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Thursday, November 21, 2024

Transportation department facing furloughs after budget shortfall, claims of mismanagement

Beth

North Carolina State Auditor Beth Wood released a report showing how Department of Transportation had a budget shortfall of $740 million last year due to mismanagement. | Facebook

North Carolina State Auditor Beth Wood released a report showing how Department of Transportation had a budget shortfall of $740 million last year due to mismanagement. | Facebook

The North Carolina Department of Transportation will furlough employees to help manage a budget shortfall while the state auditor's report said the agency overspent its funding by almost $750 million. 

In an email to staff, Transportation Secretary Eric Boyette said furloughs will be taken in eight-hour increments each week, according to WBTV in May. Executive leadership is required to take 30 hours of furloughed time by June 26, and senior leadership has to log 25 hours between May 23 and June 26. Other staff must take 20 hours between May 30 and June 26.

“This is a challenging and uncertain time for all employees within the Department," Boyette said in the email, according to the WBTV report. "This plan allows us to maintain critical operations while at the same time reducing our spending.”

The department announced it will delay most projects due to the $300 million budget shortfall, according to WBTV. In an audit released in early May, it was found that the department also had a shortfall in 2019 of $740 million. 

In the audit, Wood said the budget shortfalls could, in part, be due to a lack of leadership oversight in financial decisions, according to WBTV. Boyette agreed with the audit in his email and said he intends to make changes. 

“The current pandemic situation continues to impact our business significantly and as a result, difficult programmatic and personnel decisions must continue to occur,” he said in his email, according to WBTV. 

State Treasurer Dale Folwell is calling on Gov. Roy Cooper to replace Boyette after two years at the state department of exceeding its budget, according to WCNC

"The word 'trust' in the Highway Trust Fund implies that taxpayers, rating agencies, and bondholders trust that the money is being used properly,” Folwell told WNCN. "The lack of oversight at NCDOT is outrageous."

According to WNCN, Cooper's office responded to Fowell by claiming he is "the least effective state treasurer" and that what he says is "not credible," according to WNCN. 

"NCDOT is continuing to complete projects across the state while working within the guidelines set by the legislature in statute and navigating unprecedented costs from historic storms and flooding and the MAP Act Settlements," Cooper's office said in response to Fowell, according to WCNC. 

But some state officials don't see this as a reason for exceeding the budget both this fiscal year and last fiscal year. 

"It is sad to see Governor Cooper's chronic mismanagement of the NCDOT affect so many state employees during the COVID-19 pandemic." NCGOP Press Secretary Tim Wigginton said in a press release. 

To view the complete audit on last year's budget, visit North Carolina auditor's website

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