Proposition 400 Extension Tasks Management Committee September 11, 2019 © 2019, All Rights Reserved

Home , Extension (semantics)

1. Introduction and Schedule Overview 2. Policy Overview . Current funding policy framework . Funding policy considerations

. Specific projects provided certainty, commitment to long- range projects . Reliant on accuracy for 20+ year projects (i.e., revenues, costs, market conditions, needs) . Ambiguity on roles, responsibilities, and policy framework for decisions

. Multiple local funding authorities (i.e., Pinal County RTA, Maricopa County’s Prop 400) . Lack flexibility to revise or modify investment strategies; inability to respond to changing circumstances . Needs exist beyond expansion, but also modernization and preservation . Future less certain: changing technologies, innovations

. Restore Regional Transportation Plan to its purpose as a long-range, vision- based plan . Develop an investment program that manages specific investments; articulates how decisions are made and how projects are funded . Provide flexibility for regional policy makers to make the best decisions about regional investments

Enabling Legislation

Development of Regional Transportation Plan

Air Quality Conformity

Request ballot placement Backup Date for Election November 2024

Tentative Election Target Prop 400 Collections Expire November 2022 December 31, 2025

2019 2020

State of the Practice and Peer Region Analysis

Visioning

Existing and Future Needs Assessment

• Targets, performance • Evaluative framework • Revenue forecasts • Needs assessment Scenario Planning

Using vision and evaluation framework to test varying futures/alternatives Priority Strategies

Outline portfolio of long range, high performance improvements Public and Stakeholder Engagement

2020 2021 2022

Priority Strategies

Plan Development and Refinement

• Construction of long-range multimodal vision (RTP ”Imagine”) • Construction of individual programs with near-term investments Board of Supervisor and management strategy framework Air Quality Conformity Process Ballot Placement

Public and Stakeholder Engagement

All Other Arizona Counties Maricopa County (Prop 400) . Permits Board of Supervisors to . Legislature directs Board of Supervisors place county initiative on ballot. to place initiative on ballot. . Flexibility for the planning process . “Firewalled” allocations: to identify the range of . 56.2% freeways transportation needs, including . 33.3% transit maintenance. . 10.5% arterials . Authority for up to 1 cent. . Authority for up to ½ cent.

July 2000 February 2004 Proposition 400 Enabling Legislation Planning Process begins Signed

November 2003 November 2004 2003 Regional Voters Approve Transportation Plan Proposition 400 Approved

Freeway Program Transit Program Arterial Program $9.043 billion $5.002 billion $1.464 billion

All dollar amounts expressed in 2002 dollars

. Programs are defined by 20-year lists of projects

. Managed through a “Life Cycle Program” concept

. Guided by statutory requirements

Paving of Unpaved Active Transportation Street Intelligent Roads Transportation Studies Sweepers Transportation Systems (ITS)

Other $0.276 billion

All dollar amounts expressed in 2002 dollars

. Projects selected through a periodic call-for-projects process

. Agencies submit applications every one-to-three years

. Competitive selection based on evaluative criteria

700 Total projected collections: $8.98 billion (Original sales tax projections) 600

500

400

300

200 Projected Revenue (Millions) Revenue Projected 100

0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Year

All dollar amounts expressed in 2002 dollars

700 Proposition 400 Programs 600 Total Collections: $8.98 billion

500 Freeway Program: $9.043 billion

400 Transit Program: $5.002 billion

300 Arterial Program: $1.464 billion 200 Other: $0.276 billion Projected Revenue (Millions) Revenue Projected 100 Total: $15.785 billion 0 2011 2017 2010 2012 2013 2015 2016 2018 2019 2021 2014 2007 2006 2008 2009 2020 2022 2023 2025 2024 Year

All dollar amounts expressed in 2002 dollars

ADOT Highway Funds 26.1%

Sales Tax 53.8% Federal Transit 12.0%

MAG Federal Funds 8.1%

Half-Cent Sales Tax . Projected revenues: $8.499 billion* . Split between the three modal programs . Highways: 56.2% Sales Tax . Transit: 33.3% 53.8% . Arterials: 10.5% . Allocation first determined by 2003 RTP . Codified in State Statute as part of enabling legislation

*excludes $500 million for interest expense. All dollar amounts expressed in 2002 dollars

ADOT Highway Funds

ADOT . Projected revenues: $4.121 billion Highway Funds . Comprised of two sources: 26.1% . ADOT federal funds . Gas tax funds (HURF) . Allocated to the MAG region based on State Statutes and the ADOT five-year construction program

All dollar amounts expressed in 2002 dollars

© 2019, All Rights Reserved. 23 Extension of Proposition 400 Funding Source: Federal Transit Funds Federal funding allocated to the region based on formula or to a project based on competitive processes.

Federal Transit Funds . Projected revenues: $1.890 billion . Comprised of two sources: . Formula funds to MAG

Federal Transit . Federal discretionary awarded to projects 12.0% . Allocation of formula funds to MAG set by federal transportation legislation and other factors . Formula funds allocated to MAG

All dollar amounts expressed in 2002 dollars

© 2019, All Rights Reserved. 24 Extension of Proposition 400 Funding Source: MAG Federal Funds Federal funding allocated to MAG (the regional transportation planning agency) based on legislative formulas.

MAG Federal Funds . Projected revenues: $1.275 billion . Federal transportation funding allocated to MAG based on federal transportation legislation . Includes: . Congestion Mitigation and Air Quality (CMAQ) MAG Federal Funds . Surface Transportation Block Grant Program (STBGP 8.1% or STP) . Formula funds allocated to MAG

All dollar amounts expressed in 2002 dollars

Freeway Program Transit Program Arterial Program $9.043 billion $5.002 billion $1.464 billion 53% sales tax 56% sales tax 59% sales tax 47% state/federal 44% federal 41% federal

All dollar amounts expressed in 2002 dollars

Paving of Unpaved Active Transportation Street Intelligent Roads Transportation Studies Sweepers Transportation Systems (ITS)

Other $0.276 billion 11% sales tax 89% federal

All dollar amounts expressed in 2002 dollars

. How does this translate into what we are doing now?

. The next Regional Transportation Plan, Imagine, will be developed over the next two years

. Focus this fall is on enabling legislation

August Transportation Policy Committee October Management Committee Proposition 400 policy framework, Summary presentation to guide policy successes and lessons, proposed discussion funding policy framework

September Transportation Policy Committee October Transportation Policy Committee High-level revenue projections, known Policy guidance capital and projected operations and maintenance costs

. Significant regional needs still exist . Great Recession has led to Proposition 400 project deferrals and diminished transit service . System expansion still needed . Increased need for multimodal investments . Considerations of maintenance and modernization

. Proposition 300 versus Proposition 400 . Proposition 300 was focused on freeway capital . Proposition 400 included multimodal investments, including funding for operations

Operations & Maintenance, $157.97 m

Capital, $473.13 m