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Transportation Funding Sources

Funding is an integal part of transportation programming. Pima Association of governments receives about $15 million per annum from the Federal Highway Administration (FHWA)and $18 million of State Highway User Revenue Fund (HURF). Over half of the funds received are from both federal and state motor fuel taxes.

Federal Funds
As the federal designated MPO, PAG receives Federal Highway Administration Funds (FHWA) that are made available to PAG member jurisdictions for transportation projects. Surface Transportation Program (STP) funds received 'directly' by PAG are approximately $10 million annually, as well as somewhat less than $1 million in FHWA planning monies. An additional $5 million of federal funds are indirectly distributed from the Arizona Department of Transportation (ADOT) to PAG. For the most part, federal funds must be used on federal designated roads. (A portion of the STP may be exchanged for transit funding).
State Highway User Revenue Fund (HURF)
State statute provides PAG with a share of the State’s Highway User Revenue Fund (HURF). Approximately $18 million is forecasted for the current fiscal year. HURF consist of state collected fuel taxes and other user type taxes such as operator's licenses, vehicle registration, and taxes assesed on commercial trucks. The HURF revenues are made available to PAG member jurisdictions for transportation projects and must be used for streets and roads within the region.

Transportation Revenue Forecasts

In 2002, PAG developed a model to assist in forecasting regional transportation funds. Because population is a key factor in transportation funding distribution, the model incorporates the latest U.S. census data and the Arizona Department of Economic Security's (DES) population forecasts for the state and region. The model also can estimate funding distributions based on legislative changes. As bills are introduced that may impact transportation funding, features of a bill or budget plan can be incorporated into the model forecasts.

Federal fund forecasts are based on six-year transportation bills. Historical values from prior federal legislation are used to develop forecasting trends. The model also has the capability to run various federal scenarios and compare proposed changes on the federal level.  



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