The Regional Transportation Authority in Pima County is facing a funding shortage that could leave projects approved by voters in 2006 without the means to complete them.
Only Tucson-based projects remain to be funded, and Tucson must either provide $150M of its own money or set the amount in projects in the next 20-year plan. That plan – RTA Next – could go to the ballot in 2024. The current plan expires in June of 2026.
In the original RTA plan, voters authorized $1.6B in projects under a half-cent sales tax. RTA Next will continue the program with another $2B for another 20-year plan.
Revenues for the current program have been lower than projected. Tucson nearly withdrew from the RTA earlier this year unless RTA addressed the funding shortfall for Tucson’s projects. RTA approved a motion to create a plan for the funding gap.
The latest idea is to push some of the 11 pending Tucson projects into RTA Next. If voters do not approve the proposal, RTA would be required to come up with the necessary $150M to satisfy its obligations.
Other stakeholders are awaiting Tucson’s response as to what the City will fund, itself, and what it will push into the new plan.
The RTA Board is scheduled to meet Oct. 27, and Executive Director Farhad Moghimi will speak with the Tucson City Council before then to discuss RTA plan funding. It has not been determined at what Council meeting Moghimi will appear.
City officials have asked for clarification as to what projects could be affected and what its role will be in handling the shortfall.
The dispute centers largely around increasing construction costs. Tucson has pushed RTA to account for inflation in setting its project cost estimates, rather than relying on 2006 dollar projections.
RTA has only authorized three projects for costs greater than their 2006 budget amounts. Moghimi has said it is the RTA’s policy to fund projects at the actual costs for which they were bid.
While RTA has funded most of its projects at or below the 2006 amounts, costs began a gradual increase in 2017 and were then aggravated by supply chain issues, the ongoing labor shortage and a diminishing ability for local bodies to contract work on schedule.
While the debate continues on several of the projects, Tucson has been steadfast in lobbying for finishing upgrades on a three-mile portion of First Avenue between Grant and River roads under the current RTA.
The project has been revised from an expansion from four lanes to six to a proposal that now maintains four lanes but adds continuous sidewalks and upgraded traffic signals. The original 2006 project was budget at $71.4M. The current four lane option is now estimated at $73.4M, and the six-lane project would now cost $91.7M.
RTA has said the First Avenue project would have to go into RTA Next.
The disagreement threatens to become a growing sticking point in discussions between the two bodies. (Source)