MAINTENANCE WILL BE TOP PRIORITY
IN THE NEXT FIVE YEARS.

IN THE NEXT FIVE YEARS.
ROUGHLY, THE MONEY WE HAVE PUT

ROUGHLY, THE MONEY WE HAVE PUT
INTO THE TRANSPORTATION SYSTEM

INTO THE TRANSPORTATION SYSTEM
IS ABOUT $8.5 BILLION.

IS ABOUT $8.5 BILLION.
WE FEEL IT IS OUR DUTY TO

WE FEEL IT IS OUR DUTY TO
PROTECTION THAT.

PROTECTION THAT.
>> NOW FOR THE BAD NEWS, THERE

>> NOW FOR THE BAD NEWS, THERE
IS A NEED FOR NEW FUNDING

IS A NEED FOR NEW FUNDING
SOURCES.

SOURCES.
>> THE WAY OF FUNDING IT THROUGH

>> THE WAY OF FUNDING IT THROUGH
THE GAS TAX IS NO LONGER

THE GAS TAX IS NO LONGER
WORKING.

WORKING.
IT CAN'T KEEP UP WITH THE

IT CAN'T KEEP UP WITH THE
CHANGES WE HAVE MADE IN OUR

CHANGES WE HAVE MADE IN OUR
VEHICLES.

VEHICLES.
WE HAVE TO FIND A DIFFERENT WAY

WE HAVE TO FIND A DIFFERENT WAY
OF FUNDING.

OF FUNDING.
>> OUR TRANSPORTATION SYSTEM.

>> OUR TRANSPORTATION SYSTEM.
IT'S ARIZONA WEEK.

IT'S ARIZONA WEEK.
>> MADE POSSIBLE IN PART BY A

>> MADE POSSIBLE IN PART BY A
GRANT FROM --

GRANT FROM --
THANK YOU FOR YOUR CONTINUED

THANK YOU FOR YOUR CONTINUED
SUPPORT.

SUPPORT.
ONCE AGAIN, YOUR MODERATOR --

ONCE AGAIN, YOUR MODERATOR --
>> EVERY YEAR STATE

>> EVERY YEAR STATE
TRANSPORTATION OFFICIALS UPDATE

TRANSPORTATION OFFICIALS UPDATE
PRY YORTS BASED ON NEEDS AND

PRY YORTS BASED ON NEEDS AND
FUNDING.

FUNDING.
THE STATE IS SEEKING CUTS OF

THE STATE IS SEEKING CUTS OF
$350 MILLION FROM PREVIOUSLY

$350 MILLION FROM PREVIOUSLY
PLANNED PROJECTS BY 2017.

PLANNED PROJECTS BY 2017.
WE LOOK AT A SERIES OF ISSUES IN

WE LOOK AT A SERIES OF ISSUES IN
INTERVIEWS STARTING WITH THE

INTERVIEWS STARTING WITH THE
DEPARTMENT OF TRANSPORTATION

DEPARTMENT OF TRANSPORTATION
DIRECTOR.

DIRECTOR.
>> YOUR AGENCY ANNOUNCED YOUR

>> YOUR AGENCY ANNOUNCED YOUR
AGENCY IS UNDERGOING CHANGES IN

AGENCY IS UNDERGOING CHANGES IN
HOW TO PRIORITIES FOR HIGHWAY.

HOW TO PRIORITIES FOR HIGHWAY.
>> ARIZONA HAS BEEN A STATE OF

>> ARIZONA HAS BEEN A STATE OF
INFRASTRUCTURE.

INFRASTRUCTURE.
NOW OUR REVENUES ARE SHRINKING

NOW OUR REVENUES ARE SHRINKING
AND WE ARE NO LONGER ABLE TO

AND WE ARE NO LONGER ABLE TO
EXPAND AT THE RATES THAT WE HAD

EXPAND AT THE RATES THAT WE HAD
PREVIOUSLY DONE SO.

