By Rebekah Morris for AZBEX
The annual State Transportation Improvement Plan shows a significant 17.32% increase in the five-year total from last year, primarily due to federal funding increases. This is the third year in a row the Arizona Department of Transportation has seen 10%+ increases in the five-year total.
Consistently the second-largest capital improvement plan in the state, this increase in funding bodes well for future transportation project opportunities for design & construction firms.
The plan and associated programs are divided into four primary operational areas:
- Highways,
- Maricopa Association of Governments’ Regional Transportation Plan Freeway Program,
- Pima Association of Governments Regional Transportation Program, and
- Airport Capital Improvement Program.
Notably, the highways section is seeing the largest increase YoY, realizing nearly $2B in increased funding for that section of the plan. Offsetting that increased revenue, both MAG and PAG see declines in the five-year totals.
For comparison, in the document released in summer of 2020, MAG accounted for $2.651B in funding. In 2021, the corresponding value was $2.389B. PAG did have a spike in last year’s funding, but otherwise follows a similar downward trend.
Funding Increase Primarily a Result of Federal Measures
The Department planning overview states: “Funding for Arizona’s transportation needs has improved since the previous Five-Year Program, although it remains an area of concern over the long term. Growth in Highway User Revenue Fund revenues is projected to increase significantly over the term of the 2023-2027 Five Year Program, due mainly to the stronger economic recovery from the COVID-19 pandemic in FY 2021 and the addition of new revenues from the Smart and Safe Arizona Act (Proposition 207) in FY 2022 and beyond.”
It continues: “In November 2021, Congress also passed a new, long-term, federal aid highway program, the Infrastructure Investment and Jobs Act, also known as the Bipartisan Infrastructure Law (BIL). BIL became law on November 15, 2021 and ADOT estimates the State will receive $5.3B in apportionments over the period 2022 through 2026. …(T)his represents a significant increase in funding over the previous authorization (the FAST Act). Regardless, federal aid provides the majority of funding for Arizona’s transportation system and funding from BIL is the primary driver of the increase in the 2023-2027 Five Year Program.”
Funding Follows Priorities of Transportation Corridors, Preservation & Maintenance
Unsurprisingly, the funding for transportation projects follows major corridors and an increased focus on preservation and maintenance of existing public assets.
As funding becomes available, projects like pavement preservation are able to increase rapidly and deliver the benefits to the public in a relatively short amount of time. Since the federal government is providing much of the increased funding, it stands to reason that these line items would see a corresponding increase in revenue.
Some of the largest individual projects in the five-year program include:
- $400M: I-10 Pavement Rehabilitation – from SR 202 to SR 387;
- $209M: I-10 Widening, SR 202L (Santan) – Riggs Rd;
- $188M: SR 202L, Santan – Val Vista Dr – SR 101 Price;
- $181M: US 60 Reconstruction – 35th Ave/Indian School Rd Intersection;
- $146M: I-40 Pavement Rehabilitation from US-93/I-40 West Kingman TI;
- $144M: I-10 Traffic Interchange – Country Club Rd TI;
- $135M: SR 101L Road Widening – 75th Ave – I-17;
- $134.5M: SR 101L, Pima Freeway – Princess Dr. – Shea Blvd.;
- $118M: SR 30, Tres Rios – SR 303L – SR202L;
- $110M: I-10 Bridge Reconstruction at Gila River, and
- $100M: I-10, Maricopa Freeway TI, Sky Harbor West Airport Access.
AZBEX NOTE: The values listed above are inclusive of all funding allocated in the 5-year plan, including funding for design, construction, right-of-way and other costs.
ADOT Continues to Deliver Transportation Projects
ADOT remains one of the most important public agencies in the state, notably serving residents across all regions from the Sonoran Desert to northern mountains. The agency continues to deliver transportation projects for the benefit of residents and businesses alike.
ADOT’s plan is one of the dozens BEX Research examines every year for our annual CIP Special Report, which reviews, summarizes and – to the extent possible – standardizes the disparate Capital Improvement Plans for major jurisdictions and agencies across the state.
As we said in our report on the Phoenix CIP, the release of the CIP Special Report is also timed to coincide with our annual Public Works Conference, and this year is no different. The PWC brings together industry professionals from across the state for a half-day program featuring public officials, A/E/C leaders and independent experts to showcase the latest trends, successes, challenges and opportunities for public projects in the year to come. (AZBEX; Sept. 27)
Advance tickets are on sale now for the 2022 PWC taking place on Oct. 18. As usual, we have also scheduled the CIP Report for release the same day. A tentative program and speakers list are available here, as is a variety of purchase options for the conference, the CIP Report, or both.