In August, The Assembly reported that the Illinois-based company RedSpeed had donated $220,000 to legislative Republicans’ building funds—circumventing a statutory ban on corporate contributions to lawmakers—shortly before the General Assembly passed a bill that could make the company millions of dollars.
Could might be the operative word in that sentence.
RedSpeed, which operates in five other states, runs speed-detection cameras that automatically issue citations to speeders in school zones. The company collects a percentage of the revenue its cameras generate—in Florida and Georgia, about 21 percent to 25 percent, according to media reports and a review of RedSpeed’s agreements with local governments.
In a late July LinkedIn post, a RedSpeed vice president said the company had collected nearly $32 million in fines in Florida, where it operates in 35 jurisdictions, during the first seven months of 2025. That appears to equate to just under $7 million in revenue for RedSpeed.
On the surface, North Carolina’s law seemed like it might prove more lucrative: It appears to mandate tickets for drivers going even 1 mph over the limit (in Florida, drivers have to go at least 10 mph over). It also sets the penalty at $250 (more than double the amount in Florida and Georgia).
More citations with higher penalties could lead to greater profits. But there’s a potential hiccup.
The law authorizes municipalities and counties to pass ordinances allowing speed-detection cameras and to enter into agreements with vendors like RedSpeed. But they don’t have to make those deals, and municipalities have no financial incentive to do so.
Under the state constitution, revenues from fines go to schools. Towns and cities, however, aren’t responsible for funding school systems. The General Assembly and counties are.
Municipalities’ share of the speed-camera proceeds can only cover the cost of collecting the fines. The state Supreme Court has ruled, in a case involving red-light cameras, that they can’t “profit from the arrangement or use the fines to pad [their] general operating budget.”
The lack of a financial benefit doesn’t mean that no municipality will use speed cameras. Some “cities may want to install such cameras as safety measures,” said Shea Denning, a professor in the University of North Carolina at Chapel Hill School of Government and an expert on the state’s motor vehicle laws. Speed cameras have been shown to reduce roadway fatalities and serious injuries, Denning added.
Counties, on the other hand, have a financial motive. But they could only place the cameras in unincorporated areas, and they’ll need permission from the state Department of Transportation.
That’s because, unlike in most states, counties don’t control roads in North Carolina. The state DOT owns about three-quarters of the state’s roads, including highways. Towns and cities usually maintain most roads within their borders. Municipalities also need DOT approval to place the cameras along DOT-run roads within their limits.
The law took effect on October 1. By publication, the DOT had not responded to The Assembly’s questions about whether any local government had asked permission to set up speed-detection cameras.
Spokespeople for the N.C. League of Municipalities and the N.C. Association of County Commissioners said last week that they were unaware of any local government that has passed an ordinance authorizing speed cameras.
RedSpeed’s chief executive officer, vice president, and other representatives did not respond to emails asking if the company had entered into an agreement or was negotiating with any local governments in North Carolina.
If local governments are reluctant to jump on board, the state’s tumultuous experience with red-light cameras might have something to do with it. Last year, Raleigh ended its two-decade-old red-light-camera program, citing a deluge of litigation in the state’s other municipalities. Fayetteville, Greenville, and Wilmington have also eliminated their programs.
The only North Carolina municipality currently using red-light cameras is Greensboro, The News & Observer’s Open Source newsletter reported in August.