Transportation Solutions News

When Arizonans Need Transit Most, Traditional Funding Falls Short

A white paper released by the Arizona PIRG Education Fund today highlighted that while government is facing increasing financial challenges, Arizonans are facing their own set of challenges. According to the white paper, although public transportation can help Arizonans save money, lower than expected revenues can cause problems such as fare hikes, service cuts, and delayed construction projects that otherwise would create jobs and improve our transportation system in the long run.

“When people choose public transit instead of driving, the result is less congestion, less pollution and fewer accidental injuries and deaths,” stated Alex Nelson, Transportation Associate for the Arizona PIRG Education Fund.  “And public transit provides an excellent opportunity for Arizonans to deal with the rising cost of driving.”

Many transportation projects in Arizona are funded through sales taxes that were created by ballot initiatives such as Proposition 400 in Maricopa County, which funds a multiplicity of projects including light rail extensions or Proposition 403 in Flagstaff, which establishes a bus line through the Northern Arizona University campus. The future of the transit projects that would be funded by this plan are in limbo as a result of declining sales tax revenues. In addition, Valley Metro, the transit provider for the Phoenix-Mesa metropolitan area, is currently considering service cuts and rate hikes.

“To meet transportation challenges, our state and local governments need to consider a wide array of different funding mechanisms. It is crucial that transit funding be stable and dedicated to help insulate our transportation system from changes in our economy and the whims of elected officials,” said Nelson.

Why and How to Fund Public Transportation highlights some of the unique challenges that the Arizona State Constitution creates in terms of funding transportation.  For example, the Constitution prohibits using gas tax revenues from being used on transit, which helps reduce the air pollution that the burning of gasoline helps to create. In addition, Proposition 100 which passed last November prohibits real estate transfer fees, which are used in many communities to help pay for infrastructure.

“Unfortunately there is no silver bullet that will solve all of our transportation funding problems. While some transportation funding sources work well in a booming economy, others work well in a recession,” said Nelson. “The situation we are in now clearly demonstrates that relying too heavily on one revenue source can lead to serious problems.”

There are a wide variety of sources to consider, which are outlined in the white paper, which is available here.

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