Every few years, the Arizona Legislature works out legislation to extend the Prop. 400 public transportation tax. The half-cent tax, which started in 1985 to pay for roads but now also includes public transit and light rail in Maricopa County, faces strong opposition every time it comes up for renewal. Although the legislature mostly ended its 2023 session on June 30 after finalizing the budget, it is reconvening briefly next week to consider the extension.
The Arizona Free Enterprise Club (AFEC) has issued multiple reports critical of renewing what it refers to as the Maricopa Association of Governments’ (MAG) “transit slush fund package.” AFEC observed in June that The Arizona Republic has been running numerous articles praising the renewal, which are “nothing more than recycled talking points from MAG and transit industry lobbyists attacking conservative lawmakers and critics (like the Club) for opposing a plan that slashes freeway funding and increases traffic congestion in the region.”
The legislature reconvenes on Monday to hash out the legislation. The proposed extension would last 20 years. The current extension expires in 2025. Governor Katie Hobbs vetoed a bill that Republicans agreed upon in June, which would have sent the sales tax extension to voters. She has been negotiating directly with the legislature on it.
AFEC noted The Republic accused Republicans of refusing to accept a “compromise plan” that made over 30 concessions, including reductions in light rail spending. However, “their compromise plan is no different than the plan vetoed by Governor Ducey last year.” The concession of taking light rail funding out of the plan “just shifts bus expenditures from municipalities to the regional tax, which then frees up city money to pay for the rail.”
The free-market group said MAG will not compromise, even though “transit ridership in Phoenix has collapsed.” It is only “still half of what it was pre-pandemic,” and there are “fewer people riding transit today than were riding in 2005, before 33% of the Prop 400 tax was diverted to transit,” despite the fact “the region grew in population by over 1.5 million residents.” Democratic Phoenix Mayor Kate Gallego chairs MAG.
MAG wants the bill to reflect its “Momentum Plan,” with over 40 percent of the funds going to mass transit, leaving less available for roads. AFEC said the plan hides “massive new spending for Green New Deal programs.”
AFEC said, “This multi-dimensional effort by climate alarmists, urban planning bureaucrats, corporations poised to financially benefit, and the social justice warrior academics and activists, aims to use transportation and land use to reorient the way the majority of people live.” The organization added sarcastically, “Obviously, the only kind of freeway MAG will consider building at this point is a bastardized version that limits capacity and slows speed, contrary to the whole point of a freeway.”
AFEC also warned of the fiscal consequences. “Virtually every metropolitan area with a large transit system is on the verge of bankruptcy and is seeking massive taxpayer bailouts,” the group said. Lawmakers submitted public records requests and discovered that the Valley Metro bus system is bankrupt.
The original tax adopted in 1985 funded only freeways. Now, one-third of it funds light rail and expanded bus operations.
The Arizona Freedom Caucus opposes the extension.
“Taxpayers shouldn’t be forced to fund a transit system like light rail that accommodates less than 1% of the Valley commuters,” State Senator Jake Hoffman (R-Queen Creek), the chair of the caucus, said last month. Hoffman said he would prefer sending the sales tax extension to voters to give them a choice.
After Hobbs vetoed the Republican-backed bill, six Valley mayors signed a letter pledging to take the extension to voters in 2024 if necessary. In addition to Gallego, the mayors included Democrat Corey Woods of Tempe and four mayors known for being moderate Republicans; John Giles of Mesa, Brigette Peterson of Gilbert, Kenn Weise of Avondale, and Republican Kevin Hartke of Chandler. Several other mayors spoke up, praising the sales tax extension. The Maricopa County Supervisors strongly support the tax.
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Rachel Alexander is a reporter at The Arizona Sun Times and The Star News Network. Follow Rachel on Twitter. Email tips to [email protected].
Photo “Phoenix Lightrail” by KINKISHARYO. CC BY 2.0.
