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.

State trust lands are among the greatest public assets in Arizona’s portfolio. Set aside at statehood, the Arizona State Land Department manages more than 9 million acres of trust lands on behalf of 14 beneficiaries. The largest of which by far is Arizona Public Education K through 12.The mission of the Land Department is to maximize revenues from these trust lands. In FY 2005, state trust lands generated $115 million for all beneficiaries, of which $101 million was designated to support public K-12 schools.These amounts are increasing rapidly as more state trust land becomes attractive for development in Arizona’s urban areas.

The parcel discussed in this report, “Superstition Vistas,” stands out as the jewel among Arizona’s trust lands. Not only is it situated in the path of metro Phoenix growth, but it also borders thousands of acres of public land managed by the Tonto National Forest and U.S. Bureau of Land Management. Estimates of its total value run well into the billions of dollars.

"The Treasure of the Superstitions" sets the stage for a continuing dialogue about the potential for Superstition Vistas, and indeed, all of Arizona’s trust lands. We look forward to listening to and working with our beneficiaries, citizens, counties, municipalities, real estate businesses, and other interested parties to make the most of Arizona’s “treasure.”

This report follows The Coming of Age report produced in 2002 by some of the principals involved in this project, and published by St. Luke’s Health Initiatives. That research showed that Arizona had much to do to get ready for the baby boomer age wave. The results of Unlocking Resilience from new survey data, interviews, and secondary research indicates Arizona still has much to do to prepare for aging and must make concrete policy decisions about aging.

Raising Arizona was the challenge of the 20th century. Sustaining Arizona is now the challenge of the 21st. A crucial part of that task is not just understanding today’s knowledge economy, but mastering it.
If the state makes this fundamental transition, the brief history of Arizona’s future will read simply: They succeeded in the second stage. Human capital took its rightful place as a chief component of competitiveness. As a result, the story will go, Arizona moved into the top ranks of economic leadership after years in the second tier. Equity and prosperity resulted too. Most important, the state was ready for the next stage of competition. This happy ending for Arizona, of course, has been envisioned repeatedly over time. And in fact, a variety of human capital policies and programs to achieve it are in place. However, many would say that human capital is an area of unfinished business for Arizona. The Arizona Minority Education Policy Analysis Center (AMEPAC) developed "To Learn and Earn" to highlight the issues and asked Morrison Institute for Public Policy at Arizona State University to support the effort with research and analysis. In turn, AMEPAC will present the issues to Arizona stakeholders for their feedback. This process will kick off a multi-partner series of policy action projects. The first results will be presented in November 2009 at the next human capital conference presented by the Arizona Commission for Postsecondary Education.

This research study clearly articulates the critical need for industry to work in conjunction with educators in order to develop an emphasis on STEM (Science, Technology, Engineering and Math) in our schools systems. This partnership is essential for creating a competitive global workforce in Arizona. Aggressive action must be taken now, to fuel the growth of our economy with a properly educated workforce that will improve our standard of living. Changing our culture to celebrate innovation requires a comprehensive plan and collaboration between business, academia and our government. We have an obligation to our children and our country to support this initiative with our time, funds and energy.