Alternative funding strategies for improving transportation facilities : a review of public private partnerships and regulatory methods.
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Alternative funding strategies for improving transportation facilities : a review of public private partnerships and regulatory methods.

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  • Abstract:
    Transportation agencies seem to be paying more and more for less and less. Project

    costs are outpacing budget estimates in many areas, while growth in demand continues

    to strain available capacity. Right of way costs in particular are consuming a growing

    amount of project funding, as are construction costs spurred by spikes in global demand

    for materials. These issues, along with public opposition to taxes and inadequate local

    measures for managing the transportation needs of new development, are contributing

    to transportation funding shortfalls and stalled projects in many states.

    Keeping pace with transportation demand is particularly challenging in high growth

    areas of states, like North Carolina, that maintain an extensive statewide network of

    roads and highways. As a result, many states are looking to encourage public private

    partnerships and to obtain developer contributions toward needed transportation

    improvements. This trend, however, has raised a variety of equity concerns. A major

    concern is how to achieve equity of contributions among private developers and how to

    assure that the public continues to pay its fair share toward transportation improvement


    To address these issues, the North Carolina Department of Transportation (NCDOT)

    retained the Center for Urban Transportation Research (CUTR) to assist the

    Department with exploring alternative funding strategies for improving transportation

    facilities. The study considered a variety of possibilities, including certain public

    private partnerships, alternative financing strategies, and regulatory methods. Specific

    topics examined were transportation corporations, transportation improvement districts,

    tax increment financing, impact fees, transportation concurrency and state programs for

    achieving fair share mitigation of transportation impacts. This report presents findings

    of this exploratory research effort.

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