What's Hot

    Affordable Housing Developments Planned in Tucson’s Mercado District

    May 9, 2025

    Scottsdale Water Needs $50M for ‘Toilet to Taps’

    May 9, 2025

    Goodyear Okays Residential to Industrial Rezone for 267 Acres

    May 9, 2025
    Facebook Twitter Instagram
    AZBEX
    NEWS TICKER
    • [May 9, 2025] - Affordable Housing Developments Planned in Tucson’s Mercado District
    • [May 9, 2025] - Scottsdale Water Needs $50M for ‘Toilet to Taps’
    • [May 9, 2025] - Goodyear Okays Residential to Industrial Rezone for 267 Acres
    • [May 9, 2025] - Bureau of Reclamation Moves Red Gap Ranch Pipeline Forward
    • [May 9, 2025] - Arizona Projects 05-09-25
    • [May 7, 2025] - First Development Planned in Maricopa Industrial Triangle
    • [May 7, 2025] - Mixed Residential Development Planned in Maricopa
    • [May 6, 2025] - 302 Apartments Proposed on Phoenix-Scottsdale Border
    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

      Affordable Housing Developments Planned in Tucson’s Mercado District

      May 9, 2025

      Scottsdale Water Needs $50M for ‘Toilet to Taps’

      May 9, 2025

      Goodyear Okays Residential to Industrial Rezone for 267 Acres

      May 9, 2025

      Bureau of Reclamation Moves Red Gap Ranch Pipeline Forward

      May 9, 2025

      ASPE Panel Discusses Tariffs, Uncertainty and Optimism

      May 2, 2025

      Small & Disadvantaged Business Transportation EXPO is May 20

      May 2, 2025

      Arizona Water Professionals Remain Hopeful Despite Colorado River Struggles

      April 29, 2025

      Casa Grande Considering More than $65M in New Rec Facilities

      April 29, 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

      Axon Says it will Open Search for New Location

      January 10, 2025

      Scottsdale Water Needs $50M for ‘Toilet to Taps’

      May 9, 2025

      Phoenix Releases $11.5B, 5-Year CIP with Nearly 1,000 Projects

      April 1, 2025

      Buckeye Starts Planning Bond Funding Outlays

      February 26, 2025

      $400M of Federal Funding in Limbo for Phoenix Plans

      February 14, 2025

      Commercial Real Estate 05-06-25

      May 6, 2025

      Commercial Real Estate 04-29-25

      April 29, 2025

      Commercial Real Estate 04-22-25

      April 22, 2025

      Commercial Real Estate 04-15-25

      April 15, 2025

      Industry Professionals 05-06-25

      May 6, 2025

      Industry Professionals 04-29-25

      April 29, 2025

      Industry Professionals 04-22-25

      April 22, 2025

      Industry Professionals 04-15-25

      April 15, 2025

      Arizona Projects 05-09-25

      May 9, 2025

      Arizona Projects 05-02-25

      May 2, 2025

      Arizona Projects 04-25-25

      April 26, 2025

      Arizona Projects 04-18-25

      April 18, 2025

      Executive Order Will Streamline Federal Acquisition Regulations System

      April 26, 2025

      Legislation to Save Axon Plan Continues to Advance

      April 16, 2025

      Court Issues Summary Judgment in X Phoenix Case

      April 16, 2025

      House Bill Would Expand LIHTC Credits

      April 15, 2025

      U.S. Construction Added 11,000 Jobs in April

      May 6, 2025

      Jobsite Safety Can Improve 7x with Best Practices

      May 6, 2025

      March Construction Job Openings Down by 38,000

      May 2, 2025

      Ariz. Construction Gained 2,000 Jobs in March

      April 22, 2025

      Affordable Housing Developments Planned in Tucson’s Mercado District

      May 9, 2025

      Scottsdale Water Needs $50M for ‘Toilet to Taps’

      May 9, 2025

      Goodyear Okays Residential to Industrial Rezone for 267 Acres

      May 9, 2025

      Bureau of Reclamation Moves Red Gap Ranch Pipeline Forward

      May 9, 2025
    • AZBEX
      • Subscribe
      • Classifieds
      • Advertising
    • DATABEX
      • Webinars
      • Monthly Snapshot
    • Events
      • Housing Projects on the Horizon
    • 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

    U.S. Construction Added 11,000 Jobs in April

    May 6, 2025

    Jobsite Safety Can Improve 7x with Best Practices

    May 6, 2025

    ASPE Panel Discusses Tariffs, Uncertainty and Optimism

    May 2, 2025

    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Our Picks

    Affordable Housing Developments Planned in Tucson’s Mercado District

    May 9, 2025

    Scottsdale Water Needs $50M for ‘Toilet to Taps’

    May 9, 2025

    Goodyear Okays Residential to Industrial Rezone for 267 Acres

    May 9, 2025

    Bureau of Reclamation Moves Red Gap Ranch Pipeline Forward

    May 9, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • LinkedIn
    • YouTube
    Don't Miss
    Planning & Development

    Affordable Housing Developments Planned in Tucson’s Mercado District

    May 9, 20250

    By Roland Murphy for AZBEX A pair of affordable multifamily apartment developments are under consideration…

    Scottsdale Water Needs $50M for ‘Toilet to Taps’

    May 9, 2025

    Goodyear Okays Residential to Industrial Rezone for 267 Acres

    May 9, 2025

    Bureau of Reclamation Moves Red Gap Ranch Pipeline Forward

    May 9, 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

    Affordable Housing Developments Planned in Tucson’s Mercado District

    May 9, 2025

    Scottsdale Water Needs $50M for ‘Toilet to Taps’

    May 9, 2025

    Goodyear Okays Residential to Industrial Rezone for 267 Acres

    May 9, 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.