIO] lower left of the state? You're welcome guys hope you enjoy your stay here I know it's a brief one and you'll probably go by faster than you had hoped it would. But I hope you get to learn something and when you have it it figured out the end of the week. You need to come out and explain it to me so I may know. I will ask the sergeant at arms to quickly remove the individual who had the cell phone going on Going off and
>> [LAUGH] >> Just kidding thank you all for being here. The people that look after us each and every week which I don't there they are. Our house sergeant at arms Mr Barry Moore, David? >> Smith. >> Smith [LAUGH] David what's your last name David? >> [INAUDIBLE AUDIO]. >> [INAUDIBLE AUDIO] it's just like it's spelt but it looks very difficult. And we were gonna have our senate [UNKNOWN] joining us, but I think they have something else creep up so they graciously the senate sergeant at arms [INAUDIBLE AUDIO] Francis Patterson. Thank you very much Howl/g Rosh/g thank you very much. [BLANK_AUDIO] Members we are going to attend [INAUDIBLE AUDIO] last minutes yesterday they evidently had something else crop up I don't know what the proper protocol is, but if you need to go somewhere else, please feel free or you are very much welcome to stay with us. >> We'll be glad to stay. >> Thank you guys. All right moving right along, before I get started [INAUDIBLE AUDIO] actually we have also a couple of chairs here. Actually we have all of them here now, and I will offer to him a little time if you have any brief comments to anti committee, and post will go with Representative and co chair of Bill Shepherd. Bill would you like to add any comments? >> No I think we can afford to give minimal time and get back home real quick. [INAUDIBLE AUDIO] >> Not a problem Representative co-chair Frank Iler. [INAUDIBLE AUDIO] >> It probably be unanimous won't it? Representative Co-chair Paul Tine. >> I've nothing original at this time. [LAUGH] I was just trying to give myself a little More flags the burial in Morley. >> And just for the listening audience in those stating in the audience, If you have any issues with this committee, I would direct them to co chair Paul Pine, since that he is elected not to be with us next session, so we are gonna pile as much on him as we possibly can. In the advance of what would be a very fast running short session, thank you for your service to your people first to your state. And to this committee and transportation overall for the entire state, you've always been very impressed with. You don't simply come into this room and myopically focus on your District although that is key and Instrumental. But you look at your district and you look at the impact, the transportation has in the entire state and for that I'm deep with respect of you, a lot of gratitude in your service to state, thank you for that. >> Thank you for letting me know. >> All right as you know the Governor released budget information and we had a full For appropriations meeting yesterday which I wish I could remember Andrew, I remember Andrew, the Director of the vote, spoke to us and that we are gonna start drilling dams specifically as it is relative for transportation and I'm pleased they'd have Mr. Thomas Cheek, Thomas There you are, thank you very much the assistant state budget officer, officer state budget management come and go to the government budget all over the transportation, Thomas thank you very much you had the floor and I will do my best following questions till after your have gone through your Thank you Mr Chairman, members of the committee, my name is Thomas Cheek, Assistant State budge Officer, Office of State budge and Management. [BLANK AUDIO] I'm told that you have electronic copies of the presentation. We also have it on the monitors. I do have some hard copies if you're having trouble accessing your electronic copy. >> Anybody else need one? >> Yeah. >> Anybody else need one? >> Do you want one? >> Yeah, but >> Yeah I'll give him [INAUDIBLE] >> I hope I brought enough, I only printed six copies, >> We're fine >> Okay. We'll start off with the revenue forecast. The Short session consensuses forecast between our office and your fiscal research division or chief economist I should say predicted a 2.5 billion dollar and I'm rounding the numbers. 2.5 billion dollar budget for the short session that's compared to the 1.99 billion that That was in the based budge during the long session. Then it climbs to 59.3 million in extra dollars that could be used
