Public Transportation Division

State Transit Funding

LTAF II - Local Transportation Assistance Fund II

In 1998, the State Legislature passed House Bill 2565 called LTAF II, to assist counties and incorporated communities in Arizona with additional transportation funds based upon a tiered distribution formula during any fiscal year.  The fund initially permitted any transportation use in communities and counties outside Maricopa County, as well as those within the County under 50,000 in population.  In 2000, additional legislation was passed making the use of LTAF II funds “transit use only” (public transportation sponsored by a local government entity or special needs transportation) for jurisdictions allocated more than $2,500.  This legislative change also made it clearer that Indian Communities could engage in Intergovernmental Agreements with local jurisdictions receiving LTAF II allocations, in order to assist Tribal Governments with their local transit needs.  Similarly, private-non-profit agencies have been permitted to apply to local jurisdictions for assistance with their transit operations, effectively making them “second-tier” grant recipients.

Apache Junction Parks & Recreation van purchased with LTAF II funds

Over the past four years, the LTAF II has been funded by Powerball earnings which is the single determining factor funding LTAF II distributions from year to year.  Prior to 2003, the Vehicle License Tax (VLT) and the General Fund were the primary contributors.  In order to distribute funding in this category, the overall fund must exceed $31M annually and is capped at $18M during any FY.  The FY07 collection of Powerball earnings resulted in a $10.1M FY08 LTAF II Distribution.

If an annual distribution is made, preliminary allocations are made for each jurisdiction based on population but funding is not automatic.  To be eligible for these funds, local entities must apply for a grant with matching fund requirements through their appropriate Metropolitan Planning Organization (MPO), Council of Government (COG), or the Regional Public Transportation Authority (RPTA) for Maricopa County.  Following the application process, the Multimodal Planning Division (ADOT) instructs the State Treasurers Office to distribute the awarded funds to the local entities.

• LTAF II Introduction and Guidelines
• LTAF II Distribution (FY07 Collection)
• LTAF II Application

The LTAF II program manager is Mr. Matt Carpenter.

Documents are posted as they become available in PDF format, which requires Adobe Reader to view.