Governor’s Executive Budget invests in highway system maintenance

PHOENIX – Governor Hobbs’ Executive Budget proposal supports the Arizona Department of Transportation’s vision of safely connecting Arizonans and empowering the economy. Strategic investments will safeguard state highways and help rural Arizona communities compete for federal transportation grants while also supporting ADOT’s efforts to lay the groundwork for the transportation system of the future. 

“High-quality transportation improves the quality of life across our state not just by accommodating growth, but also by making Arizona a more desirable place to live, to start a business, to raise a family, to visit and so much more,” ADOT Director Jennifer Toth said. “Governor Hobbs’ budget protects our resources and infrastructure, while updating crucial technology to improve safety and efficiency.” 

The executive budget proposal includes an additional $15.8 million in ongoing funding to address the effect rising materials costs have had on ADOT’s critical mission of maintaining state highways. This consists of $11.4 million for highway maintenance activities and $4.4 million for surface treatments that extend the life of pavement. The cost of materials needed to perform highway maintenance increased 63.7% from fiscal year 2021 to fiscal year 2023, according to the National Highway Construction Cost Index.

Among other proposed maintenance investments, the executive budget includes $797,000 to help ADOT maintain 38 newly constructed lane miles across the state highway system. 

The Executive Budget also includes a one-time deposit of $13 million from the General Fund to the State Match Advantage for Rural Transportation (SMART) Fund administered by ADOT. This program helps ensure that municipalities and counties in Greater Arizona are competitive when seeking federal transportation grants. It helps cover the cost of developing and submitting grant proposals and reimburses matching funds required for grants, as well as design and engineering services expenses associated with grant proposals.

Since the SMART Fund’s creation in fiscal year 2023, the State Transportation Board has awarded $48.8 million through the program. Rural areas have leveraged an additional $138.6 million in competitive federal transportation grants by using these awards. More than 30 agencies have received funding through the SMART Fund. 

Among other transportation investments, Governor Hobbs’ Executive Budget includes the following: 

• An additional $200,000 to support ADOT’s continuing study of potential passenger rail service between the Phoenix area and Tucson. This adds to $3.5 million in one-time funding the Governor secured previously to support development of a service plan for this transformative project.

• To support tourism and economic development, $850,000 from the State Aviation Fund will cover state matching funds required to renovate and expand the terminal at Grand Canyon National Park Airport, which ADOT operates. Renovations will include a new airline gate that can accommodate 737-class aircraft. This is contingent on ADOT receiving an Airport Terminal Program grant from the Federal Aviation Administration.

• $6.9 million to replace aging modular facilities housing ADOT’s Little Antelope and Gray Mountain maintenance operations in northern Arizona while also providing space for use by the Arizona Department of Public Safety. This will enhance the state’s ability to address hazardous weather and road conditions during winter storms.

• A one-time investment of $7 million from the State Highway Fund to modernize and reopen an Avondale vehicle repair shop servicing not just ADOT vehicles and heavy equipment but vehicles used by other agencies. 

ADOT is responsible for planning, designing, constructing, maintaining and operating the state’s highway transportation system, which includes more than 7,000 miles of interstates, freeways and principal arterial roadways and more than 8,500 bridges. The Department also provides driver license and registration services, is responsible for commercial vehicle enforcement and registration compliance, operates the Grand Canyon National Park Airport and maintains the state fleet.

For more information on ADOT, please visit azdot.gov.