PREVIOUSLY DONE SO.
ESSENTIALLY WE ARE ADOPTING A

ESSENTIALLY WE ARE ADOPTING A
FIX IT FIRST PROGRAM TO BE SURE

FIX IT FIRST PROGRAM TO BE SURE
WE MAINTAIN AND PRESERVE THE

WE MAINTAIN AND PRESERVE THE
INFRASTRUCTURE WE HAVE ON THE

INFRASTRUCTURE WE HAVE ON THE
GROUND.

GROUND.
>> I WOULD LIKE TO RETURN TO THE

>> I WOULD LIKE TO RETURN TO THE
MAINTENANCE ISSUES IN A MINUTE

MAINTENANCE ISSUES IN A MINUTE
OR TWO, BUT FIRST, THE STATE WE

OR TWO, BUT FIRST, THE STATE WE
ARE IN, IT'S A FINANCIAL ISSUE.

ARE IN, IT'S A FINANCIAL ISSUE.
>> THERE ARE THREE SOURCES.

>> THERE ARE THREE SOURCES.
ONE THAT VIEWERS ARE PROBABLY

ONE THAT VIEWERS ARE PROBABLY
MOST FAMILIAR WITH, GASOLINE

MOST FAMILIAR WITH, GASOLINE
TAX.

TAX.
THERE IS A STATE AND FEDERAL

THERE IS A STATE AND FEDERAL
TAX.

TAX.
THERE IS ALSO A VEHICLE LICENSE

THERE IS ALSO A VEHICLE LICENSE
TAX WHICH YOU PAY AT THE TIME OF

TAX WHICH YOU PAY AT THE TIME OF
REGISTRATION.

REGISTRATION.
THOSE ARE PROBABLY THE TWO

THOSE ARE PROBABLY THE TWO
BIGGEST SOURCES AND THEN THERE

BIGGEST SOURCES AND THEN THERE
ARE FEDERAL FUNDS FROM THE

ARE FEDERAL FUNDS FROM THE
FEDERAL GASOLINE TAXES COLLECTED

FEDERAL GASOLINE TAXES COLLECTED
AND OTHER MINOR FEES PEOPLE PAY.

AND OTHER MINOR FEES PEOPLE PAY.
>> WHAT DO THOSE ADD UP TO?

>> WHAT DO THOSE ADD UP TO?
>> THIS FISCAL YEAR PROBABLY

>> THIS FISCAL YEAR PROBABLY
$1.2 BILLION.

$1.2 BILLION.
>> NOW WE ARE SEEING THAT POOL

>> NOW WE ARE SEEING THAT POOL
OF MONEY SHRINK FOR A VARIETY OF

OF MONEY SHRINK FOR A VARIETY OF
REASONS.

REASONS.
WOULD YOU TALK ABOUT THAT?

WOULD YOU TALK ABOUT THAT?
>> CERTAINLY.

>> CERTAINLY.
LET ME TAKE GASOLINE TAX FIRST.

LET ME TAKE GASOLINE TAX FIRST.
ARIZONA'S GASOLINE TAX RIGHT

ARIZONA'S GASOLINE TAX RIGHT
SIDE NOT INDEXED WHICH MEANS

SIDE NOT INDEXED WHICH MEANS
THEY ARE SUBJECT TO INFLATION.

THEY ARE SUBJECT TO INFLATION.
THE RATE WAS SET IN 1992, AND IT

THE RATE WAS SET IN 1992, AND IT
HAS NOT BEEN RAISED SINCE.

HAS NOT BEEN RAISED SINCE.
WHEN YOU FACTOR IN INFLATION

WHEN YOU FACTOR IN INFLATION
BECAUSE THE NEW FEDERAL CAFE

BECAUSE THE NEW FEDERAL CAFE
STANDARDS IN 2015 IS 55 MILES

STANDARDS IN 2015 IS 55 MILES
PER GALLON AND THE FACT THAT

PER GALLON AND THE FACT THAT
PEOPLE ARE TURNING TO

PEOPLE ARE TURNING TO
ALTERNATIVE FUELS TO POWER

ALTERNATIVE FUELS TO POWER
VEHICLES, GAS CONSUMPTION HAS

VEHICLES, GAS CONSUMPTION HAS
BEEN SHRINKING.

