Extra $15M Proposed for Arizona DOT Highway Work

The executive budget recently proposed by Governor Katie Hobbs (D) seeks to provide an extra $15.8 million to the Arizona Department of Transportation to address the impact of rising material costs on statewide highway work.

[Above photo by Arizona DOT]

That additional funding consists of $11.4 million for highway maintenance activities and $4.4 million for surface treatments that extend the life of pavement as the cost of materials needed to perform highway maintenance increased 63.7 percent from fiscal year 2021 to FY 2023, according to the National Highway Construction Cost Index.

Jennifer Toth. Photo by Arizona DOT.

“High-quality transportation improves the quality of life across our state not just by accommodating growth, but also by making Arizona a more desirable place to live, to start a business, to raise a family, to visit and so much more,” noted Jennifer Toth, Arizona DOT director, in a statement. “Governor Hobbs’ budget protects our resources and infrastructure, while updating crucial technology to improve safety and efficiency.”

Among other proposed maintenance investments, the governor’s executive budget includes $797,000 to help Arizona DOT maintain 38 newly constructed lane miles across the state highway system. It also includes a one-time deposit of $13 million from the general fund to the State Match Advantage for Rural Transportation or “SMART” fund administered by Arizona DOT; a program that helps municipalities and counties in Greater Arizona compete for federal transportation grants.

SMART funds help cover the cost of developing and submitting grant proposals and reimburses matching funds required for grants, as well as design and engineering service expenses associated with grant proposals, the agency said.

Among other transportation investments, the governor’s executive budget includes: 

  • An additional $200,000 to support Arizona DOT’s continuing study of potential passenger rail service between the Phoenix area and Tucson. This adds to $3.5 million in one-time funding previously secured to support development of a service plan for this transformative project, the agency said.
  • To support tourism and economic development, $850,000 from the State Aviation Fund will cover state matching funds required to renovate and expand the terminal at Grand Canyon National Park Airport, which Arizona DOT operates; renovations will include a new airline gate that can accommodate Boeing 737-class commercial aircraft. This is contingent on Arizona DOT receiving an Airport Terminal Program grant from the Federal Aviation Administration, the agency said.
  • $6.9 million to replace aging modular facilities housing Arizona DOT’s Little Antelope and Gray Mountain maintenance operations in northern Arizona while also providing space for use by the Arizona Department of Public Safety. This will enhance the state’s ability to address hazardous weather and road conditions during winter storms, the agency said.
  • A one-time investment of $7 million from the State Highway Fund to modernize and reopen an Avondale vehicle repair shop servicing not just Arizona DOT vehicles and heavy equipment but vehicles used by other agencies. 
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