How Low Will It Go? Arizona Bracing For Less Highway Revenue
Highway construction and street improvement projects could hit roadblocks due to COVID-19.
The state uses the fund for highway projects and sends hundreds of millions to counties, cities and towns to help with street projects. For example, in fiscal year 2019-20, Phoenix expected to get $145.6 million.
According to the Arizona Department of Transportation, gas tax revenues in May were 38.1% lower than May 2019. Vehicle license tax revenues dropped 23.7% during the same time period.
During a Tuesday meeting of the Maricopa Association of Governments Economic Development Committee, MAG Executive Director Eric Anderson said state and regional planners will work on forecasting models to try to get a sense of the long-range impact.
MAG serves as the regional planning council for the metro area with a focus on transportation. Anderson said telecommuting will have a tremendous impact.
“We think that before this happened about 8% of our workforce telecommuted on any given day,” he said. “If that doubles, maybe go up to 15 or 20% that has a big impact on our system.”