Minutes of a Public Meeting
MEETING OF THE
GOVERNOR’S TRANSPORTATION VISION 21 TASK FORCE
2:00 p.m., Tuesday, February 13, 2001
Arizona State Capitol
Executive Tower, 2nd Floor State Reception Room
Phoenix, Arizona
The Governor’s Transportation Vision 21 Task Force met in official session for a meeting at 2:08 p.m., Tuesday, February 13, 2001 with Co-Chairperson Martin Shultz presiding. Co-Chairperson Sharon Megdal, Ph.D. arrived at 2:15 p.m. Other members in attendance were: Frank Thorwald, Lela Steffey, Mary Peters, Sheldon Miller, Joe Herrick, Tom Browning, Robert Bulla (left at 3:15), Raul Pina, Jim Shipman, Steve Wheeler, Priscilla Cornelio, Ingo Radicke, Dave Olney, John Bivens, Dennis Mitchem, Steve Basila, Valerie Manning, Rene Redondo, Gary Knight, John Mawhinney, Barbara Ralston, Kurt Davis, Kevin Olson (arrived at 2:42). Also present were Alan Maguire, Mary Lynn Tischer, John Carlson, Matt Carpenter and Lisa Pendrick.
Welcome, Opening Remarks
Co-Chairman Shultz called the meeting to order at 2:08 p.m. and led the pledge of allegiance.
Acceptance of Minutes for January 12, 2001
Action: Mr. Shultz deferred this agenda item to be handled at the end of the meeting.
Future Discussion of 20-Year Multi-Modal State Transportation Plan
Mr. Maguire stated that he had incorporated the last meeting’s priorities into the draft provided today to the Task Force. He further stated that the last few weeks had been very productive in pinpointing priority changes.
Mr. Mike Ferreri provided a review of the recent changes to the plan, stating they focused on expenditure categories.
Mr. Yonel Grant stated that a lot of research had been done since the last meeting, especially in the area of looking beyond the database. A key point was that the expected population increase statewide for the next 20 years would be 48%. He discussed the various methods employed to gather data not already available. Mr. Grant further stated that expansion needs for bus and rail systems were identified as a high priority in their research results, as were aviation concerns.
Mr. Maguire gave the Task Force members handouts and a slide presentation to illustrate the plan costs, stating that the preservation budget had been increased as the Task Force requested, and that the total budget amount called for by the plan was $61 billion for the 20-year period. Mr. Maguire stated that his staff and Mr. Grant and Mr. Ferreri had painstakingly reviewed the expenditure analysis in order to rule out any duplicate funding. Mr. Maguire explained that over 600 projects had been reviewed by this process. He also stated that the precise division of the dollars would be determined by future legislators. It was established that pedestrian issues were included in the projected expenditure calculations in the non-motorized category. Mr. Maguire stated that 47.9% of the budget would be set aside for expansion projects. Mr. Maguire assured Task Force members that they reserved the right to make any changes at this point. He also said the plan emphasized connectivity between jurisdictions.
Mr. Maguire stated that the possible funding sources for $41 billion of the $61 billion proposed were already identified. Mr. Maguire stated that many of the costs represented full expansion of programs. He also stated that not all issues were addressed, because if they had been the plan would not be feasible, totalling over $80 billion.
At Mr. Wheeler’s request, Mr. Maguire outlined those areas not covered in the plan as secondary items. He stated the option was open for them to be funded later by mandates from future lawmakers or task forces.
Mr. Maguire explained that the education budget did include the salaries of employees and room for 20-year expansion of staff.
Mr. Thorwald stated a concern that there wasn’t enough information yet available for the level of in-depth planning the Task Force was undertaking and Mr. Shultz explained that there was a simultaneous effort occurring among the Committees and other individuals were working on the planning, too. Dr. Megdal further stated that nothing was set in stone and that the Booz-Allen projection of $41 billion was as accurate as possible, considering the variables involved.
Mr. Maguire stated that light rail was included in the projected costs section of the plan, since it was difficult to categorize into one of the other three categories. He further explained that the Task Force was attempting to identify all needs, not set a 20-year course of action at this juncture.
Ms. Carpenter discussed the impact of the hypothesized revenue package, which outlined possible methods for funding the $41 billion plan. She discussed the possibilities generated by HURF and stated that the Maricopa County Road Tax could generate as much as $33 billion, although it was scheduled to cease in 2006.
