How are transportation improvements funded?
Four major sources of transportation revenues include federal, state, regional and local funding. Federal funds are made available though the Arizona Department of Transportation (ADOT) to the region for local government projects. State funds, known as HURF (Highway User Revenue Fund) are distributed to ADOT, the Arizona Department of Public Safety, the cities, the counties and regional transportation organizations such as PAG. Regional funds include the voter-approved Regional Transportation Authority revenue source. Local sources of funds may include development impact fees, construction sales taxes or a general sales tax. Local jurisdictions also may dedicate general funds for transportation, and/or request exactions from developers to offset the cost of transportation improvements. Projects that use federal, state or regional funds must be included in the PAG regional Transportation Improvement Program (TIP).