North Carolina’s Ferry Division can expect a thorough audit in the next six months. Members of the Joint Legislative Transportation Oversight Committee on Thursday recommended legislation for the short session that would have the state auditor conduct a financial audit of the division’s operations and spending.
Lawmakers are also seeking an evaluation of the division’s maintenance activities.
Sen. Bill Rabon (R-Brunswick) told an oversight committee that coastal North Carolina could not function without the ferry system, but the current funding model is not sustainable. (Photo taken from NCGA video stream)At an oversight committee in March, Sen. Bill Rabon (R-Brunswick) said coastal North Carolina could not function without the ferry division, but the current model is not working.
“There’s not a single lending institution in this world, nor a venture capital group in this world that would lend money to the business model that I have witnessed for 15 years from the Department of Transportation and the ferry division,” Rabon said.
Most of North Carolina’s ferries have been in service for 25 years or more, and it’s estimated that in the next 20 years most of the fleet will reach the end of its “useful life.”
Aaron Cornell of the Fiscal Research Division said of the 23 ferries in the current fleet only one vessel is currently scheduled for replacement in NCDOT’s Statewide Transportation Improvement Program.
“It’s the Silver Lake — the oldest vessel in the fleet,” Cornell said. “At the moment, I believe the projected cost on that was somewhere between $23 million and $35 million to replace it.”
Sen. Tom McInnis (R-Cumberland) said given the substantial cost, the state should look to Oregon and Washington state, which have ferry divisions, to borrow their design work and not try to reinvent the wheel.
“The boat only floats so good with so many cars on it,” McInnis said.
“The boat only floats so good with so many cars on it,” said Sen. Tom McInnis. McInnis says the state should borrow designs from other states in planning for its replacement ferries. (Photo courtesy of NCDOT)The North Carolina Ferry System serves an estimated 700,000 vehicles and over 1.5 million passengers annually. But the division faces many unique challenges including shifting channel conditions, diesel fuel prices, emergency vessel maintenance and repairs, and unfunded U.S. Coast Guard mandates.
The second oldest vessel in the fleet is named after North Carolina’s longest-serving governor. The Gov. James B Hunt is now more than 40-years-old and was listed in marginal condition in a 2024 study. The Fiscal Research Division projects that $750,000 is needed for a switchboard replacement on the Hunt ferry. NCDOT has noted that if the antiquated emergency generator switchboard should fail, the vessel could be out of service for up to a year while a replacement is found.
The price tag to replace all the ferries over a 20-year period would cost the state $552 million.
For the Manns Harbor Shipyard, $23 million is needed. That includes critical electrical upgrades. A 2024 inspection rated the overall condition of the infrastructure as “poor.”
The governor’s recommended 2025-27 budget called for $3 million in recurring funds for the ramps and gantry cranes throughout the ferry system network. The budget request noted that of the 24 ramps and gantries, “six need critical rehabilitation work, a further 10 need to be addressed soon, and the remaining need regular maintenance.”
Even with so many outstanding needs, Sen. Michael Lazzara said he would not support a House budget proposal to shore up the ferry capital fund by taking money from the North Carolina highway trust fund.
Sen. Michael Lazzara (R-Onslow) believes the ferry system may need to rely on more user fees to help replace outdated equipment. (Photo: NCGA video stream)“I’m a believer in user fees. You use it, you pay for it,” said the Onslow County Republican. “Just like our friends that need a solution in the Outer Banks, we just need to consider user fees and to find solutions to some of these very expensive, unattainable projects.”
Last year’s Senate appropriations bill expanded tolling to all ferry routes. If lawmakers adopt that idea in the short session, it’s estimated to generate additional $6.4 million for the division in the first year.
But that would only provide funding to replace the aging vessels. To offset the operational cost of the entire ferry division each year, the state would need to raise over $70 million.
“The tolls on that would have to be significantly higher. Or traffic through the system would have to be significantly higher to do that,” Cornell said.
Rep. Donnie Loftis (R-Gaston) worried if the tolls were perceived as being too expensive, some might reduce their use of the ferry system.
For now, the oversight committee is prepared to move forward with legislation that would turn the matter over to Auditor Dave Boliek. The bill that will emerge in the short session will have the auditor’s office evaluate the current route system and consider adjustments to reduce costs. A report with potential options to diversify revenue to recoup operating costs would be due to the General Assembly Oct. 1.
“It’s not a shipping industry, it’s a shipwreck,” Rabon said at the oversight committee’s March hearing. “This institution should do something to right that ship.”
The 2025 Senate Appropriations Bill included user fees for funding the replacement of the state’s ferries. Legislators adjourned without reaching a compromise with the House. (Graphic: Fiscal Research Division)Hence then, the article about could higher tolls be in the nc ferry system s future these nc lawmakers want a state audit first was published today ( ) and is available on NC news line ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( Could higher tolls be in the NC ferry system’s future? These NC lawmakers want a state audit first. )
Also on site :