Mr. Shultz asked for the opinion of the financial experts consulting the Task Force, and they assured him that they felt the estimate of $41 billion was realistic.
Ms. Carpenter explained that a fee charged per passenger that traveled through Sky Harbor and Tucson International would bring in $50 million and $5 million annually if it stayed at $3 per passenger. She stated it was up for renewal in April 2002, and at that time, Phoenix would attempt to increase it to $4.50 per passenger, which would generate a total of $1.5 billion for Sky Harbor in the first five years. She stated the plan calls for over $4 billion to fund airports but that Phoenix and Tucson alone had the capabilities of generating $2.5 billion. Possible funding sources that could cover the remaining $1.5 billion were discussed. Those present came up with ideas of development fees, miscellaneous fees, and parking fees.
Mr. Shultz asked if Mr. Carlson had information on the aviation bills now before the Legislature, and he stated he was aware that there were two in the House and two in the Senate.
Dr. Megdal asked Ms. Carpenter to explain Tucson’s gas tax indexing calculations (indexing currently proposed by Tucson Mayor). Ms. Carpenter stated if the indexing were approved, it would generate $16 billion over the 20 years. If the gas tax were not indexed, the return figure would be $11.3 billion. She further stated these funds would help to offset inflation.
Mr. Thorwald inquired about the figures on projected inflation, and Ms. Carpenter stated that 3.5% per year was projected.
Ms. Carpenter then outlined several ways of covering the $25 billion deficit, with the options of raising fuel taxes, development fees, parking fees, etc. She stated that a typical impact on a family of four at a $40,000 income level would be approximately $205 per year, which encompassed raising the gas tax ($130/year) and raising the sales tax ($75/year). She stated these figures were based on a two-car household with a total of $12,000 miles driven per car per year. It was determined that 12,000 annual miles per car was the average mileage for urban and rural households alike.
Mr. Mawhinney suggested avoiding restriction options for raising money and Mr. Shultz agreed, stating that the decisions would be made later and passed on to the Legislature with background reasoning, and the Legislature would have the final approval.
Dr. Megdal suggested starting the March 1, 2001 meeting at 10:00 a.m. and continuing until 2:00 and having lunch brought in. She stated that it was difficult for the members who had to travel long distances to arrive by 9:00 a.m. She noted the importance of all members being present at the next meeting as it would be crucial in the funding planning process and wrapping up the recommendations to Governor Hull. The Task Force members agreed to the schedule change.
Mr. Maguire stated that he and Ms. Carpenter would come up with handouts with different possibilities for covering the $25 billion deficit for the Task Force to discuss. He stated he would distribute them within ten days so that the members could review them before the meeting.
Mr. Thorwald asked if tribal needs had been addressed in the model, and Mr. Maguire stated that few had because he could not access tribal revenue information. Mr. Thorwald asked if other states’ information could be used to measure the monetary impact of congestion pricing and tolls on the potential plan. Dr. Tischer stated that there had been a study conducted of other states regarding tolling HOV lanes, which produced a figure of $10 million as a possible revenue generation.
Mr. Mitchem opined that packaging of the sales and gas tax increases would be crucial, although he felt that most families would be willing to pay $205 per year for an improved transportation system.
Mr. Shultz stated that the funding options would be identified at the March 1st meeting, and then the public hearings could be set after March 22nd. He estimated the Task Force should be ready to submit their package to the Governor by April 17th.
Ms. Peters commented that the Task Force had made great progress and thanked the consultants and staff.
Call to the Public
Ms. Susanne Gillstrap, 2203 N. 3rd Street, Phoenix, Arizona, commended the Task Force on their work and stated that she represented Valley property owners. She explained that she and other homeowners felt that ADOT should pick up the cost of noise barriers for the freeway systems. She asked the Task Force to keep her recommendation in mind when submitting their final plan to the Governor.
Mr. Olson commented that he disagreed with Ms. Gillstrap, stating he felt that citizens had been provided a freeway that raised their property values, and everyone who used the road should share the noise barrier costs. It was mentioned that the current system for funding the noise barriers was city funds and some ADOT funds.
Acceptance of Minutes for January 12, 2001
Action: Mr. Shultz deferred this agenda item to the March 1st Task Force meeting.
Adjourn
The meeting adjourned at 4:18 p.m.
MARTIN SHULTZ, Co-Chairperson
SHARON MEGDAL, Ph.D., Co-Chairperson