for supplemental budget adjustments. And that's our highway fund for highway trust fund that consumers forecast is projecting 1.37 billion verse that 1.34 we had in the In the long session budget which is generating extra 30.9 million dollars. So together we are looking at 90.2 million additional fund that can be used to supplement the budget. So what's driving that extra income? Well for the highway fund motor fuel Consumption compare to the biennial forecast of the original forecast projected that the our citizens and visitors with consumer 5.37 billion gallons of gas. However the projections are saying they're gonna consumer 5.6 billion gallons Which is the 3.4% increase, that increase equates to 30.6 million in extra fuel tax revenue for the highway fund well in totally 30.6 million in extra funds. 24.5 is going to the highway fund 6 million will go to go to the trust fund. Also to the highway fund DMV fees are coming in a little bit higher than projected. We're projecting 35 million in additional fees for the highway fund. So together those factors are equating to the 59.3 million we're looking at an extra income. For the highway fund. For the highway trust fund I already mentioned the 6 million for he motor fuel tax. For the highway use taxes also the forecast projected 1% growth we are actually looking at 8% growth. Which equates to $24 million in the highway use tax. We also have a million Million dollars in the DMV fees going to the highway trust fund. So those factors equate to the 30.9 million in extra income. [BLANK_AUDIO] We are going to jump all the way over to what's labeled page Page 102 I believe and actually start talking about the recommendations of having used that extra money in the governors budget. The first item is the 3% one time bonus that you heard about yesterday for stating place this 9.7 will cover the employees paid out of the highway fund. As the director indicated yesterday this would mark account towards the retirement contribution for state employees, there is also capped at 3000 max for any individual employee. The second item we are putting in a salary adjustment fund for DOT. Last session we had a salary adjustment fund in the general fund, and we did not put one in for DOT. We also have a salary adjustment fund and the general fund this year. So this year we are putting in funds for salary adjustment for the Department of Transportation. Items three through seven are related to DMV. We have military training program which will be in conjunction with Johnson Community College, Fort Bragg in Cumberland, this will help Train military personnel. There are planning to leave the military to allow them to get there CDL license and become truck drivers. We have promotion of our own line DMV services trying to push people away from the DMV offices to use more of the technology that we have in place to [INAUDIBLE] and to get ID cards that so far. Number five Governor highlighted this item putting more money to reduce the volume at high traffic DMV offices this is one of the highlights that Mr Heath discussed yesterday. It's 95 contracted personnel there will be licensed examiners that can actually serve the customers. Number six you've seen this before this little To maintain the 44 [INAUDIBLE] we are asking them to permanent call center personnel for the tax/g and tuck/g program. At fiscal year 14 DMV stated that they had 385,000 calls related to That contact the good thing that number one up to floor 97, and
they don't see the number going down, apparently now the call center is being got to for LEA for counties to direct any questions consumers have on tax and tag, GDMV, no that's why they are asking to continue the permanently. Rural code review program number seven. This is to provide 21 contract nurses and seven full time personnel to augment the medical review program. >> iii the statutory adjustment, it's the 300,000 Thousand dollars went to the bridge program. Any funds left over from the gasoline inspection tanks after we take out the admin, expenses for the department of agriculture and the department of revenue go to the bridge program. This is just a small revenue stream for that program, most of the money Procreated from highway funds. Number nine is to promote bicycle safety. Unfortunately we have an uptake in bicycle deaths and injuries in North Carolina. The department felt strongly that we needed to actually do some prevented work to try to save lives. so this will educate drivers as well as bicyclists. Number 10 was to support a multicounty rural transit system, This is instead of funds to try to have rural systems to consolidate and provide better coverage in rural areas, possibly even possibly even multi county transit pathways iii to get to work, school or medical appointments that might be in areas that current transit systems do not cover. [INAUDIBLE] the airport, that $1.5 million Hours to increase that. Number 12 is the urban state maintenance program. This will provide funds for eight counties or eight urban areas I should say that was identified in the 2010 sentences/g that are not receiving any program money at this time. 24 Before are already receiving funding this will add another eight. 13, secondary road maintenance we've got 17.4 going into that program. In the long session I should say there was 20 some million in non-reoccuring Program this recurring money will keep total close to what we had for 15/16. 15/16 had 305.9 million for secondary roads. this additional money will keep that level at 3.27. Number 14 this is another item the governor felt strongly about is litter removal. This would be in the maintenance pot/g but at his travels he saw too much debris and litter on our road way. So that was emphasis he had going to this budget cycle. Small urban construction program. You probably recognize this item also. It was none recurring in the long session budget for 15/16 only. We would like to continue that recurring at the same amount to 2.5 million. 