BEEN SHRINKING.
THE LICENSED DRIVER, WE SAW THAT

THE LICENSED DRIVER, WE SAW THAT
FALLING WITH THE ECONOMY IN 2007

FALLING WITH THE ECONOMY IN 2007
AND 2008.

AND 2008.
ARIZONANS WERE BUYING NEARLY

ARIZONANS WERE BUYING NEARLY
HALF A MILLION CARS A YEAR.

HALF A MILLION CARS A YEAR.
NOW THEY ARE BUYING 50% OF THAT.

NOW THEY ARE BUYING 50% OF THAT.
THAT, COUPLED WITH THE FACT THAT

THAT, COUPLED WITH THE FACT THAT
VEHICLE LICENSE TAX DEPREESH

VEHICLE LICENSE TAX DEPREESH
YATES EVERY YEAR DEPLETES THE

YATES EVERY YEAR DEPLETES THE
MONEY.

MONEY.
AND THE THIRD SOURCE WE HAD

AND THE THIRD SOURCE WE HAD
MENTIONED, THE FEDERAL FUNDS, WE

MENTIONED, THE FEDERAL FUNDS, WE
ARE SEEING BECAUSE OF THE

ARE SEEING BECAUSE OF THE
HIGHWAY TRUST FUND PROBLEMS ON

HIGHWAY TRUST FUND PROBLEMS ON
THE FEDERAL LEVEL, WE SEE LESS

THE FEDERAL LEVEL, WE SEE LESS
FEDERAL APPROPRIATIONS TO THE

FEDERAL APPROPRIATIONS TO THE
STATES.

STATES.
>> THE ANSWER SEEMS SIMPLE,

>> THE ANSWER SEEMS SIMPLE,
RAISE THE GASOLINE TAX OR RAISE

RAISE THE GASOLINE TAX OR RAISE
THE INDEX TO INFLAITION BUT IT

THE INDEX TO INFLAITION BUT IT
ISN'T THAT SIMPLE.

ISN'T THAT SIMPLE.
>> GASOLINE TAX ISN'T THE

>> GASOLINE TAX ISN'T THE
WORKHORSE IT USED TO BE.

WORKHORSE IT USED TO BE.
IT WAS ESTABLISHED BACK IN THE

IT WAS ESTABLISHED BACK IN THE
1950s TO HELP BUILD THE

1950s TO HELP BUILD THE
INTERSTATE SYSTEM AND THAT

INTERSTATE SYSTEM AND THAT
FUNDING TOOL WORKED PRETTY WELL

FUNDING TOOL WORKED PRETTY WELL
THEN.

THEN.
BUT YOU CAN'T TAKE A 1950s MODEL

BUT YOU CAN'T TAKE A 1950s MODEL
INTO THE NEW CENTURY AND EXPECT

INTO THE NEW CENTURY AND EXPECT
THAT GASOLINE TAX WITH THE FUEL

THAT GASOLINE TAX WITH THE FUEL
ECONOMY AND THE FACT THAT THE

ECONOMY AND THE FACT THAT THE
STATE FAIR FROM THAT.

STATE FAIR FROM THAT.
>> ARE THERE ANY STATES LOOKING

>> ARE THERE ANY STATES LOOKING
AT ALTERNATIVE FUNDING FOR

AT ALTERNATIVE FUNDING FOR
TRANSPORTATION OR WHAT DO YOU

TRANSPORTATION OR WHAT DO YOU
SEE AS ALTERNATIVES TO WHAT WE

SEE AS ALTERNATIVES TO WHAT WE
DO IN ARIZONA NOW.

