The North Carolina Ferry System is recognized as the second largest state-run ferry system in the country, but due to a history of cost overruns, the ferry system, by state code, is no longer allowed to go over budget when the current fiscal year ends June 30. It is now about $2 million short due to rising fuel costs, so the ferry system is simply slashing the number of ferry trips. The combination of increasing fuel costs and decreasing ferry trips from Hatteras to Ocracoke Island has had a palpable impact on Ocracoke's economy.
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