Why Hatteras-Ocracoke ferry tolls are a bad idea

They’re back!

The N.C. General Assembly Senate budget proposal includes tolling the Hatteras/Ocracoke ferry.

A challenge when writing a monthly editorial for a breaking news topic is that the issue may have been resolved by the time it gets read.

So, we should write from that perspective, making the points worth noting.

The latest attempt to start ferry tolls on the Hatteras Inlet runs is a good example.

“The Ocracoke Civic and Business Association, as well as stakeholders across the region, put their heads together and brought up important points that should be addressed when opposing the ferry tolls.”

The above quotation was not from a news story in the past month or so. It was from a news report in the Ocracoke Observer in November 2015. But the issue of tolling the ferry system goes back even farther, a context worth noting at the budget battle between the House and Senate budget proposals heat up.

Since 2011, Ocracoke residents have successfully fought off charging a fee to take the Hatteras Inlet ferry. This was accomplished, in large part, due to the citizens on Ocracoke and elsewhere who saw the folly of the proposal and contacted members of the General Assembly.

Others joined the fray, especially the Hyde County commissioners and the county manager, including using lobbyists that helped thwart of what in the eyes of many, could create an economic disaster for Ocracoke.

The recent N.C. Senate proposal to implement tolls on the Hatteras/Ocracoke ferry service for the 2025-2026 budget cycle has reignited a contentious issue that, again, has major repercussions for Ocracoke.

The N.C. House’s budget did not propose enacting or increasing tolls on any of the routes and now the two chambers are trying to come up with a budget that both can agree on.

Those negotiations may go well into the summer before a final budget is agreed on.

As the North Carolina Senate budget proposal includes tolling this vital route, it’s essential to examine why ferry tolls could be detrimental to residents, the local economy and the hundreds of thousands visitors to the island.

One member of the N.C. General Assembly who has made heroic efforts to keep the ferries running without fees is Sen. Bobby Hanig (R-Currituck).

He proposed an amendment during floor debate on the budget that would have deleted the toll proposal, but it failed on a 24-23 vote. He vowed to continue his efforts to ensure these tolls are not in the final budget.

Our two regional General Assembly representatives, Sen. Norman Sanderson (R-Carteret) and Rep. Keith Kidwell, (R-Beaufort) are working to keep the tolls from being implemented.

Back in 2011, a proposed fee of $10 per trip on the Hatteras ferry was on the table.

Fast forward to today, the proposed toll has increased to $20 for vehicles under 20 feet and $40 for larger vehicles. This sharp rise raises serious questions about the number of “day tripper” visitors who contribute significantly to Ocracoke’s economy.

Additionally, the Senate bill also proposes that the Pamlico Sound ferries (Ocracoke/Swan Quarter/Cedar Island), which already have a toll of $15 each way, would increase to $30.

If these tolls are enacted, local businesses, the restaurants and the shops that rely on these visitors may face a significant downturn if vacationers deem it too expensive to make the long trip from the Nags Head area of the upper Outer Banks.

With the current economic uncertainty, including rising costs from tariffs, businesses are already struggling. Adding ferry tolls could tip the scales toward economic disaster for this year’s seasonal tourism and onward.

Implementing tolls also raises logistical and administrative challenges. New costly toll booths and expensive fee processing software would be necessary at both the Hatteras and Ocracoke loading areas.

On Hatteras Island, this could mean vehicles backing up into Hatteras village, disrupting daily life and further complicating access to the ferry.

On Ocracoke, there are no stacking lanes due to erosion, so vehicles already line up for long distances on NC 12 during peak times.

Additionally, the costs associated with staffing are significant. The ferries operate from 4:30 a.m. until midnight, which would require an additional workforce to manage toll collections.

This could subtract a substantial amount of money intended to be added to the ferry capital fund.

A critical concern and a reason for putting the skids on this tolling is the lack of public hearings and, if there are comprehensive studies regarding toll implementation, they are not a public record.

A thorough examination of the potential loss of visitors on the local economy is necessary before implementing these tolls. And, as noted above, an assessment of the costs associated with establishing the tolling infrastructure and the costs of staffing the long hours.

There is no doubt that the N.C. Ferry Division needs more robust funding. It has a minuscule budget within the rest of the NCDOT budget.

Moreover, this is an ancient fleet with some boats more than 45 years old.

These old boats require far more maintenance and repair than ones that are 15 years old, kind of like us humans.

To address these concerns, the following actions are recommended:

1. Remove Ferry Toll Provisions: Although they are in the Senate budget, they are not in the House proposal. The two chambers will iron out the differences in the two budget proposals in conference that will involve, using the vernacular, a lot of horse trading, which could extend well into the summer.
2.  The North Carolina House of Representatives should hang tough and convince their senate colleagues to eliminate the tolling provisions from their budget proposal when they go to conference. Support the Governor’s Budget for the NC Ferry Division: Advocate for a total budget allocation of $78.8 million for the ferry division to ensure critical maintenance and continued service without tolls. This funding would support vessel maintenance, including the necessary overhauls for aging ferries.
3. Toll Waivers for Essential Services: Request exemptions from tolls for public safety and critical service providers, such as law enforcement, EMS, and utility services, to ensure they can continue serving the island community effectively.
4. Support the Governor’s Budget for the NC Ferry Division: Advocate for a total budget allocation of $78.8 million to ensure maintenance (including necessary overhauls for aging ferries) and continued service without tolls.

The ferry route serves as more than just a means of transportation; it is a vital lifeline that supports the economic and social fabric of the Outer Banks.

Hyde County Manager Kris Cahoon Noble encouraged islanders to contact Ocracoke representatives. 

“Timing is of the essence,” she said at the OCBA meeting on May 20. “We need to create a groundswell of opposition.” 

To make your concerns known, please call and write to the members of the N.C. Legislature below.