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Hello all,


RTAC and the broader transportation community lost a dear friend and champion last month with the passing of Gary Knight. Gary was a very prominent fixture in the Yuma community and member of the Yuma City Council and also played a pivotal role in statewide transportation policy. In addition to being a long- time member of the RTAC Board, Gary had just completed a six-year term on the State Transportation Board where he was the Chairman for 2023. I'm personally grateful for his service and to have known him as a long-time friend. He will be missed by many.


I would also like to congratulate and welcome back Sam Elters to the State Transportation Board. As the current Mohave County Manager, Sam will represent Greater Arizona very well on the Board. He is tremendously experienced and qualified, previously serving as ADOT's State Engineer. He briefly served on the Board representing the Maricopa County area before moving out of the District to take his leadership position in Mohave County. Congratulations and welcome back to the Board Sam!


Turning our attention to the State Capitol, visible activity on most legislation has slowed down considerably as leadership works more behind the scenes to reach a budget agreement. After several years of historical revenue surpluses, lawmakers will need to manage a deficit when enacting a budget for next year. The current year's deficit plus the projected one for next year totals roughly $1.3 billion. Lawmakers have expressed opposition to using transportation dollars to balance the budget. That bodes well for the Highway User Revenue Fund (HURF) and the unlikelihood of HURF raids.


In her budget proposal back in January, the Governor identified roughly $420 million in funding that was previously earmarked for various projects over the last couple of years that has not been expended yet. She proposed to redirect that funding to the State General Fund to help balance the budget with the intention to potentially restore that funding to those projects in later years when they are ready to advance. RTAC maintains our position of opposing any such "clawback" that would complicate or delay project delivery. While there has been activity on some of these projects since January, many are likely to be considered during the budget setting discussions. RTAC's position is outlined in the attached letter.


The need to address a deficit and the lack of available revenues is problematic for the RTAC priority project legislation this year. We will continue to advance this bill as it helps demonstrate to lawmakers the magnitude of under-investment in our infrastructure and the impacts from all of these priority projects that remain unfunded.


Another legislative priority that must be addressed prior to the end of session is the continuation of ADOT. Without legislative authority, the Department will cease to exist after June. Much of the conflict centers around efforts to include restrictions and prohibitions on ADOT operations. Most seem to be directed at concerns with federal transportation and regulatory laws. While there are many reforms to federal laws that RTAC supports, underlying this issue is the reality that federal funding dominates the revenues that feed into our highway construction program and compliance with those federal laws is needed to continue using that funding. RTAC supports a long-term, "clean" continuation of ADOT that will not impede the ability of the Department to maintain all of our federal funding eligibility.


As you can see from the attached bill matrix, there has been very little movement on the remaining transportation regular session bills. Don't expect that to change until a budget proposal is advanced and lawmakers are ready to wrap up all outstanding business and adjourn for the year. I'll keep you posted.


RTAC Clawback Opposition Letter


RTAC - ADOT Continuation Support Letter


2024 RTAC Transportation Bill Matrix May 18

Sincerely,
Kevin Adam,
Legislative Liaison
Rural Transportation Advocacy Council
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