DO IN ARIZONA NOW.
>> I THINK WE WILL LOOK AT A

>> I THINK WE WILL LOOK AT A
VARIETY OF DIFFERENT FUNDING

VARIETY OF DIFFERENT FUNDING
SOURCES AND THEY WILL HAVE TO BE

SOURCES AND THEY WILL HAVE TO BE
DIVERSE.

DIVERSE.
WHAT WE HAVE SEEN IS THAT

WHAT WE HAVE SEEN IS THAT
BECAUSE OF THE ECONOMY AND WHAT

BECAUSE OF THE ECONOMY AND WHAT
IT DOES, BOTH THE VEHICLE

IT DOES, BOTH THE VEHICLE
LICENSE TAX AND GAS TAX, THAT

LICENSE TAX AND GAS TAX, THAT
THOSE FUNDS ARE NOT NECESSARILY

THOSE FUNDS ARE NOT NECESSARILY
SOMETHING WE CAN COUNT ON TO

SOMETHING WE CAN COUNT ON TO
WEATHER THROUGH GOOD TIMES AND

WEATHER THROUGH GOOD TIMES AND
BAD.

BAD.
SO WHAT SOME STATES HAVE BEGUN

SO WHAT SOME STATES HAVE BEGUN
TO EXPLORE, SUCH AS OREGON AND

TO EXPLORE, SUCH AS OREGON AND
WASHINGTON STATE, THEY HAVE BEEN

WASHINGTON STATE, THEY HAVE BEEN
RUNNING SOME PILOT VEHICLES ON

RUNNING SOME PILOT VEHICLES ON
TRAVEL TAX.

TRAVEL TAX.
IN ESSENCE YOU PAY A CERTAIN

IN ESSENCE YOU PAY A CERTAIN
AMOUNT BASED ON THE NUMBER OF

AMOUNT BASED ON THE NUMBER OF
VEHICLES YOU DRIVE.

VEHICLES YOU DRIVE.
THAT HAS BEEN LOOKED AT BY A

THAT HAS BEEN LOOKED AT BY A
NUMBER OF STATES AND ACROSS THE

NUMBER OF STATES AND ACROSS THE
COUNTRY.

COUNTRY.
THAT'S ONE POSSIBLE SOLUTION.

THAT'S ONE POSSIBLE SOLUTION.
OTHER STATES HAVE GONE TO A

OTHER STATES HAVE GONE TO A
COMBINATION OF RAISING GASOLINE

COMBINATION OF RAISING GASOLINE
TAXES, USING PERHAPS SOME SORT

TAXES, USING PERHAPS SOME SORT
OF SALES TAX OR COMBINATION OF

OF SALES TAX OR COMBINATION OF
DIFFERENT TYPES OF VEHICLE

DIFFERENT TYPES OF VEHICLE
REGISTRATION FEES.

REGISTRATION FEES.
>> SO THE REALITY IS THAT

>> SO THE REALITY IS THAT
FUNDING IS AN ISSUE.

FUNDING IS AN ISSUE.
WHAT DO YOU SEE AS FAR AS

WHAT DO YOU SEE AS FAR AS
CHANGES IN THE FUNDING FORMULA

CHANGES IN THE FUNDING FORMULA
GOES?

GOES?
>> WELL, I THINK IN ARIZONA

>> WELL, I THINK IN ARIZONA
THERE IS A LOT OF DISCUSSION

THERE IS A LOT OF DISCUSSION
BASED ON THE FACT THAT THE STATE

BASED ON THE FACT THAT THE STATE
IS REALLY AT A PIVOTAL POINT

IS REALLY AT A PIVOTAL POINT
BASED ON THE TRADE AND ECONOMY

BASED ON THE TRADE AND ECONOMY
AND THE FACT PEOPLE WANT GOOD

AND THE FACT PEOPLE WANT GOOD
JOBS AND ECONOMY.

JOBS AND ECONOMY.
THE TRANSPORTATION SYSTEM IS

THE TRANSPORTATION SYSTEM IS
CENTRAL TO HAVING THAT.

