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North Carolina Enacts P.A.V.E. Act for Transit Enhancements

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Illustration showing advanced transit infrastructure in Charlotte, including buses, rail services, and bike lanes.

News Summary

Governor Josh Stein has signed the P.A.V.E. Act into law, allowing Mecklenburg County voters to decide on a one-cent sales tax increase for transit projects. This legislation aims to generate $19.4 billion over 30 years for essential infrastructure, including rail and bus service enhancements. The act received bipartisan support and establishes an independent transit authority to manage projects effectively. With projections of a 50% population increase by 2050, the P.A.V.E. Act is seen as a strategic move to address future transportation challenges in Charlotte.

Charlotte, North Carolina — Governor Josh Stein has officially signed into law House Bill 948, known as the Projects for Advancing Vehicle-Infrastructure Enhancements (P.A.V.E.) Act. This new legislation empowers voters in Mecklenburg County to decide on a one-cent sales tax increase aimed at funding vital transit projects in the growing Charlotte region. The proposed sales tax referendum will appear on the ballot in November.

The P.A.V.E. Act is designed to generate substantial funding for ambitious transit initiatives, which include extending rail service to Iredell County and expanding bus services in Matthews. If approved, the sales tax increase could yield an estimated $19.4 billion over the next three decades, with 60% of the revenue directed toward a dedicated transportation authority for various transit projects. The remaining 40% will be allocated to local municipalities to support essential road projects, including infrastructure improvements for bike lanes and street lighting.

The legislation has been in development for several years and initially encountered resistance from state Republican lawmakers. However, it has garnered bipartisan support, particularly after Rep. Tricia Cotham, who switched her political affiliation from Democrat to Republican earlier in 2023, took on the role of sponsoring the bill.

Under the P.A.V.E. Act, an independent transit authority comprising 27 members will be formed to oversee the planned funding and related projects. This authority is intended to ensure accountability and effective management of the investments made in local transit systems.

Significant collaboration among local, county, and state officials has been noted as key to advancing this initiative over the past five years. Business leaders, including those from various sectors in Charlotte, have underscored the urgency of infrastructure investment. Projections suggest that the region’s population could increase by 50% by the year 2050, with approximately 117 people moving to the area each day. The P.A.V.E. Act is thus viewed as a strategic measure to address the impending challenges of this population growth.

Local business leaders have expressed optimism regarding the economic implications of the P.A.V.E. Act. They consider it a crucial development for bolstering infrastructure and consequently enhancing economic opportunities in the region. Comments from business executives underscore the notion that this move represents a “game-changing moment” for Charlotte’s economic prospects and future growth.

Governor Stein has characterized the P.A.V.E. Act as a wise investment, vital to supporting the increasing populations and improving access to transit options across the region. The effective implementation of this act is expected to create numerous jobs while also advancing overall economic development in the Charlotte area.

The P.A.V.E. Act marks a significant step forward in efforts to enhance transportation access in Charlotte, meeting the needs of a rapidly growing community and providing solutions to current transit challenges. As communities await the outcome of the upcoming ballot, the focus now shifts to building a sustainable transportation framework that can accommodate the expanding population and contribute to the region’s comprehensive development strategies.

Deeper Dive: News & Info About This Topic

HERE Resources

Legislation Proposes Sales Tax for Charlotte Transit Projects
Charlotte Transit Bill Revamped to Boost Rail Funding

Additional Resources

HERE Charlotte
Author: HERE Charlotte

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