STATUTORY FY 2008
REVENUE SOURCES - STATE DESCRIPTION CITATIONS ACTUAL
Highway User Revenue Fund ( HURF) The State of Arizona taxes motor fuels and collects a variety of fees and charges HURF funds are restricted to highway $ 1,344.5
relating to the registration and operation of motor vehicles on the public highways purposes by the Arizona Constitution, - includes VLT of $ 385.2
of the state. These collections include gasoline and use fuel taxes, motor carrier Article IX, Section 14. The distribution
fees, vehicle license tax, motor vehicle registration fees, and other miscellaneous of HURF funds are noted in ARS, Title 28,
fees. These revenues are deposited in the Arizona Highway User Revenue Fund Sections 6534- 6540.
( HURF) and are then distributed to the cities, towns, counties, and the State
Highway Fund. These funds represent the primary source of revenues available
to the Department for highway construction and improvements and other related
expenses.
Vehicle License Tax ( VLT) Owners of vehicles that are registered for operation on the highways of Arizona pay The VLT was originally imposed by an $ 859.0
the Vehicle License Tax ( VLT). It is an ad valorem tax based on the assessed value amendment to the Arizona Constitution,
of the vehicle. During the first 12 months of the life of the vehicle ( as determined by Article IX, Section 11. The collection and
its initial registration) the value of the vehicle is 60 percent of the manufacturer's base distribution of the VLT funds are noted in ARS,
retail price. During each succeeding year, the vehicle's value is depreciated at 16.25 Title 28, Sections 5801- 5808.
percent. Tax rates as of December 1, 2000 are $ 2.80 per $ 100 of assessed value for
the first 12 months and $ 2.89 per $ 100 thereafter. The minimum VLT is $ 10. The
VLT revenue is distributed to the HURF, Cities/ Towns and Counties. A small
amount of this revenue also is distributed to the State General Fund and State
Highway Fund.
Regional Area Road Fund ( RARF) In October 1985, the voters of Maricopa County approved the Maricopa County ARS, Title 28, Sections 6301- 6357 and Title 42, $ 380.1
- Maricopa Transportation Excise Tax Transportation Excise Tax in an amount up to ten percent of the State transaction Section 6105. In addition, the Department - $ 8.3 million
privilege tax rates. This tax is often referred to as the " 1/ 2 cent sales tax" and is must distribute $ 5 million in FY 1988 ( RPTA & MAG)
levied upon business activities in Maricopa County, including retail sales, contracting, ( adjusted annually by the GDP Deflator)
utilities, rental of real and personal property, restaurant and bar receipts, and other to the Regional Public Transportation
activities. The transportation excise tax revenues are deposited in the Maricopa Authority ( RPTA) per ARS, Title 28,
County Regional Area Road Fund ( RARF) which is administered by the Arizona Section 6305. Beginning July 1, 2005, these
Department of Transportation. These funds are the main source of funding for the funds will be split equally between the RPTA
Maricopa County Regional Freeway System through December 31, 2005. In November and the Maricopa Association of Governments
2004, Maricopa County voters approved Proposition 400 which extends the 1/ 2 cent ( MAG).
sales tax for another 20 years through December 31, 2025. The split of the revenues
beginning January 1, 2006 will be 56.2 percent for freeways and maintenance,
10.5 percent for arterial street improvements and 33.3 percent for regional bus service
and high capacity transit services such as light rail. The freeway, maintenance and
arterial street funds will be deposited into RARF while the transit funds will be deposited
into the public transportation fund.
Local Transportation Assistance Fund
LTAF I The Local Transportation Assistance Fund is funded from state lottery proceeds up to ARS, Title 5, Section 522 authorizes up to $ 23.0
$ 23 million per year. The funds are distributed to cities and towns on the basis of $ 23 million in state lottery funds to be
population. The funds can be used for public transportation and transportation deposited in to the LTAF I fund. ARS, Title
purposes depending on the jurisdiction's population. This fund is not administered by 28, Sections 8101- 8102 provides how the
the Arizona Department of Transportation. funds can be used by the jurisdictions.