CENTRAL TO HAVING THAT.
I THINK THERE IS A LOT OF

I THINK THERE IS A LOT OF
DISCUSSION ABOUT WHETHER

DISCUSSION ABOUT WHETHER
GASOLINE TAX IS THE APPROPRIATE

GASOLINE TAX IS THE APPROPRIATE
MECHANISM, WHETHER A VEHICLE

MECHANISM, WHETHER A VEHICLE
MILES TRAVELED IS APPROPRIATE.

MILES TRAVELED IS APPROPRIATE.
I KNOW SENATOR FARLEY HAS

I KNOW SENATOR FARLEY HAS
CREATED A BILL.

CREATED A BILL.
>> WHEN YOU HAVE TOLD

>> WHEN YOU HAVE TOLD
LEGISLATORS WHAT YOU ARE DOING

LEGISLATORS WHAT YOU ARE DOING
AND HOW YOU ARE CHANGING

AND HOW YOU ARE CHANGING
PRIORITIES, WHAT KIND OF

PRIORITIES, WHAT KIND OF
REACTION DID YOU GET FROM THEM?

REACTION DID YOU GET FROM THEM?
>> I THINK THEY UNDERSTAND,

>> I THINK THEY UNDERSTAND,
BECAUSE I THINK THE LEDGE LATD

BECAUSE I THINK THE LEDGE LATD
TO

TO
LEGISLATURE HAS BEEN AT THE

LEGISLATURE HAS BEEN AT THE
FOREFRONT OF DECLINING REVENUES.

FOREFRONT OF DECLINING REVENUES.
THERE HAVE BEEN A LOT OF TOUGH

THERE HAVE BEEN A LOT OF TOUGH
QUESTIONS IN FUNDING ISSUES.

QUESTIONS IN FUNDING ISSUES.
THERE IS UNDERSTANDING ON THEIR

THERE IS UNDERSTANDING ON THEIR
PART, BUT THEY ARE CAUTIOUS

PART, BUT THEY ARE CAUTIOUS
ABOUT WHAT KIND OF FUNDING

ABOUT WHAT KIND OF FUNDING
SOURCES WE MAY UTILIZE IN THE

SOURCES WE MAY UTILIZE IN THE
FUTURE AND WHETHER THOSE WOULD

FUTURE AND WHETHER THOSE WOULD
BE SOMETHING THEY WOULD ENACT

BE SOMETHING THEY WOULD ENACT
INTO LAW.

INTO LAW.
>> LET'S TALK ABOUT THOSE

>> LET'S TALK ABOUT THOSE
MAINTENANCE ISSUES.

MAINTENANCE ISSUES.
WHAT IS INVOLVED THERE AS YOU

WHAT IS INVOLVED THERE AS YOU
MAKE THIS CHANGE FROM EXPANSION,

MAKE THIS CHANGE FROM EXPANSION,
AS YOU CALL IT, TO MUCH MORE

AS YOU CALL IT, TO MUCH MORE
EMPHASIS ON MAINTENANCE OF

EMPHASIS ON MAINTENANCE OF
ROADS?

ROADS?
>> WELL, I THINK IF YOU ARE

>> WELL, I THINK IF YOU ARE
TALKING IN LAY MILES, WE

TALKING IN LAY MILES, WE
PROBABLY HAVE 27,000 LANE MILES

PROBABLY HAVE 27,000 LANE MILES
OF HIGHWAY SYSTEM TO TAKE CARE

OF HIGHWAY SYSTEM TO TAKE CARE
OF.

OF.
IT IS AN EXTENSIVE SYSTEM AND WE

IT IS AN EXTENSIVE SYSTEM AND WE
HAVE A VARIED WEATHER SYSTEM IN

HAVE A VARIED WEATHER SYSTEM IN
ARIZONA.

ARIZONA.
THERE IS THE ISSUE OF THAT.

