Arizona Sports and Tourism Authority—Insufficient Tourism Revenues May Affect the Authority’s Ability to Fully Fund Statutorily Designated Priorities, and the Authority Should Improve Its Facility Management Agreement and Capital Improvement Practices

The Arizona Sports and Tourism Authority (Authority) receives tourism revenues from a Maricopa County hotel bed tax and car rental surcharge, and revenues from its multipurpose facility—the University of Phoenix Stadium (facility)—including event revenues, rental payments, and some sales tax revenues. In fiscal years 2011 through 2014, the Authority’s tourism revenues were insufficient to fully fund all the purposes prescribed by statute. The Authority may also face challenges in funding its future operations. However, the Authority has options for improving its facility management agreement, which could help improve funding for future operations. Finally, the Authority should improve its planning and budgeting for capital improvements to help ensure it adequately maintains and improves the facility.