What's Hot

    Hobbs, Legislators Reach Water Use Compromise

    June 24, 2025

    $56M+ MAG Program will Enable $90M in Arterial Street Widening Projects

    June 24, 2025

    Queen Creek Council OKs Amendment for 166-Unit Townhome Project

    June 24, 2025
    Facebook Twitter Instagram
    AZBEX
    NEWS TICKER
    • [June 24, 2025] - Hobbs, Legislators Reach Water Use Compromise
    • [June 24, 2025] - $56M+ MAG Program will Enable $90M in Arterial Street Widening Projects
    • [June 24, 2025] - Queen Creek Council OKs Amendment for 166-Unit Townhome Project
    • [June 24, 2025] - Ariz. Construction Shed 1,700 Jobs in May
    • [June 24, 2025] - Industry Professionals 06-24-25
    • [June 24, 2025] - Commercial Real Estate 06-24-25
    • [June 20, 2025] - MAG Committee Info Details Upcoming Pavement Plans
    • [June 20, 2025] - Bullhead Resort in Limbo After Continued No-Shows at Land Auction
    Facebook Twitter YouTube LinkedIn
    • Home
    • News
      1. View Latest
      2. Planning & Development
      3. Local News
      4. Classifieds
      5. Editorial Analysis
      6. Budgets & Funding
      7. Commercial Real Estate
      8. People on the Move
      9. Arizona Projects
      10. Legislation & Regulations
      11. Trends

