HIGHWAY FUNDING IN ARIZONA Presentation to Government Finance Officers Association March 7, 2007

MAJOR HIGHWAY FUNDING SOURCES

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Highway User Revenue Funds (HURF)

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Federal Highway Funds

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Transportation Excise Tax Funds

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Highway Expansion & Extension Loan Program (HELP)

HIGHWAY USER REVENUE FUND

SOURCES AND DISTRIBUTION OF FUNDS FY 2006 TOTAL: $1,331.6 Million SOURCES

Registration $158.8

11.9% Other $55.9

4.2% Fuel $702.5

52.8%

DISTRIBUTION

Economic Strength Fund $1 - 0.1% DPS $66.7

5.0% MVD $0.6

0.0% Counties $240.5

18.1% VLT $373.9

28.1% ADOT $539.8

40.5% Motor Carrier $40.5

3.0% Cities $386.2

29.0% NOTE: ADOT 15.2% represents ADOT’s allocation of HURF for MAG and PAG regional projects.

ADOT 15.2% $96.8

7.3%

VEHICLE LICENSE TAX DISTRIBUTION

FY 2006 Vehicle License Tax $832.0 Million /1 HURF 44.99% $373.9 Million /2 Counties (Highway Purposes) 5.83% $48.7 Million State Highway Fund 0.0% $0.1 Million County Gen. Fund 24.59% $204.2 Million Cities/Towns Fund 24.59% $204.2 Million State General Fund (School Aid) 0.0% $0.6 Million State Highway Fund 0.0% $0.3 Million /3

NOTES: 1. The distribution percentage for each recipient based on statutory distribution. The State General Fund and State Highway Fund receive a share of the VLT only from alternative fuel vehicles, rental vehicles and privately owned vehicles used as a school bus, ambulance or fire fighting service. The other VLT recipients also receive a small amount of VLT from these vehicles. 2. Laws 2005, Chapter 306 (SB 1119) distributes 1.51% of the State Highway Fund share of HURF VLT to the DPS Parity Compensation Fund.

3. $13.6 million from the State Highway Fund and the $0.3 million from the State Highway Fund share of VLT was paid to the MVD Third Parties per HB 2026 and HB 2055 from the 1998 and 2001 legislative sessions, respectively in FY 2006. The reimbursements were previously paid solely from the State Highway Fund share of VLT until it was severely reduced from the VLT rate reductions.

HIGHWAY USER REVENUE FUND

REVENUES AND DISTRIBUTIONS Revenues from: $.18 Gas Tax $.26 Use Fuel Tax (7/00) Vehicle Registration Motor Carrier Fee 44.99% of VLT (12/00) Other Distribution breakdown: 50.5% to State Highway Fund 27.5% to Cities & Towns 3% to Cities over 300,000 19% to Counties Distribution formulas: 7.67% to Maricopa and Pima Counties for Controlled Access with a 75% and 25% split respectively. (Statutory 12.6% & Special 2.6% money) 4 2.83% to ADOT Discretionary.

One half distributed on basis of incorporated population and one half on the basis of county origin of gasoline sales and city or town population within each county.

Distributed to Phoenix, Tucson and Mesa based on population.

Distributed based on a portion of gasoline distribution and diesel fuel consumption and on a portion of unincorporated population. The split is as follows: 85/15 in FY 1997, 80/20 in FY 1998, 76/24 in FY 1999, and 72/28 in FY 2000 and thereafter)

HIGHWAY USER REVENUE FUND FY 2006

REVENUES AND DISTRIBUTIONS (Dollars in Millions)

NOTES: /1. Appropriation to MVD for vehicle registration enforcement program ($383,300) and 5 FTE positions for 3 rd Party program ($250,000).

/2. The 12.6% (statutory) and 2.6% (non-statutory) allocations from the State Highway Fund share of HURF distributions.

/3. With the elimination of the VLT distribution to the state highway fund, a distribution is made from the state highway fund to MVD Third Parties for the collection of VLT.

/4. Per Laws 2005, Chapter 306 (SB 1119), 1.51 percent of the state highway fund share of HURF VLT is distributed to the DPS Parity Compensation Fund.

Counties 19%

Estimated Distribution State Obligation Authority Maricopa Obligation Authority Pima Urban Obligation Authority.

Other Obligation Authority Total

FEDERAL FUNDING SOURCES Federal FY 2006

Obligation Authority INTERSTATE MAINTENANCE 19.3%

($601.9 Million)

OTHER 23.2% BRIDGE 2.7% EQUITY BONUS 12.2% SURFACE TRANSPORTATION 21.4%

$448.5

89.7

23.1

40.6

$601.9

NATIONAL HIGHWAY SYSTEM 21.2% Notes: 1. Other includes CM, SPR, HSIP, REC TRL, CBI, SRTS,HPP and redistributed.

2. Does not include Federal Lands or Special Projects.

FEDERAL HIGHWAY FUNDS

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High Priority Project MAG $4.5M * PAG $7.7M * All Others $12.2M * * Note: Represents two years of apportionments Highway Planning MAG $.75M

PAG $.35M

All Others $.93M Metropolitan Planning MAG $4.0M

PAG $1.1M All Others $0.5M

FEDERAL HIGHWAY FUNDS (Continued)

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MAG and PAG Urban Surface Transportation Program (STP)

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MAG $43.3M

PAG $10.7M

Congestion Mitigation and Air Quality (CMAQ) MAG $41.5M

Bridge Replacement Program Total $6.1M

Highway Safety Improvement Program Total $6.8M

FEDERAL HIGHWAY FUNDS (Continued)

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STP Enhancement Program Total $8.0M

STP State Discretionary MAG $2.5M

PAG $5.4M All Others $9.2M

MPO/COG ASSIGNMENTS

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Arnold Burnham Dianne Kresich Sandra Gilbert Charlene Fitzgerald James Zumpf PAG MAG & CAAG CYMPO SEAGO, YMPO, WACOG FMPO, NACOG

TRANSPORATION EXCISE TAX

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State law allows any county to enact a transportation excise tax, with a vote of the electorate Maximum amount is 10 percent of the State’s base rate Funds can be used for any transportation purpose Counties with a transportation excise tax 1. Maricopa 2. Pima 3. Pinal 4. Gila

HIGHWAY EXPANSION & EXTENSION LOAN PROGRAM (HELP)

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Revolving loan program established in 1996 To date, HELP fund has made 55 loans totaling almost $600 million Loan parameters:

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Can lend to ADOT, cities, counties and Indian tribes Project must be on Federal aid system and: - Included in Board’s five-year program or - Included in local TIP On average, about $80 - $100 million of loan capacity each year Board allocation guideline for distribution of HELP capacity for FY 2006-10: - MAG Region - PAG Region - TOC Region 37% 13% 50%

QUESTIONS?

For additional information, please visit www.azdot.gov/inside_adot/fms/index.asp