LTAF II The 1998 Legislature passed HB 2565 to provide additional statewide transit and ARS, Title 5, Section 522 distributes the $ 10.1
transportation funding to incorporated cities and towns as well as the counties. multistate lottery and instant bingo game
The LTAF II funding is in the form of multistate lottery game and instant bingo game monies to LTAF II.
monies along with a portion of the State Highway Fund's Vehicle License Tax monies. ARS, Title 28, Sections 8101 and 8103 details
The Department administers the LTAF II and the State Treasurer's Office distributes the distribution of the grant money and the
the funds to the Regional Public Transportation Authority ( RPTA), Metropolitan restrictions for transit or transportation
ARIZONA DEPARTMENT OF TRANSPORTATION
FUNDING SOURCES AND AUTHORITIES
FY 2008
( Dollars in Millions)
Planning Organizations ( MPOs), and cities, towns and counties not represented by a purposes.
RPTA or MPO.
State Aviation Fund The State Aviation Fund receives monies from aviation gasoline taxes, sales of Under ARS Title 28, Section 8202, this $ 25.5
abandoned or seized aircraft, flight property taxes and the operation of certain airports. fund was established to build and maintain
State Aviation Fund monies are used to build and maintain airport facilities, including airport facilities.
the Grand Canyon Airport and the Aeronautics Department's operating budget.
Safety Enforcement and Transportation The Safety Enforcement and Transportation Infrastructure Fund was established to This fund is established under ARS, Title 28, $ 3.3
Infrastructure Fund provide revenue for the enforcement of vehicle safety requirements by the department Section 6547. Monies are deposited into the
of public safety, and the maintenance of transportation facilities, including roads, fund pursuant to section 28- 2324, 28- 2325,
streets and highways as approved by the Transportation Board within the twenty- five 28- 5739, 28- 5863 and 28- 5864.
miles of the border between Arizona and Mexico. This includes, as approved by the
Board, maintenance and construction of the transportation facilities in the CANAMEX
high priority corridor as defined in section 332 of the National System Designation
Act of 1995. May provide funds to the Arizona Office of Homeland Security, if
appropriated by the legislature, to improve traffic safety.
STATUTORY FY 08 Arizona FY 08 National
REVENUE SOURCES - FEDERAL DESCRIPTION CITATIONS Obligation Authority Apportionments
Interstate Maintenance ( IM) Provides funding for various projects on the Interstate System Projects including
resurfacing, restoration, and rehabilitation. Also, includes reconstruction of bridges,
interchanges, and over crossings along existing Interstate routes, design, acquisition of
right- of- way and preventive maintenance.
Public Law 109- 59, Public Law 110- 5 and 23
U. S. C. Section 104( b) ( 4)
$ 128.0 $ 4,944.1
National Highway System ( NH) Provides funding for construction, reconstruction, resurfacing, restoration, and
rehabilitation and safety improvements on segments of the National Highway System
( NHS).
Public Law 109- 59, Public Law 110- 5 and 23
U. S. C. Section 104( b) ( 1)
$ 174.1 $ 6,037.6
Surface Transportation Program ( STP) Provides state flexibility funds for construction, reconstruction, rehabilitation, resurfacing,
restoration and operational improvements.
Public Law 109- 59, Public Law 110- 5 and 23
U. S. C. Section 104( b) ( 3)
$ 138.8 $ 5,540.8
Enhancement ( TEA) Provides funding facilities such as pedestrian walkways and bicycle paths, acquisition of
scenic easements, restoration of scenic or historic sites, landscaping and other scenic
beautification.
Public Law 109- 59, Public Law 110- 5 and 23
U. S. C. Section 133( B)
$ 16.5 $ 817.8
Highway Safety Improvement Program
( HSIP)
Provides funding for rail- highway crossings and hazard elimination activities on any public
road.
Public Law 109- 59 and Public Law 110- 5 $ 33.8 $ 1,273.3
Bridge Program ( BR) Provides funding for replacement of a structurally deficient or functionally obsolete highway
bridge or rehabilitate the structural integrity of a bridge.