16 is another tax tag/g program preposition I should say. this is one position for the fiscal office, they do audit and verify the collection of vehicle property taxes from the LEAs. I should say that 16 and the 44 I mentioned for DMV are all receipt supported and are coming from overhead fee that the counties are charged around the program that fee only covers thsi positions but it also covers the operation of the system itself that's all being handled by the Department of Revenue. [BLANK_AUDIO] Number 17 capital repair innovation this is for the very division who's to build a share to contain sand blasting material so that it doesn't [INAUDIBLE] surrounding water way Finally 18 is a retirement adjustment, the retirement rate base on actuarial assessment should 15.7% right now is at 15.32 so this adjustment you'll see in every budget for every agency to adjust the retirement Retire my contribution, switching over to 104 and we quickly run to through the items through their highly trust fund as I mentioned
I was 30.9 million in extra revenue to so I'm not keeping up on the clicker to be distributed so most of the money is going into Refers strategic investment wide item that's 29.8 million dollars, we do have some admin items they are also included, we have the one time bonus of three percent that's to cover the employees paid out of the trust fund but [INAUDIBLE] fund similar to the highway fund Fine again for employees paid out of the stress line and then the state retirement adjustment which covers employees paid out of the trust fund so those are the three admin items for the trust fund a bulk of the money is going to construction so that's the recommendation Shall be glad to take questions [BLANK_AUDIO] >> Thank you for your brevity. >> On page 150 that I number five where you are going to increase the drivers licence examiners, they called him contract drivers [INAUDIBLE] now jobs right now, state employee, positions, are this going to be different than the others that are already there? >> These are the contracted personnel- >> They will be full time state employees- >> That was your follow up [LAUGH] [INAUDIBLE AUDIO] >> Well you'll notice that the funds are nonrecurring. We were hoping that the promotion and the technology will eventually start moving people away from having to go into DMV office. We want the approach to actually have to go to a DMV office be the ones that if you have to get a drivers test or something the ones actually have to go. If you are just getting a renewal, yo don't have to have a test we would like the individuals to go online if you need a ID card go online to do that. So we With the promotional piece of it in item four, will start pushing people away from the central offices. But right now we still have a high volume of folks coming in. So we're hoping that people will become educated and eventually move away from going in. Follow up ->> Just a little comment, I think it's a wonderful idea but the fact of the matter I live in the area and a lot of computers don't have computers. So they're gonna be reluctant, they are gonna do it the old fashion way to continue to go in, unless there is a site somewhere they can go to computer and sit down >> Well I'm part of that Promotion we did say online, but the department will be deploying Kiosk also so there will be options to have those set up and rural areas where they could do transactions also. >> Can I add one more thing? I would add one thing an effort to help reduce or increase speed or throughput to that effect. It was brought tom our attention that If you renew your drivers license online of course you didn't go into the office, so you didn't have to do your eye test or any of that stuff. But the people that were going in not renewing online still had to do that, and we say well, you know if the people online don't have to why should people walking in have to so we're removing some of that Which should also increase the flow and increase the speed. You know, when you get in that type of logistical top business throughput couple of seconds on each person adds up to minutes and hours at the other one. >>Follow up >> So I get older, my eyes are very big that I don't have to worry about having to wear glasses or anything. [LAUGH] Just take it. >> Your license still will reflect that and you will be receiving a sum in just pulling over and you're not wearing your glasses. German Island. >> On your revenues assumptions, down here, revenue pages, at the bottom it says how would you tax increase close to $24 million. That looks like a huge increase in number of vehicles sold. Best collected with one of our vehicles >> Yes. >> Senator, would you help the assumption in the increase in vehicles? >> Well we're actually seeing needs still that pent up demand, I guess carrying over from the recession of people buying vehicles. There's also a big pickup and truck purchases. So I didn't mention that with the motor fuel consumption mixed in with overall consumption growth, cuz also people are buying more trucks which use more fuel. So right we're still seeing a lot of purchase of vehicles. From what I'm told by our economist they're still looking out for that to flatten out in the out years, going out.
