Arizona Draws $4 Billion Plan to Ease Freeway Jams

DALLAS — The Arizona Department of Transportation is developing a $4 billion plan to reduce congestion on freeways in Maricopa County with bonds backed by sales tax revenue.

The long-range plan to increase capacity and alter traffic flows on three major freeways is a joint effort involving ADOT and the Maricopa Association of Governments, a local government consortium that directs revenue to transportation projects in Maricopa County.

While the Proposition 400 sales tax revenue has fallen sharply in the current recession, planners still expect the county’s population to double in 50 years, adding pressure to the highway system.

Proposition 400, passed originally in 1985, was extended through 2025 by voters in 2004, a year before it was scheduled to expire.

The measure allowed the county to levy 0.5 cent per dollar.

Last year, the Arizona Transportation Board that oversees ADOT issued $440 million of revenue bonds backed by the sales tax revenue.

The bonds carry ratings of AA-plus from Standard & Poor’s and Aa2 from Moody’s Investors Service.

For planners, the key focus is on Interstates 10 and 17, which carry the bulk of traffic through the metro area.

To relieve congestion, engineers are considering three sets of studies to separate short-distance traffic from the cars and trucks that are traveling longer distances.

Each project is expected to cost more than $1 billion, with additional costs for related development.

ADOT expects to wrap up design work this year on one of the three projects, a $1.9 billion South Mountain Freeway. Construction of the 22-mile highway could begin by 2014.

MAG has also identified $1 billion of funds available to expand 18 miles of I-17 near the airport, with a carpool lane feeding into downtown.

Work on as many as 24 lanes of Interstate 10 through the East Valley suburb of Tempe could cost as much as $1.2 billion, officials estimate.

To complete the plan, the state and local governments might need more revenue than is currently available, according to officials. The Arizona Department of Transportation has been forced to delay projects because of major funding shortfalls owing to continuing declines in sales tax revenue.

Standard & Poor’s last December downgraded Arizona’s issuer credit rating to AA-minus from AA and maintained a negative outlook on the rating.

Meanwhile,  Gov. Jan Brewer and her fellow Republican lawmakers have continued their struggle to bring the budget into balance.

In the recently concluded legislative session, lawmakers closed a $1.6 billion budget cap for the fiscal year beginning July 1, contingent on voters approving a temporary one-cent sales tax increase in May.

Moody’s downgraded Arizona’s issuer rating from Aa3 to A1 the same day as Standard & Poor’s, while also maintaining a negative outlook.

Neither of the downgrades affected the Proposition 400 bonds backed by Maricopa County’s sales tax revenue.

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Transportation industry Arizona
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