We spent how much on what? WRAL Investigates spending on projects with little, if anything, to show for it

State and local governments spend hundreds of millions of dollars each year on studies, research projects and consultants.

2024-07-18

Sometimes, all that money and work pays off with a project that provides new services, new revenue or new ways to get around. But that’s not always the case.

WRAL Investigates went through years of records, previous reporting and current government projects to answer one question: “We spent how much on what?”

This year, the North Carolina General Assembly provided another $350 million in funding to the Global TransPark, an economic development project east of Raleigh. But that’s a drop in the bucket compared to how much taxpayer money has gone the project since it’s inception in the form of state funding and grants. And that $350 million comes with 30 years of doubt.

Back in the early 1990s, the state spent nearly $500,000 to study the idea of creating a massive economic driver at the Kinston Regional JetPort in Lenoir County. The plan included air cargo, manufacturing and more. The study predicted by the year 2010, the Global TransPark would create more than 100,000 jobs and have an economic impact of $3.8 billion. The GTP's most recent numbers show just 2,441 jobs and a $661-million economic impact.

“I guess you can argue the vision of the Global TransPark never really occurred," North Carolina State University economist Mike Walden told WRAL Investigates.

WRAL Investigates reached out to Walden after our research found an article he wrote in the early stages of the project. Back then, he called the idea of spending taxpayer dollars on the GTP “risky.”

“This gets to the philosophy of what government should do and shouldn’t do,” Walden said.

Walden raised questions back then—and still—about government investment in the project. He argues if it was going to be a big moneymaker, private companies or firms would have seized the opportunity. They didn’t. But our lawmakers are still trying, possibly for selfish reasons, Walden said.

"We’re going to put more money in it and we want to make it a success and if it’s not in some form, it’s going to look bad for us," Walden said.

While the GTP has certainly not lived up to its billing, it is providing some results. And there are new ideas on the table to recreate it to make sure those investments finally pay off. That’s better than what Durham and Orange County taxpayers can hope for. They footed the bill for a more than $150 million study to bring light rail to the Triangle. All of that money is gone. And the light rail got close to rolling.

“My goal is just make sure that never happens again,” Durham Mayor Leonardo Williams said.

The project collapsed before Williams was elected as a Durham councilor. But Williams was a member when representatives from GoTriangle came to the city council to explain what went wrong and where all that money went.

Williams says the whole experience was a learning lesson he now lives by.

“There won’t be significant investments you know, under my watch, if I’m in charge with any uncertainty [in a project],” Williams said.

Williams still supports light rail. He adds there is a bit of “catch 22” with some projects, because studies are required to get federal funding.

To this day, Williams still has questions.

“This was a mistake and that happens," Williams said. "There must be grace as well because no one is perfect, but this is also a lot of money.”

WRAL Investigates is keeping track of a couple of newer gambles we found while going through databases of current projects and requests for proposals.

In Chapel Hill, at a time with rising out-of-state tuition, the University of North Carolina-Chapel Hil is spending $217,000 for recommendations on a new location for the Dean Dome.

UNC told WRAL News on Sunday that while out-of-state tuition costs are increasing, it is "still far below that of our peers."

Durham is looking for proposals for someone to teach teens about shoe making and design.

While those projects are on a small scale compared to GTP and Light Rail, Williams says protecting every penny of taxpayer dollars is important, “Anytime we make an investment and the investment goes awry, it is upsetting."