The State of the System Report is a compilation of the physical inventory and status of the Maricopa County Department of Transportation’s infrastructure. It addresses roadway congestion, traffic safety, low volume road paving, bridges, and pavement conditions. Also, included are recommendations for future improvements within each of the infrastructure categories. The SOS report has been produced annually since 1998.

The result of an application to the Arizona Department of Transportation Planning Assistance for Rural Areas (PARA) Program to conduct a multimodal transportation study to address transportation issues in the community. The purpose of the study is to identify the most critical multimodal transportation infrastructure and service needs within the Picture Rocks study area and recommend a program of short-range (0-5 years), mid-range (6-10 years), and long-range (11-20 years) improvements.

Transportation excise tax money is statutorily restricted to street and highway purposes or transportation projects. Gila County demonstrated that it spent excise tax monies during calendar years 2009 through 2013 to address traffic safety and congestion issues and deteriorating road conditions. Also, in January 2014, the County completed the Gila County Transportation Study, which identified the most critical future transportation infrastructure needs and recommended projects to address those needs. We also determined that the County spent its excise tax monies solely for street and highway purposes or transportation projects as required by Arizona Revised Statutes §28-6392(B), and implemented all but one of our prior audit recommendations.

Though the Great Recession may be officially over, all is not well in Arizona. Three years after the collapse of a massive real estate “bubble,” the deepest economic downturn in memory exposed and exacerbated one of the nation’s most profound state fiscal crises, with disturbing implications for Arizona citizens and the state’s long-term economic health.

This brief takes a careful look at the Grand Canyon State’s fiscal situation, examining both Arizona’s serious cyclical budget shortfall—the one resulting from a temporary collapse of revenue due to the recession—as well as the chronic, longer-term, and massive structural imbalances that have developed largely due to policy choices made in better times. This primer employs a unique methodology to estimate the size of the state’s structural deficit and then explores the mix of forces, including the large permanent tax reductions, that created them. It also highlights some of the dramatic impacts these fiscal challenges are having on service-delivery as well as on local governments. The brief suggests some of the steps state policymakers must take to close their budget gaps over the short and longer term. First, it urges better policymaking, and prods leaders to broaden, balance, and diversify the state’s revenue base while looking to assure a long-haul balance of taxing and spending. And second, it recommends that Arizona improve the information-sharing and budgeting processes through which fiscal problems are understood—so they may ultimately be averted.