      Queen Creek Council OKs Amendment for 166-Unit Townhome Project

      June 24, 2025

      Bullhead Resort in Limbo After Continued No-Shows at Land Auction

      June 20, 2025

      Mesa Considering $6.36M in Tax Incentives for SimonCRE Development

      June 20, 2025

      Mesa Boards Review 36-Unit Apartment Plan

      June 18, 2025

      $56M+ MAG Program will Enable $90M in Arterial Street Widening Projects

      June 24, 2025

      Ariz. Construction Shed 1,700 Jobs in May

      June 24, 2025

      MAG Committee Info Details Upcoming Pavement Plans

      June 20, 2025

      Phoenix Delays Data Center Rezone Vote

      June 20, 2025

      Glendale Voters to Determine VAI Resort’s Fate

      May 16, 2025

      Legislation Would Effectively Strip NIMBYs of Referendum Tool

      February 11, 2025

      2025 Forecast Tries to Clarify an Uncertain Market

      February 7, 2025

      KOREPlex Buckeye Site Quietly Listed For Sale

      January 31, 2025

      $56M+ MAG Program will Enable $90M in Arterial Street Widening Projects

      June 24, 2025

      MAG Committee Info Details Upcoming Pavement Plans

      June 20, 2025

      MAG Meetings Detail Prop 479 Freeway Life Cycle Plans

      June 17, 2025

      Coconino Community College Issues $100M Bond Ballot Request

      June 17, 2025

      Commercial Real Estate 06-24-25

      June 24, 2025

      Commercial Real Estate 06-17-25

      June 17, 2025

      Commercial Real Estate 06-10-25

      June 10, 2025

      Commercial Real Estate 06-03-25

      June 3, 2025

      Industry Professionals 06-24-25

      June 24, 2025

      Industry Professionals 06-17-25

      June 17, 2025

      Industry Professionals 06-10-25

      June 10, 2025

      Industry Professionals 06-03-25

      June 3, 2025

      Arizona Projects 06-20-25

      June 20, 2025

      Arizona Projects 06-13-25

      June 13, 2025

      Arizona Projects 06-06-25

      June 6, 2025

      Arizona Projects 05-30-25

      May 30, 2025

      Hobbs, Legislators Reach Water Use Compromise

      June 24, 2025

      Phoenix Delays Data Center Rezone Vote

      June 20, 2025

      More Cities Considering Data Center Restrictions

      June 18, 2025

      Phoenix Considering Data Center Development Restrictions

      May 21, 2025

      Ariz. Construction Shed 1,700 Jobs in May

      June 24, 2025

      NABH Council Partnership Wants to Expand Workforce Pipeline

      June 17, 2025

      Project Abandonments Hit a Record in May

      June 13, 2025

      U.S. Construction Added 4,000 Jobs in May

      June 10, 2025

      Hobbs, Legislators Reach Water Use Compromise

      June 24, 2025

      $56M+ MAG Program will Enable $90M in Arterial Street Widening Projects

      June 24, 2025

      Queen Creek Council OKs Amendment for 166-Unit Townhome Project

      June 24, 2025

      Ariz. Construction Shed 1,700 Jobs in May

      June 24, 2025
    • AZBEX
      • Subscribe
      • Classifieds
      • Advertising
    • DATABEX
      • Webinars
      • Monthly Snapshot
    • Events
      • 2025 Mid-Year Update
    • About Us
      • Meet the Company
      • Meet the Sales Team
      • Meet the Editorial Team
      • Meet the BEXperts
    AZBEX
    Home » Trends » Are Tolls the Only Option for Infra. Funding?
    Trends

    Are Tolls the Only Option for Infra. Funding?

    BEX StaffBy BEX StaffJanuary 23, 2018No Comments5 Mins Read
    Credit: Wikimedia Commons
    Share
    Facebook Twitter LinkedIn Pinterest Email

    By Roland Murphy for Arizona Builder’s Exchange

    If we don’t build it – and maintain it, and repair it – they won’t come, and we can’t go.

    But we can’t build, maintain or repair it if we don’t fund it.

    If you will forgive a litany of mixed metaphors, this is not a chicken and egg problem. It is the direct result of decades of childish “neener, neener” level finger pointing and kicking the can down the road in the political hope that complicated and nuanced political and economic issues will become someone else’s problems.

    That’s not a partisan statement. There is an abundance of blame to go around regardless of one’s political orientation.

    As I write this on January 22, the government is in another shutdown. Meanwhile, President Trump is hinting that portions of his long-touted $1T infrastructure plan may be announced in the coming weeks.

    More States Looking at Tolls

    A Jan. 18 National Public Radio report stated more and more states are looking at tolls as a means to shore up their funding for roads and other infrastructure projects. States that already have tollways in place are raising or considering raising their rates.

    It’s not hard to understand why. Gas taxes, a primary vehicle for funding infrastructure projects, have sat at the same rate for almost 25 years, even as vehicle efficiency and lifestyle changes means the average driver is using less gas.

    While there is a broad desire for increased funding, the political climate of the past decade, and the economic turbulence that immediately preceded it, have generated a hesitancy to even talk about tax increases, much less a motivation to implement them.

    The NPR report quoted Carl Davis, research director for the Institute on Taxation and Economic Policy, as saying, “I think the states over time have lost hope in the federal government enacting a real, long-term infrastructure package. And so, they’ve taken matters in their own hands and boosted funding on their own.”

    The broad overview floated by the Trump Administration a year ago called for $200B in seed money to encourage $800B in private infrastructure investment. The caveat is, private investors require a return. As such, the infrastructure projects to be undertaken have to have an attached revenue stream.

    Tolls or user fees are the most straightforward ways to achieve that, but they are immensely unpopular in much of the country.

    Stephanie Kane, spokesperson for the Alliance for Toll-Free Interstates, quoted by NPR, called tolls, “the worst funding mechanism available. No other road funding mechanisms come with half as long a list of drawbacks and disruptions for the communities where they’re located,” she said.

    Among the many problems opponents list with tollways are the fact that many drivers will take alternate routes, increasing the load on non-toll routes, and that many see it as a double payment on top of the gas tax.

    Davis noted 26 states have increased their own gas taxes in recent years, a highly unusual occurrence, historically. That, however, is not sufficient to cover the gaps across the board.

    As federal funding lags, political gridlocks drag on and states’ needs – including here in Arizona – grind on without apparent relief in sight, the public-private partnership/return-on-investment-based approach appears to many to be the quickest way forward.

    The State of Affairs

    Back in December we covered a survey put out by Forbes Insights on infrastructure challenges and opportunities. (AZBEX; Dec. 1, 2017). Respondents gave the state of U.S. infrastructure a “C” grade, and 64 percent said the nation was “significantly underinvesting”.

