Republican leaders in the Arizona House and Senate have reached a deal with Democratic Gov. Katie Hobbs to put a proposal to increase the Maricopa County transportation tax by 0.5 cents to a vote when the legislature resumes Monday.

But a large clique of Republican lawmakers, known as the Arizona Liberal Caucus, remains adamantly opposed to plans to extend the tax, which has been in place for nearly 40 years, to voters. It finances a major expansion of the Phoenix area’s highway and road system and also helps fund public transit services, including light rail.

And even if the deal approved by Senate President Warren Petersen and House Speaker Ben Thoma with Capitol Media Services passes Congress and Mr. Hobbes signs it, voters will still vote to reject the tax on next year’s ballot. can be done.

If the so-called Proposition 400 extension fails at any of these stages, residents of 14 other Arizona counties will pay the price. That’s because without about $20 billion in tax increases expected between 2025 and 2045, cities and counties will have to compete with Maricopa County for limited state transportation funding.

House Majority Leader Lupe Contreras (D-Avondale) said he hadn’t seen details yet, but Democrats are expected to rally in favor of the deal.

They are closely aligned with 27 cities in the region, three tribes, some leaders in Pinal County belonging to a regional planning body called the Maricopa Government Association, which is pushing for Maricopa and the tax extension.

The MAG funded various transportation projects with taxpayers’ money, creating plans that were initially rejected by Republican lawmakers.

“The only thing we know is that the city and all the people working on this project are celebrating this project,” Contreras said. “People we’ve fought for have said it’s good.”

Mr Thomas said on Saturday that final details were still being worked out and he was reluctant to discuss details out of fear of jeopardizing an already-looking fragile deal.

Mr. Petersen presented a two-page summary of the agreement, showing a cut in travel allocations to 37% from a range of 40-45% over the duration of MAG’s plan. Highways and major roads account for 63% of the total, an increase that could reach $2 billion over the 20 years the new tax takes effect if voters approve it.

The agreement will prohibit excise taxes from being used to expand the region’s light rail system, reducing the total amount allocated to rail from 14% to just 3.5%, which will be used for major maintenance. It also bans the approved route of the 2.4-mile extension to the Capitol and shortens the MAG’s proposed 25-year tax term by five years.

The Arizona Freedom Caucus remains unsatisfied, tweeting that while the plan is still touted as a road improvement, nearly 40% goes to transit for a few.

The post reads, “Clearly no vote.”

A MAG spokesperson said the group supports the basic agreement outline but declined to comment further as discussions on the final bill’s language are ongoing. And Christian Slater, assistant governor’s press secretary, said he wouldn’t give details.

Parliament is expected to adjourn for the rest of the year after its session on Monday.

The battle to extend the tax hike is now in its second year.

Lawmakers last year approved the MAG’s plan on how to allocate tax revenues to highways, major roads, transportation, air quality and other programs, while the then governor last year approved the MAG’s plan. Doug Ducey vetoed this. The move surprised supporters and came after a low-tax group called the Arizona Free Enterprise Club urged Republican governors to reject MAG’s plans.

This year, Thoma, Petersen and members of the Freedom Caucus called for a drastic change in the plans MAG had worked out with its members. Republicans end up passing their own plan without Democrat backing, even though regional planning groups and Mr. Hobbes entered negotiations on behalf of the MAG at the last minute and many adjustments were agreed. is what happened.

It shifted more money to highways and highways, cut transportation spending to just 28% of future tax revenues, and banned any use of excise tax to expand the local light rail system, but this is new. The same goes for planning.

Mr. Hobbes promptly vetoed last month, leaving the fate of the plan to extend the tax hike up in the air as the Republican-led House and Senate entered an unprecedented seven-week recess. Some leaders in the area have started talking about voter initiatives to repeal a law that requires only Maricopa County to get congressional approval to put a transportation tax on the ballot.

Mr. Thomas, Mr. Petersen and others believe that light rail is a lot of money that costs a lot of money, and that taxpayers in the county shouldn’t have to pay for extensions that don’t benefit them. A plan to extend the railroad from downtown Phoenix to the state capitol was particularly ridiculed, and they vowed to block the plan.

The main difference in the new contract is that it no longer splits the voting questions into two parts, which for Hobbes and MAG jeopardized the whole plan, which was not a starter. Other items were also tweaked, slightly lowering the overall tax rate needed to win the support of some Republicans.

As with the veto plan, the agreement would force the MAG to move the Capitol extension at least a short distance from the many state buildings that are crowded with Arizona employees, and if the extension is built. Convenience for commuters will suffer. This proposed route is already paid for by current taxes, federal funds, and cash from the City of Phoenix.

Subsequent expansion work is planned to continue west from the Capitol, running along the Interstate 10 median to 79th Street, ending at the Desert Sky Mall and the Actin Pavilion.

The new agreement also limits air quality programs, and Mr. Petersen fears the funds could be used to curb the use of private cars, paving unpaved roads and increasing the use of street sweepers. Funds are made available for purchases only. And like the vetoed plan, any project must reduce congestion and not increase travel time.

There will also be new rules mandating bus routes bring in more money, and Congress will get a new seat on MAG’s board of directors.

Senator Mitzi Epstein (D, Tempe), who leads the Democratic Party in the House, said he would have to look at the wording of the bill and then decide whether the MAG could still implement the transportation plan that cities in the region unanimously adopted. Stated. If she can do that, she said, she will win the support of Democrats.

A wildcard not featured in the two-page summary provided by Petersen is the fate of the city’s ban on housing and apartment rental taxes, which Hobbes vetoed earlier this year. The new version passed the House and Senate on June 13, but remains on Petersen’s desk despite the court’s ruling that the bill must be sent “immediately” to the governor. remains.

House Democratic Leader Contreras said Hobbes’ signing of the rental tax ban “maybe part of the overall package.”

When asked about that part of the contract, Mr. Petersen did not respond.

For more information, Shaw spoke with KJZZ political editor Ben Giles.

Key details of transit tax set for Monday’s debate

where the money goes

• Expressway 40.5%
• 22.5% on major highways and intersections
• 37% used for transit, 3.5% of which for major light rail upgrades
• 0% for light rail extensions

limit

• Intersection improvements must reduce vehicle congestion, reduce travel times, or improve safety
• Funds to meet federal air quality requirements can only be used to pave dirt roads and purchase street sweepers.
• Don’t fund trails, bicycles, or pedestrian infrastructure unless it’s adjacent to a road or driveway
• Freeway lane reductions or restrictions that increase vehicle congestion or travel time are not permitted

cost recovery

• Public transport must recover at least 10% of their costs from fare revenues from 2027, eventually increasing to 20% by 2031.
• Cities with poor performance on bus routes will need to abolish bus routes, raise fares, or cover the difference with their own funds.

Other conditions

• Congress may appoint four members to the Maricopa Government Association Board of Directors.the governor gets it
• Tax only lasts 20 years
• Preemptive measures by states, cities, or towns to limit or limit the sale or use of vehicles with internal combustion engines

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