NC leaders want to borrow $3.1 billion for school, road projects. Will it go on ballot?
North Carolina voters could be asked this year to approve borrowing $3.1 billion to pay for school and road construction projects.
Several state House legislative leaders, including House Speaker Tim Moore, filed legislation Tuesday to borrow $1.5 billion for road projects, $800 million for K-12 school projects, $600 million for the UNC System and $200 million for community colleges.
The proposed bond referendum comes as the state is facing a potential $5 billion shortfall due to lost tax revenue from the coronavirus pandemic. But backers of the Education and Transportation Bond Act of 2020 say now is the time “to invest in the future of our state’s economic connectivity and educational success.”
“This bond proposal builds on North Carolina’s substantial investments in every community to ensure our rapid population and job growth continue as we recover from the COVID-19 pandemic,” the bill’s sponsors said in a statement Tuesday.
In addition to Moore, the other sponsors of House Bill 1225 are Reps. Jeffrey Elmore, a Wilkes County Republican; John Torbett, a Gaston County Republican, and Michael Wray, a Northampton County Democrat.
Last year, Moore filed a bill to put a $1.9 billion statewide school construction bond referendum on the ballot. It passed the House but stalled in the Senate.
Last year’s school bond proposal
Instead of a bond referendum, the Republican-led General Assembly passed a state budget last year that they said called for committing $4.4 billion over the next 10 years for construction projects for K-12 schools, community colleges and universities. The money would come from the State Capital Infrastructure Fund and not from issuing construction bonds.
Democratic Gov. Roy Cooper vetoed the budget due to the lack of Medicaid expansion and what he said were insufficient raises for teachers.
Cooper originally called for a $3.9 billion school construction bond referendum to be put on the ballot. As a compromise, he has proposed asking voters to approve a smaller $3.5 billion bond referendum.
North Carolina school districts have identified $8 billion in construction needs.
The State Department of Transportation has less cash in its accounts than required under state law, meaning it can’t enter new contracts for supplies and equipment or begin new highway projects, the News & Observer has reported.
DOT, which would get the $1.5 billion in road money, is furloughing thousands of employees due to a drop in revenue. The state could see a $774 million drop in the Highway Fund and Highway Trust Fund.
DOT said Tuesday that the agency is reviewing the details of the legislation and will follow it as it moves through the legislative process.