    We reported, “The majority (69 percent) of respondents say the public sector needs to do more to promote and empower the sale or lease of infrastructural components to the private sector, and half (49 percent) say officials need to cut barriers to ‘the sale or lease of government assets.’ If enacted, respondents claim, public-private partnerships would be easier to enact and become more common.”

    Sixty-five percent of responding infrastructure investors and providers listed the U.S. as either their first, second or third choice for attractive marketplaces.

    Arizona Needs Work

    In an August report, the American Society of Civil Engineers graded Arizona’s bridges as “B”, but gave its roads a “D+”, with an overall infrastructure grade of “C”. (AZBEX, Aug. 8, 2017)

    In-state and federal tax and revenues and user fees are the state’s leading infrastructure funding source, but, “Only 51 percent of fees like the Vehicle License Tax are actually used for transportation, and federal funding has become unreliable,” according to the report.

    A Cultural Shift?

    Tax increases, tolls and user fees, alone or in some combination, are the most commonly discussed mechanisms for increased infrastructure funding.

    Of these, user fees encounter the most resistance. Generally speaking, a per-mile charge would apply and drivers would be based on their amount of actual infrastructure usage. Opponents, however, note the exceptionally deep privacy concerns that would accompany tracking exactly when people drove and where they went.

    The argument against any kind of new taxation took root in the 1990s and has only gotten more deeply entrenched.

    Tolls, including tollways with franchise options, are increasingly under review. As part of a franchise option, in addition to the user charge, companies that want to operate along the tollway – gas stations, fast food outlets, etc. – would pay the state (or the managing P3) a licensing fee for exclusive rights to do business there for a period of time.

    That might be one way to keep the burden minimal to users hastening the availability and breadth of funding.

    Regardless of the ultimate solution, the current shape of Arizona’s roadways, the unwillingness of leaders to compromise at any level of government and the lack of any simple and obvious answer means infrastructure users, advocates and leaders have to keep every option on the table until a solution can be reached.

    Alliance for Toll Free Interstates American Society of Civil Engineers Funding gas tax infrastructure Institute on Taxation and Economic Policy national public radio NPR tolls
    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email

    Related Posts

    Ariz. Construction Shed 1,700 Jobs in May

    June 24, 2025

    NABH Council Partnership Wants to Expand Workforce Pipeline

    June 17, 2025

    Project Abandonments Hit a Record in May

    June 13, 2025

    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Our Picks

    Hobbs, Legislators Reach Water Use Compromise

    June 24, 2025

    $56M+ MAG Program will Enable $90M in Arterial Street Widening Projects

    June 24, 2025

    Queen Creek Council OKs Amendment for 166-Unit Townhome Project

    June 24, 2025

    Ariz. Construction Shed 1,700 Jobs in May

    June 24, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • LinkedIn
    • YouTube
    Don't Miss
    Legislation & Regulations

    Hobbs, Legislators Reach Water Use Compromise

    June 24, 20250

    A compromise between Republican legislators and Gov. Katie Hobbs could free up water rights to…

    $56M+ MAG Program will Enable $90M in Arterial Street Widening Projects

    June 24, 2025

    Queen Creek Council OKs Amendment for 166-Unit Townhome Project

    June 24, 2025

    Ariz. Construction Shed 1,700 Jobs in May

    June 24, 2025

    BEX serves architecture, engineering and construction firms as well as all the ancillary product and service categories that market to them. These include manufacturing representatives, public agencies and private real estate organizations, specialty subcontractors and services providers related to our industry.

    Our Picks

    Hobbs, Legislators Reach Water Use Compromise

    June 24, 2025

    $56M+ MAG Program will Enable $90M in Arterial Street Widening Projects

    June 24, 2025

    Queen Creek Council OKs Amendment for 166-Unit Townhome Project

    June 24, 2025
    Contact Us

    Phone: 480-709-4190
    Address: P.O. Box 12196 Tempe, AZ 85284
    Email: sales@azbex.com

    Type above and press Enter to search. Press Esc to cancel.