This document is intended to give an overview of the Federal-Aid Program and its impacts on Arizona. There are four major sections in the report: (1) Overview of the Federal-Aid Program; (2) Arizona Federal funding highlights for the fiscal year; (3) Federal-aid Highway Program Characteristics; and (4) Federal-Aid Highway Program descriptions. The first section gives a general overview of how the Federal-Aid Program is financed, the authorization process and a discussion of the apportionment, allocation and obligation authority processes. The second section deals with Arizona Federal funding highlights the for fiscal year. The last two sections are devoted to characteristics of the core programs, including eligibility, limitations, apportionment formulas and descriptions of the funding categories.

Since 1986, the Arizona Department of Transportation has used a comprehensive regression-based econometric model to estimate Transportation Excise Tax revenues for Maricopa County. These revenues, which flow into the Regional Area Road Fund (RARF), are the major funding source for the Maricopa County Freeway Program. This document contains the official forecast of expected values for the Maricopa County Transportation Excise Tax as developed by the Arizona Department of Transportation in cooperation with the Maricopa Association of Governments, Valley Metro and Valley Metro Rail.

The Maricopa County Transportation Excise Tax, often referred to as the “1/2 cent sales tax” is levied upon business activities in Maricopa County, including retail sales, contracting, utilities, rental of real and personal property, restaurant and bar receipts, and other activities. Transportation excise tax revenues are deposited in the Maricopa County Regional Area Road Fund (RARF) which is administered by the Arizona Department of Transportation. These revenues were the principal source of funding for the Regional Freeway System in Maricopa County and were dedicated by statute to the purchase of right-of-way, design and construction of new freeways, widening of existing freeways and highways, improvements to the arterial street system, regional bus service and high capacity transit services such as light rail.

The State of Arizona taxes motor fuels and collects a variety of fees relating to the registration and operation of motor vehicles in the state. These collections include gasoline and use fuel taxes, motor carrier fees, vehicle license taxes, motor vehicle registration fees, and other miscellaneous fees. These revenues are deposited in the Arizona Highway User Revenue Fund and are then distributed to the cities, towns and counties of the State and to the State Highway Fund, which is administered by the Department. These taxes and fees represent a source of revenues available to the state for highway related expenses.

This study summarizes and analyzes the findings of a statewide survey conducted last year of samples of homeless individuals in the Phoenix and Tucson areas and across the state. The aim of this report is to join with other, ongoing efforts to develop effective policies concerning such issues as job training, treatment for the mentally ill and Arizona’s critical need for affordable housing. Hopefully, it will help politicians and policymakers talk more openly and productively about a pervasive social problem that is both glaringly obvious and largely invisible.

The Arizona Republic reported on a Jan. 10 panel discussion regarding Arizona's vulnerable giant data system called the Student Accountability Information System, or SAIS: Arizona's superintendent of schools, John Huppenthal, says the state's K-12 data system is on the "verge of collapse" and is seeking $35 million in state funding over the next two years to fix and improve outdated systems. "We figure we have 200 people in the department who are essentially full-time data wranglers," Huppenthal said. "It's like monks in the medieval ages copying stuff on paper." The state's K-12 data system was the focus of a panel discussion sponsored by Arizona State University's Morrison Institute for Public Policy. The nonpartisan research group released a report the same day calling the data system "antiquated" and "patched together." The report said the lack of a fully functioning system hampers the state's efforts to improve academic performance.