South North Carolina News

A new state audit said that the North Carolina Department of Transportation overspent by approximately $39 million on pay raises for the fiscal year of 2018-19.

State Auditor Beth Wood accused the Transportation Department of not obeying state laws that limit salary adjustments to no more than 2% of its payroll budget, and only allows certain salary adjustments for employees who voluntarily relinquish longevity pay and career status, The Center Square reported on July 9.

The audit claimed that by allowing their employees to retain all of the benefits and protections of state employment even though they received compensation, the Transportation Department gave its employees an unfair advantage over other state employees that were compensated in accordance with state compensation rules.

NCDOT Secretary Eric Boyette responds that Wood misinterpreted the law, which is part of a pilot program to helps retain state employees.

Boyette interprets the law as authorizing the disbursement of 2% of the Transportation Department's total funds and reserves to issue pat increases, not just the payroll expenses fund.

He also said that the purpose of the pilot program is to make salaries competitive with the private sector and that pay raises would be “superfluous” if they were “contingent” on employees giving up career status or longevity pay.

This is the second audit in just a matter of months that claims that the NCDOT’s spending was over budget. Wood’s office reported in May that the agency spent $742 million over its $5.9 billion spending limit for the fiscal year 2019 and maxed out its cash balances. A bill was passed last month by the General Assembly that increases financial oversight of NCDOT.