Funding Arizona transportation

We’ve said it before and we’ll say it again … transportation is personal.

It’s not just about building and maintaining roads; transportation is what connects people, businesses and our communities. We think it’s pretty important and want to take a chance to briefly describe how transportation is funded in this state. The video above does a great job of explaining a complex topic. Here are a few of the basics…

Our transportation system is funded from two primary sources: the Federal Aid Highway Program and the Arizona Highway User Revenue Fund. The money for these funds comes from you.

Every time you pump gas, 18 cents per gallon goes to the federal fund and 19 cents goes to the state. This formula hasn’t changed since the early 1990s and doesn’t alter as gas prices go up and down …you pay the same amount whether gas is one dollar or five dollars a gallon.

The Federal Aid Highway Program is made up of more than 100 programs and is kind of a trust fund set up to make sure states spend money based on federal priorities. States build highway and transit projects before receiving partial reimbursement from the fund.

The Arizona Highway User Revenue Fund is a little more local …

Gas taxes, vehicle license fees and auto registration fees are part of what pay for this fund. Money from the AZ HURF is used for roads, but also supports other services. Portions of this fund go to counties, cities and towns for local programs.

You’ll see in the video above that people are keeping their cars longer and that vehicles are much more fuel efficient than they used to be. Both factors equal less money in the AZ HURF fund. Add on top of that, it costs more to maintain roads than it ever has…

So, how to pay for transportation in a way that makes everyone comfortable?

States and the federal government are working through that (you’ve probably read about it in the news). Just know that there are plenty of opportunities to have your opinions on the matter heard. 

We’ll continue to keep you updated and ask for your feedback!