TRG | The Bottom Line – 12/20

TRG recently visited Raleigh where we met with North Carolina DOT officials. Our meeting provided the opportunity to discuss the latest on IIJA, state-led funding initiatives, the 2025 construction outlook, and the ongoing impact of hurricane Helene. Officials were quick to point out that despite inflation, IIJA has helped supported a wide range of projects the state would not have otherwise been able to fund. To provide additional funding, the state is now in the third and final year of directing increasing amounts of sales tax revenue, topping out at 6%, to transportation. The transfers are expected to provide more than $600MM annually to the DOT. The state anticipates construction awards to be near $3B in FY’25, up from just $2B in FY’20. Finally, officials noted the DOT had spent $1.5B on storm repair since the early 2000s. Helene, however, is anticipated to cost more than $5B and take years to complete – if ever.