Public Law 109- 59 and 23 U. S. C. Section 144( e) $ 22.9 $ 4,224.5
Congestion Mitigation & Air Quality
Program ( CM)
Provides funds for various types of projects to improve air quality, by reducing
transportation related emissions in non- attainment and maintenance areas under the
Clean Air Act. Examples are transit improvements, travel demand management
strategies, traffic flow improvements and public fleet conversions to cleaner fuels.
Public Law 109- 59, Public Law 110- 5 and 23
U. S. C. Section 104 ( b) ( 2)
$ 35.2 $ 1,723.6
Planning & Research ( SPR) Provides funding for planning of future highway programs and local public transportation
systems, research, development and technology transfer activities necessary in
connection with the planning, design, construction, and maintenance of highway, public
transportation, and intermodal transportation systems.
Public Law 109- 59, Public Law 110- 5 and 23
U. S. C. Section 135
$ 12.6 N/ A
Metropolitan Planning Provides funding to Metropolitan Planning Organizations ( urbanized areas of more than
50,000 population) to carry out the transportation planning process.
Public Law 109- 59, Public Law 110- 5 and 23
U. S. C. Section 134
$ 5.3 $ 299.2
Equity Bonus Provides funding to States based on equity considerations. This program replaces the TEA-
21 minimum guarantee program. A portion of Equity Bonus funds are distributed to the IM,
NHS, Bridge, STP and CMAQ programs. Distribution amounts not available at this time.
Public Law 109- 59 and Public Law 110- 5 $ 74.5 $ 9,235.4
Recreation Trails Provides funds to develop and maintain recreational trails for motorized and nonmotorized
recreational trail users.
Public Law 109- 59 and Public Law 110- 5 $ 4.9 $ 79.2
Section 112 Projects Provides designated funding for specific projects ( commonly referred to as demonstration
projects) identified by Congress.
Public Law 108- 447 $ 0.0 $ 0.0
Re- Distribution ( Appr Adj) Provides for distribution of certain authorized funds. These funds that are authorized to be
appropriated for FY08 for Federal- aid highway programs, that will not be allocated to the
States and will not be available for obligation in FY08 due to the imposition of any
obligation limitation for such fiscal year, shall be distributed to the States. These funds will
be available for any purpose described in Section 133 ( b) of Title 23 U. S. C.
H. R. 3, 109th Congress and Public Law 109- 59
Section 1102( f)
$ 0.0
No Obligation Authority is
received with
redistributed
apportionments.
$ 165.2
Public Lands Highways ( Discretionary
funds)
Provides discretionary funding for transportation facilities on public roads serving Federal
and Indian lands. ( In FY 08, Arizona received $ 1.8 million for the Hoover Dam Bypass
Bridge project.)
23 U. S. C. Section 120 $ 1.8 N/ A
Coordinated Border Infrastructure Prog. Provides funding to improve the safe movement of motor vehicles at or across the land
border between the U. S. and Canada and the land border between the U. S. and Mexico.
Public Law 109- 59 and Public Law 110- 5 $ 8.9 $ 190.0
Safe Routes to School Program Provides funding to enable and encourage children to walk and bicycle to school. To make
walking and bicycling to school safe and more appealing. To facilitate planning and
improve safety..
Public Law 109- 59 and Public Law 110- 5 $ 2.8 $ 147.0
Indian Reservation Provides funding to Navajo Reservation for County maintained roads on reservation. Public Law 109- 59 $ 0.6 $ 1.7
FTA, Section 5310 ( Transit) Provides funds to transit projects for the elderly and people with disabilities. Funds are
allocated to each state on a formula basis and then the state allocates to eligible
recipients, that include public bodies and private, non- profit organizations. Capital costs,
as well as costs associated with contracted services, are eligible expenses.
49 U. S. C. Chapter 53 $ 2.3 $ 126.7
FTA, Section 5311 ( Transit) Provides funds to support costs associated with transportation in non- urbanized areas.
Funds are allocated to each state on a formula basis and then the state allocates to
eligible recipients, that include public bodies and private, non- profit organizations. Both
capital and operating costs are eligible expenses.
