This report provides the findings and recommendations of an independent evaluation of the methodologies employed by the Arizona Department of Corrections in the preparation and application of its Operating Per Capita Cost Report and Private Prison Cost Model. The purpose of the Cost Report is to provide the average daily operating cost incurred by ADC during a fiscal year to incarcerate an inmate. Information has also been utilized to compare state versus private prison costs. This report and the evaluation upon which it is based were conducted and prepared at the Department's request by MAXIMUS, Inc.

The Arizona Department of Transportation was authorized in 1996 to administer a State Infrastructure Bank under a cooperative agreement with the Federal Highway Administration. The Highway Expansion and Extension Loan Program (HELP) was established. The financial statements present only the funds comprising the Fund and are not intended to present fairly the financial position or results of operations of the Department.

The HELP program is meant to be a funding tool to accelerate needed highway projects throughout the state. Board Funding Obligations are an important part of the HELP capitalization and the current stress on the State's General Fund has impacted our ability to use BFOs as a funding source for new loans. Though $140 million of BFOs are authorized by statute to capitalize the HELP, the State Treasurer was required to call all outstanding BFOs in April 2009. Consequently, the State Transportation Board and the Department have suspended the HELP program given the uncertainty of a long term funding source.