Introduction to the Phoenix Urban Area Regional Freeway System

On October 8, 1985, the voters in Maricopa County approved Proposition 300 to establish a one-half cent transportation excise tax (commonly called the one-half cent sales tax) for construction of controlled access highways. These controlled access facilities must be on the Regional Transportation Plan of the Maricopa Association of Governments (MAG) and the State Highway System. The facilities are to be constructed and maintained by the Arizona Department of Transportation (ADOT). In accordance with A.R.S. Section 28-6538, ADOT allocates a portion of State Highway User Revenue Funds on controlled access highways in Maricopa County. Also, federal funds can be used in connection with construction of certain segments of the controlled access system.

On November 8, 1994, voters of Maricopa County defeated Proposition 400 that proposed extension of the current one-half cent transportation excise tax an additional ten years (through 2016) and imposed a new one-half cent transportation excise tax through 2016. Proceeds of the new tax would have been divided equally for freeway and public transportation purposes.

On December 13, 1994, former Governor Symington presented a plan to complete the Regional Freeway System. The plan included additional funding from higher sales tax forecasts, a greater allocation of MAG Federal funds earmarked for freeways and ADOT generated budget savings. The plan further recommended deletion of certain corridors and corridor segments, proposed higher bonding levels and included corridor scope reductions to lighting, landscaping, structure widths and freeway lanes.

On November 20, 1996, the MAG Regional Council approved a Freeway / Expressway Plan for the Lifecycle Program, FY98 - 2006, that: advanced projects, added a Grand Avenue Improvement Project, added a project to complete the I-10 / Santan / South Mountain TI, west 1/2, and added a "Set a Side" project for a South Mountain expressway in lieu of a Toll Road (privatization project).

Also on November 20, 1996, the MAG Regional Council identified funding for a Long Range Plan, FY2007 - 2015. Previously Unfunded Red Mountain, Santan, and Sky Harbor segments were prioritized, and a Grand Avenue Improvement Project was added and prioritized.

In April 1999, the State Legislature passed SB1201 which provided State Infrastructure Bank (SIB) funding to assist in financing the acceleration of the Regional Freeway Program by the end of 2007. Governor Jane Dee Hull, ADOT and MAG have prepared plans to complete the Regional Freeway System by the end of 2007 using innovative financing alternatives. The "2007 Acceleration Plan" is being developed in conjnction with Maricopa Association of Governments and other local agencies. The MAG Area Lifecycle Construction Program (FY 2000-06) has been amended to reflect the accleration of projects in accordance with the plan. The program will now reflect the FY 2000-07 program years.

The concept of a Lifecycle Program refers to a programming approach that includes the usual five year programming period and also recognizes the need to forecast and allocate funds through the full life of major funding sources. As a result, the enclosed Regional Freeway Program covers the full period of the Proposition 300 one-half cent tax extending through fiscal year 2006. In this manner, the resources for construction of the Regional Freeway System can be fully managed both from a short and long term perspective, ensuring that the maximum benefit is returned to the taxpayer. Additionally, the ADOT Lifecycle Program reflects a fiscal balance between anticipated revenues and expenditures. Construction of the Regional Freeway Program has been scheduled on that basis. This management tool ensures that both ADOT and MAG maintain a realistic planning and construction schedule predicated upon funding, and provides periodic reports to the public and other governmental agencies.

The current program extends the Lifecycle Program period from 2006 to 2007 to accommodate the plan to accelerate completion of the Regional Freeway System by the end of 2007. In previous program years, projects that were projected to be funded beyond the lifecycle period (2000-2006) were shown in a Long Range Plan. This year's Lifecycle Program no longer shows projects as part of a long range plan, since most of the proposed South Mountain Freeway are designed as unfunded. The 2007 Accelerated Program plan is dependent on the following assumptions:

Program Scheduling Assumptions:

• Project delivery system improved
• Early Completion General Plans
• Early acquisition of Right of Way
• Completion of Environmental Corridor Studies
• No major design changes after 30% plans are completed
• Support of major stakeholders (cities, county, utility companies & federal agencies)
• Availability of Design-Build contracting

Program Financing Assumptions:

• $200 million new State Infrastructure Bank (SIB) / Highway Expansion and Extension Loan Program (HELP)
• $250 million of Grant Anticipation Notes (GAN)
• Continued funding from ADOT statewide program
• Continued ADOT and MAG federal aid funding
• Future Vehicle License Tax initiatives will be revenue neutral
• Interest rates are stable
• Project costs maintained within program inflation contingency

The Lifecycle Program for the Regional Freeway System provides an effective management tool and a comprehensive view of planned construction. This philosophy will assist in maximizing transportation dollars and provide a focus on future transportation needs.

Our Valley Freeway System is part of the 2004 voter-approved Regional Transportation Plan. We are working hard with our transit partners to implement the voters’ vision and are committed to quality, safety, open communication with our neighbors, and minimal inconvenience to the traveling public.