N.C. Go praises governor's budget

N.C. Go says Gov. Mike Easley's proposed budget is sound.

The coalition of transportation advocates praises proposals to phase out the transfer of money from the Highway Trust Fund, starting with a $25 million reduction the first year.

"In 1989, when the transfer originated it was a sensible proposal, helping to hold harmless funds previously directed to the General Fund," vice chairman Berry Jenkins said in a statement. "Since that time, the General Fund has grown while the Highway Trust Fund – and most other transportation funding – has remained virtually flat."

The group argues that transportation revenue should be spent on transportation projects.

On a separate issue, the coalition says the state should undo the cap on the state gas tax, which Easley has recommended leaving in place.