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Federal agency holds transportation funds for NC

RALEIGH -- The federal government is holding $25 million for mostly rural public transportation projects in North Carolina. The News & Observer of Raleigh reported Friday the Federal Transit Administration is withholding money because of problems in how the North Carolina Transportation Department oversees transit programs. State transit division chief Roberto Canales says North Carolina programs have not suffered financially yet. Canales says turnover in the transit staff and a department reorganization have hurt the ability to keep up with new federal regulations. Canales says the state agency has not necessarily done anything wrong. Federal officials cite North Carolina deficiencies in various areas. Most of the criticism is focused on the state's failure to submit a management plan for the money. (Copyright 2008 by The Associated Press. All Rights Reserved.)

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