Arizona Department of Transportation—Projected Transportation Revenues Fall Short of Estimated Needs and the Arizona Legislature Should Consider a Task Force to Study Options for Addressing Transportation Revenue Needs

The Arizona Department of Transportation (Department) is responsible for planning, constructing, and maintaining the State’s highway infrastructure. However, the Department’s projected transportation revenues fall short of estimated transportation needs. The purchasing power of fuel tax revenues—the Department’s largest revenue source—has diminished over time, while, simultaneously, revenue collections have remained relatively flat since the 2000s. The Department estimates that state transportation system needs will total $88.9 billion for fiscal years 2010 through 2035, while projected transportation revenues will total $26.2 billion, a $62.2 billion shortfall. The Legislature should consider convening a task force to study and propose transportation funding options to address transportation revenue needs.