49 U. S. C. Chapter 53 $ 9.1 $ 492.4
STATUTORY FY 2008
FINANCING OPTIONS DESCRIPTION CITATIONS ACTUAL
HURF Bonds The State Transportation Board issues Highway User Revenue Bonds to accelerate The State Transportation Board has the $ 194.0
the construction of highway construction projects throughout Arizona. The pledged authority to issue HURF bonds per ARS,
revenues for the bond issues are the HURF funds deposited in the State Highway Title 28, Sections 7501- 7517.
Fund. The bonds are an obligation of the State Transportation Board and are not
obligations of the State of Arizona. They do not constitute a legal debt of the State,
and payment is not enforceable from any revenue other than HURF.
RARF Bonds The State Transportation Board issues Regional Area Road Fund Bonds ( RARF) to The State Transportation Board has the $ 370.0
accelerate the construction of controlled access facilities on the Maricopa Regional authority to issue RARF bonds per ARS,
Freeway System. The pledged revenues for the bond issues are the Maricopa County Title 28, Sections 7561- 7573.
Transportation Excise Tax revenues deposited in the RARF. The bonds are an
obligation of the State Transportation Board and are not obligations of the State of
Arizona. They do not constitute a legal debt of the State, and payment is not
enforceable from any revenue other than RARF. As of January 1, 2006, the State
Transportation Board has the authority to issue RARF bonds to accelerate arterial
street projects in the Regional Transportation Plan as a result of Proposition 400.
Proposition 400 is detailed in the Regional Area Road Fund section above.
Highway Expansion and Extension HELP was enacted on August 21, 1998. HELP is Arizona's State Infrastructure Bank, ARS Title 28, Sections 7671- 7677, authorized $ 10.0
Loan Program ( HELP) which provides loans and financial assistance for eligible highway projects in Arizona. the creation of HELP. Federal requirements Represents 2 loans
The HELP fund is capitalized with federal and state dollars as well as Board Funding are within the National Highway System
Obligations which provide the capital for loans. As borrowers repay principal and Designation Act of 1995.
interest on loans, the HELP fund is replenished and monies can be re- loaned. The Laws 1998, Chapter 263, HB 2488 created the
fund is a self- sustaining mechanism to accelerate critical transportation projects. HELP.
Grant Anticipation Notes ( GANs) Enacted into law in 1984, GANs offer a significant opportunity for accelerating Under ARS Title 28, Sections 7611- 7617 $ 68.0
projects throughout Arizona. GAN legislation enables the State to issue notes to pay passed in 1984.
the Federal share of projects in advance of the actual receipt of Federal highway
funding. Local communities may participate in paying the cost of interest on the notes.
Board Funding Obligations ( BFOs) The State Transportation Board has the authority to issue nonnegotiable Board Under ARS Title 28, Section 7678 $ 0.0
Funding Obligations ( BFOs) for purchase by the Arizona State Treasurer. The BFOs - HELP ($ 0)
were initially used to capitalize Arizona's State Infrastructure Bank, which allowed the - St. Hwy. Fund ($ 0)
Department and political subdivisions to apply for loans from the Highway Expansion
and Extension Loan Program ( HELP). Laws 2001, Chapter 238 ( HB 2636) provided
additional authority to the Board to issue BFOs for the State Highway Fund up to
$ 60 million in FY 2002 and FY 2004. Laws 2005, Chapter 150 ( HB2123) provided for
reissuance of BFOs from FY 2006 through FY 2020 with the final maturity no later than
FY 2024. Maximum outstanding is limited to $ 200 million.
Transportation Infrastructure This federal program consists of three distinct types of financial assistance, Per SAFETEA- LU, projects must qualify under $ 0.0
Finance and Innovation Act ( TIFIA) designated to address various project requirements throughout their life cycles. Title 23
Secure loans are direct federal loans to project sponsors offering flexible repayment
terms and providing combined construction and permanent financing of capital costs.
Loan guarantees provide full faith- and- credit guarantees by the federal government.
Federal government Stand- by Lines of Credit represent secondary sources of funding
in the form of contingent federal loans.