The Transportation and Infrastructure Subcommittee advanced a motion that would reallocate $26.7 million to the Street Transportation and Public Transit Departments on January 12. The reallocation of funds will now be brought before City Council for a final decision.
The Transit 2000 fund came from a sales tax approved by Phoenix voters in 2000. Money from the fund has provided the majority of the Public Transit Department’s budget. A smaller amount has gone toward the Street Transportation Department. The Transit 2000 fund is expected to be exhausted by the end of the 2016-17 fiscal year according to Ken Kessler, deputy director of the Phoenix Public Transit Department.
Prior to the passage of Proposition 104, a $55 million contingency fund consisting of money from the Transit 2000 fund was approved by City Council. If approved, the reallocation will allow the departments to begin spending the money on a number of projects promised in Proposition 104. Transportation 2050, approved by voters in August, will replace the Transit 2000 Fund.
An annual contingency fund for the Public Transit and Street Transportation Departments usually consists of around $10 million. According to Kessler, this fund is typically used for public transit emergencies.
The fund was larger this year in anticipation of the passage of Proposition 104. By making the fund larger, the Public Transit and Street Transportation Departments would have money for immediate use on projects outlined in the Transportation 2050 plan. Without the extra funds, those departments would have to wait until a new city budget was approved in June to commence work on the projects. Without the approval of voters on Proposition 104, the money would not have been touched.
Kessler believed that taxpayers would agree with the use of tax dollars.
“We just thought that voters would rather see their tax dollars be put to use fixing potholes and the like as opposed to having to wait six to eight months for a new budget to be approved,” Kessler said.
The last time a contingency fund was larger than normal was the 2008-2009 fiscal year, the year the Phoenix light rail system opened, according to Kessler.
Kessler told the committee that this would not increase the annual city budget.
“There is no overall impact to the city’s budget,” Kessler said. “It is just moving budgetary authority from the current Transit 2000 contingency over to the Transportation 2050 fund within the city’s budget.”
The Public Transit Department is receiving $14.2 million, which will go toward new projects like the new 50th Street light rail station, as well as a feasibility study for a potential 16th Street light rail station.
The Street Transportation Department is set to spend $11.3 million on concrete and asphalt work, according to Street Transportation Director Ray Dovalina. Dovalina said that he would use the remaining money to look at preliminary work for some of the Street Department’s Transportation 2050 projects.
District 4 Councilwoman Laura Pastor asked for more clear-cut uses of the money from the Street Departments.
“For transparency’s sake, I think it would be wise — as we’re transferring dollars — to put what these dollars are going to be used for so that citizens are aware,” Pastor said.
Contact the reporter at Daniel.Perle@asu.edu
