Panel OKs $660M North Carolina transportation funding fix

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Traffic on College Road in Wilmington on June 29, 2018. (Photo: WWAY)

RALEIGH, NC (AP) — A state House panel supports a $660 million fix for cash-flow problems at North Carolina’s Department of Transportation attributed to disaster recovery spending and litigation losses. But the chamber’s top budget-writers aren’t expected to support it.

WRAL-TV reports the measure approved on Wednesday by a transportation spending subcommittee would give $360 million to DOT to cover legal awards after courts struck down a law that previously kept land costs for highways low. State government also would loan $300 million to DOT, with full repayment by 2025 through federal disaster reimbursements.

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Low cash levels forced DOT this year to suspend hundreds of projects.

House budget chairman Rep. Chuck McGrady opposes the measure — especially the cash advance — and expects colleagues will, too. McGrady says a separate proposal is being assembled.