THERE IS THE ISSUE OF THAT.
BUT WHAT IT COMES BACK TO IS THE

BUT WHAT IT COMES BACK TO IS THE
FACT THAT 76% OF OUR PROGRAM

FACT THAT 76% OF OUR PROGRAM
ROUGHLY USED TO BE AN EXPANSION

ROUGHLY USED TO BE AN EXPANSION
OF THE SYSTEM.

OF THE SYSTEM.
NOW WE ARE SEEING ABOUT THAT

NOW WE ARE SEEING ABOUT THAT
SAME PERCENTAGE GOING INTO

SAME PERCENTAGE GOING INTO
MAINTENANCE IN ORDER TO PRESERVE

MAINTENANCE IN ORDER TO PRESERVE
THE INVESTMENT ON THE GROUND.

THE INVESTMENT ON THE GROUND.
ROUGHLY, THE INVESTMENT WE HAVE

ROUGHLY, THE INVESTMENT WE HAVE
PUT INTO THE TRANSPORTATION

PUT INTO THE TRANSPORTATION
SYSTEM HERE IN ARIZONA, IT'S

SYSTEM HERE IN ARIZONA, IT'S
ABOUT 18.5 BILLION FOR THE

ABOUT 18.5 BILLION FOR THE
HIGHWAY SYSTEM.

HIGHWAY SYSTEM.
WE FEEL IT IS OUR RESPONSIBILITY

WE FEEL IT IS OUR RESPONSIBILITY
TO THE TAXPAYERS TO PROTECT THAT

TO THE TAXPAYERS TO PROTECT THAT
INVESTMENT.

INVESTMENT.
>> NOW TO HOW WE FUND HIGHWAYS

>> NOW TO HOW WE FUND HIGHWAYS
AND ROADS.

AND ROADS.
WE HAVE A REPRESENTATIVE AND A

WE HAVE A REPRESENTATIVE AND A
PRESCOTT REPUBLICAN.

PRESCOTT REPUBLICAN.
THE STATE IS IN THE MIDDLE OF

THE STATE IS IN THE MIDDLE OF
UPDATING THEIR FUNDING PLAN.

UPDATING THEIR FUNDING PLAN.
THERE IS NOT ENOUGH FUNDS TO

THERE IS NOT ENOUGH FUNDS TO
MEET THE PROJECT BECAUSE THE

MEET THE PROJECT BECAUSE THE
FUNDING FORMULA HASN'T CHANGED

FUNDING FORMULA HASN'T CHANGED
IN DECADES.

IN DECADES.
DO YOU SEE A NEED TO CHANGE

DO YOU SEE A NEED TO CHANGE
THAT?

THAT?
>> ABSOLUTELY.

>> ABSOLUTELY.
THE FORMULA IS INADEQUATE.

THE FORMULA IS INADEQUATE.
WE HAVE HAD THE 19 CENTS GAS TAX

WE HAVE HAD THE 19 CENTS GAS TAX
FOR ALMOST 25 YEARS.

FOR ALMOST 25 YEARS.
THE SITUATION WITH OUR CARS

THE SITUATION WITH OUR CARS
BEING MORE FUEL ECONOMY DRIVEN,

BEING MORE FUEL ECONOMY DRIVEN,
THEY ARE NOT PAYING AS MUCH INTO

THEY ARE NOT PAYING AS MUCH INTO
THAT GAS TAX.

THAT GAS TAX.
THAT'S NOT NECESSARILY A BAD

THAT'S NOT NECESSARILY A BAD
THING, BUT THE FUNDING IS

THING, BUT THE FUNDING IS
RELIANT ON THAT GAS TAX.

RELIANT ON THAT GAS TAX.
IF THAT'S NOT THERE, THEN WE

IF THAT'S NOT THERE, THEN WE
DON'T HAVE THE MONEY.

DON'T HAVE THE MONEY.
THAT'S A PROBLEM.

THAT'S A PROBLEM.
>> IT'S A PROBLEM BECAUSE THE

>> IT'S A PROBLEM BECAUSE THE
REVENUES ARE DECREASING WITH

REVENUES ARE DECREASING WITH
MORE EFFICIENT CARS.

