The local governments around Maricopa County have been waiting to see what action the State Legislature might take to allow the county to ask voters to renew its half-cent sales tax used for transportation projects.

The tax was first implemented in 1986 with voter approval. A vote in 2004 renewed the tax through 2025. The 40-year duration of the tax has generated an estimated $13 billion-plus in revenue to be used for a variety of public transportation initiatives. These range from freeway construction and highway improvements to buses and light rail.

The Maricopa Association of Governments (MAG) is the regional coalition that manages the Prop 400 program. MAG had requested a ballot proposal to renew the tax for the November 2022 election. That had bipartisan support in both the Arizona House and Senate but was vetoed by Governor Doug Ducey. MAG has asked again to have the measure on the ballot in 2024, but as of yet the legislature has not acted.

After passage of the budget for the coming fiscal year the legislature took a break before coming back into session to address some unfinished business including the Prop 400 renewal legislation. They were to reconvene on Monday, June 12.

It is of interest that any county in the state, except Maricopa, can place such a tax measure before its voters without legislative approval.

Since its inception the revenues from the half-cent tax have provided for construction of hundreds of miles of freeway, all the existing light rail construction and the expansion and upgrades to bus service throughout Maricopa County. The county continues to be one of the fastest growing regions and economies in the country and economic development officials say the transportation infrastructure is vital to keeping up and continuing that growth. It is noted that 80% of jobs in Maricopa County are within two miles of a freeway or light rail corridor.

“Without the needed freeway improvements, the state is estimated to lose $30 million in labor income per year and $102 million in economic output per year,” states an economic analysis of the Proposition 400 extension.

Conservative political opposition and resistance to light rail expansion is often cited as a component of difficulty in getting legislative approval for the vote.

Local help

Audra Koester-Thomas is Transportation Planning Manager for MAG and is also a Fountain Hills resident. She calls the tax vital for the future in the Valley.

“The existing half-cent sales tax expires Dec. 31, 2025,” Koester-Thomas said. “If voters do not have a chance before then to endorse a continuation of the tax, funding will not be collected as of Jan. 1, 2026.”

There are three major street projects in Fountain Hills called out in the proposed plan for the next 25 years. The estimated costs are $80,290,000, according to Koester-Thomas. The regional Prop 400 funding would provide $56,203,000 for these projects.

The projects include reconstruction of Palisades Boulevard from Shea to Saguaro boulevards; widening of Shea Boulevard between Palisades Boulevard and Technology Drive; and reconstruction of Saguaro Boulevard between Shea and Fountain Hills boulevards (this is a project that was completed about seven years ago using a voter approved bond, the life of the existing pavement would likely extend to near the end of the new 25-year plan).

The Prop 400 funds also support the current Valley Metro Express Route between Fountain Hills and Mesa (Loop 202 and Gilbert Road).

“It would be expected that with an extension of Prop 400, the Town would pursue additional funding to support additional arterial, transit, bicycle and pedestrian, safety and ITS projects,” Koester-Thomas said. “The Town has previously been successful through MAG’s Regionally Competitive Program process.”

Fountain Hills Mayor Ginny Dickey is a proponent of the Prop 400 renewal.

“With a downgrade of air quality standards again looming, not passing Prop 400 with a sufficient amount of transit will result in jeopardizing future economic investment, with potential federal mandates imposed limiting any number of business and manufacturing opportunities, including companies voluntarily deciding to locate elsewhere,” Dickey said.

Legislative approval of the ballot request would have the effect of letting voters decide whether to extend the transportation tax. The ultimate decision is at the polls.