But right now we're looking at 90% growth in the east tax right now. >> What's the growth? >> We projected 1% growth, they forecast 8% so that's a 7% difference. >> Representative Turner. >> Thank you Mr. Chair. You know there's the big number after and then there's the implementation behind it and everything. So this may be a question for DOT to come back and then we're gonna have them in a couple of meetings to talk Talk >>I guess we'll have them several meetings>> Yes >> But 10 million dollars for the litter and debris removal which I agree, that the brand of the state and the quality of life is important to our economy but $ 10 million when you've got the adopt a road systems, the divisional maintenance, there's a lot of crossover programs, there's the prisons programs which we used to do, which we don't seem to be doing as much especially in certain areas. There's a lot of crossover as opposed to one big pot of money and I'd be interested to hear from DOT. As we move forward can we not maximize the collaborative effort of our existing assets as opposed to sowing $ 10 million. $10 million is a lot of money. It doesn't seem like it inside of a 4.6 but apparently it's a lot of money when you talk about replace it. So I'd be interested to see as we move forward why that $ 10 million is necessary, and it's probably not for you to answer yet at this point. >> My guess is DOT has actually heard your reply from wherever they are. >> I thought so. >> And that they will receive some type of response in the upcoming coming May. >> Thank you very much. >> Any other questions? Stay calm. >> Good morning, Representative Ford. >> Yes, I know I brought this up last year, a lot of people don't like it, but my tax collector Rolling County Kelvin Berg, called me last week. They're still having terrible problems with the tagging tax. It's causing mass confusion, the computer systems don't talk. When they can't figure out someone's address, or if you got the old RSV address the tax automatically defaults to the county seat. So the town of Easte Windsor and Landis have both contacted me. They'r losing tax revenue to City of Salisbury. And I know from experience cuz I'm a businessman, the license in Kannapolis and my tax sits Salisbury in Rolling County. And so there are mistakes, I've witnessed it first hand and they're still having problems with it and people come in to the tax office and have to go back to the tag office and vice versa. So he just They're still dealing with it, and it's put a lot more work on the tax office and all the campus. And they're losing money. >> Thank you for bringing that to our attention, I apologize I didn't remember you stating that last year, I'm certain you did but in an effort to address that, I'm gonna respectfully ask a member from NCDOT to happens to be sitting on the front row Miss Mary, >> Yes sir, >> you don't have to explain, would you please get with Representative Ford and bring the commission into that camp, and see if we can get those address, post heist and >> We have set a meeting [INAUDIBLE] for it>> Thank you. >> Any other questions? Any other questions? That was easy. >> Well, thank you. >> And you were worried, weren't you? >> Yes, I was. >> [LAUGH] >> We're not as means as we look, I promise. >> No without a problem, thank you. You're welcome back anytime. All right and I would go out I'm amazed that I forgot to mention if most of you guys in this room in attendance have been here multiple times before and [UNKNOWN] void in the room today, have you all noticed that? And that large void is not related to her direct size but Miss Cameroon, who serves as one of our staff members, very knowledgeable at transportation is probably at this very time, don't know what the time change is but probably [UNKNOWN] somewhere around Europe somewhere. >> [LAUGH] >> So we wish her best luck and speedy return, I think she's [UNKNOWN] till back next week Next week, obviously going to be refreshed, re-energized, rebooted and ready to tackle the task in front of us. But we do miss her, wish her well and hope she'll be back safe and sound and join us next week. Note to Chairs, we had scheduled a chairs meeting after this meeting. That meeting will no longer take place Take place we are going to pump back to Monday at three o'clock okay, any question from the audience at this time, while we bunch
say not and what your emails will address when the next meeting time unless we already know I think we do I think representatives shepherd is chairing the next And just want your emails meeting. Thank you very much. Meeting is adjourned. >> [NOISE]