(The Center Square) – Appropriation of $700 million for Hurricane Helene relief in North Carolina’s state budget is expected to ease a strain and potentially avert program cuts a state audit says could happen in the maintenance program cuts in the Department of Transportation.
Released before the state budget votes began on Wednesday, the independent audit says the Transportation Department identified 9,400 sites where roads and bridges were damaged by the September 2024 storm. Thirty-nine counties under federal disaster declaration are home to 40% of the state’s 11.2 million population.
Saturday will mark the beginning of the 93rd week of recovery.
The fiscal year 2025 audit says in part, “NC Session Law 2025-26 repurposed existing funds totaling $164.2 million for the 2025-26 fiscal year and directed the department to use all future credit balance funds for activities related to recovery from Hurricane Helene until recovery is completed, Absent a special appropriation of funds from the state and/or increased federal money, program cuts will be needed. It is expected that most of these cuts will come from maintenance programs.”
The audit notes most federal money will be in the form of reimbursement after incurred cost.
The analysis said a December 2024 report from the Office of State Budget and Management projected $6 billion in repair and replacement for highways and bridges. It also tacked on, based on previous major natural disasters, an inflation factor of 20% for constructions costs.
Expenditures related to Hurricane Helene, as of June 30, 2025, were $909.2 million, the audit said, with federal funds received totaling approximately $182.1 million.
In his message to the governor, General Assembly leaders, and Transportation Secretary Daniel Johnson, first-term Republican state Auditor Dave Boliek said governmental fund expenditures were $8.6 billion in fiscal year 2025 with $5.4 billion of that for capital outlay. Salaries and benefits cost the department $1 billion.
