Hello all,

Here's a recap on what has emerged as a major transportation issue this session, the continuation of ADOT:

State agencies periodically go through a "sunset" review process where they are scheduled to expire unless legislation extends their existence. ADOT's current authorization, which covered an eight-year period, is set to expire on July 1st of this year. A sunset review hearing was conducted just prior to session and was followed up with continuation bills introduced in both chambers. The contents of the two bills have diverged in different directions.

The Senate Transportation, Technology & Missing Children Committee advanced SB1184. The committee's "do pass" recommendation came with the attachment of an amendment that shortened the original bill's four-year authorization to two, and tacked on numerous prohibitions for ADOT planning and programming including; reducing any existing highway lane miles, the development of greenhouse gas and carbon reduction plans, any motor vehicle travel mile reduction plan, and the development of passenger rail between Phoenix and Tucson.

Arizona has failed to increase or modernize the revenue streams that help pay for our transportation infrastructure for over thirty years. As a result, we have become increasingly dependent on federal dollars which now dominate the funding of the state's highway construction program. Many of these restrictions included in the Senate amended version of the bill seem to be directed at opposition to federal transportation laws and programs. The reality is if you are going to depend on federal money you need to comply with the federal requirements that come along with it.

The House version of the bill, HB2037, passed the House on Thursday by a 41-18 vote. HB2037 provides another eight-year extension and is "clean" as far as not tacking on any prohibitions to ADOT programming and planning.

As RTAC prioritizes addressing the massive under-investment levels of our transportation infrastructure, we also oppose any measures that would decrease or jeopardize the existing funding. For that reason, the attached letter was sent to the Governor and Legislators supporting an eight-year, "clean" continuation of ADOT.

Along those same lines, we previously sent to the Governor a letter opposing the $420 million in transportation "claw backs" included in this year's Executive Budget Proposal. The rationale for the "claw backs" was to temporarily take back funding that was previously appropriated to transportation projects if that funding was not likely to be used in the upcoming year. The RTAC position is to oppose any "claw back" that would delay or complicate project delivery. A copy of that letter is also attached.

In other transportation news:

SB1054, which extends for another five years the use of alternative project delivery methods such as Construction-Manager-At-Risk and Design-Build, passed the Senate 27-0 on Thursday and is ready for House consideration.

HB2866 which would assess an annual $135 fee for alternative fuel vehicles (excluding hybrids), failed in the House by a 35-24 vote on Thursday. As the bill would raise state revenues, it requires a two-thirds majority vote by both chambers which equates to 40 votes in the House. It remains to be seen if the vote will be reconsidered.

HB2318, the RTAC-led bill to reform the Arizona SMART Fund passed the House 57-1 and has been sent over to the Senate, where it has been assigned to the Senate Transportation, Technology and Missing Children Committee.

HB2412, the RTAC priority project legislation passed out of the House Transportation and Infrastructure Committee with a convincing 9-1 vote very early in the session and is ready to be considered by the House Appropriations Committee. As with other "money" bills (those seeking state funding), the state's budget outlook will greatly influence their outcomes. Unfortunately, a deficit is anticipated for at least the next two years, not a good scenario for pursuing funding. However, pushing for legislation like HB2412 remains important even in lean years so that the massive level of transportation under-investment and its impacts remain highly visible and a part of the agenda at the Capitol.

ADOT Continuation Support Letter

Transportation "Claw Back" Opposition Letter

2024 RTAC Transportation Bill Matrix March 2