MORE EFFICIENT CARS.
WE WILL HAVE TO WORK THOON WITH

WE WILL HAVE TO WORK THOON WITH
THE PRIVATE SECTOR.

THE PRIVATE SECTOR.
THE STATE CAN'T SAY THIS IS WHAT

THE STATE CAN'T SAY THIS IS WHAT
WE ARE GOING TO DO.

WE ARE GOING TO DO.
WE NEED TO BE WORKING WITH

WE NEED TO BE WORKING WITH
PEOPLE.

PEOPLE.
THERE WAS A BILL INTRODUCED TO

THERE WAS A BILL INTRODUCED TO
HELP PEOPLE START WORKING ON

HELP PEOPLE START WORKING ON
THAT.

THAT.
IT WAS UNWIELDING, THE SIZE OF

IT WAS UNWIELDING, THE SIZE OF
IT.

IT.
BUT WE NEED TO WORK TOGETHER AND

BUT WE NEED TO WORK TOGETHER AND
COME UP WITH SOME SOLUTIONS.

COME UP WITH SOME SOLUTIONS.
I THINK WE CAN DO THAT.

I THINK WE CAN DO THAT.
HOW, I DON'T KNOW WHAT IT WILL

HOW, I DON'T KNOW WHAT IT WILL
BE, BUT OUR ROADS ARE

BE, BUT OUR ROADS ARE
DETERIORATING AND WE NEED TO BE

DETERIORATING AND WE NEED TO BE
ON TOP OF THAT.

ON TOP OF THAT.
ESPECIALLY IN RURAL ARIZONA,

ESPECIALLY IN RURAL ARIZONA,
LIKE I HAVE TO GO 100 MILES JUST

LIKE I HAVE TO GO 100 MILES JUST
TO GET FROM PRESCOTT TO HERE.

TO GET FROM PRESCOTT TO HERE.
>> IS THAT THE KEY ISSUE?

>> IS THAT THE KEY ISSUE?
>> NOT THE KEY ISSUE, BUT ONE

>> NOT THE KEY ISSUE, BUT ONE
ISSUE.

ISSUE.
THERE IS INTERSTATE 15 THAT GOES

THERE IS INTERSTATE 15 THAT GOES
ACROSS THE NORTHWEST CORNER OF

ACROSS THE NORTHWEST CORNER OF
ARIZONA.

ARIZONA.
THERE IS 20 SOME BRIDGES.

THERE IS 20 SOME BRIDGES.
THERE IS NO COMMERCE.

THERE IS NO COMMERCE.
THOSE BRIDGES ARE DETERIORATING.

THOSE BRIDGES ARE DETERIORATING.
THEY WERE ORIGINALLY BUILT WITH

THEY WERE ORIGINALLY BUILT WITH
FEDERAL MONEY.

FEDERAL MONEY.
NOW IT IS UP TO THE STATE TO

NOW IT IS UP TO THE STATE TO
MAINTAIN THOSE BRIDGES AND PUT

MAINTAIN THOSE BRIDGES AND PUT
THEM IN A BETTER STATE OF

THEM IN A BETTER STATE OF
REPAIR.

REPAIR.
>> WHAT KIND OF PERCENTAGE, USER

>> WHAT KIND OF PERCENTAGE, USER
FEE OR TAX?

FEE OR TAX?
>> I WANT ME TO USE THE "T"

>> I WANT ME TO USE THE "T"
WORD?

WORD?
I DON'T KNOW THAT WE NEED TO

I DON'T KNOW THAT WE NEED TO
CHANGE THE SYSTEM THE WAY IT IS.

CHANGE THE SYSTEM THE WAY IT IS.
I THINK WE NEED TO LOOK FOR

I THINK WE NEED TO LOOK FOR
OTHER ALTERNATIVES.

OTHER ALTERNATIVES.
WHAT I WOULD LIKE TO SEE IS THAT

WHAT I WOULD LIKE TO SEE IS THAT
WE HAVE A TASK FORCE, A STUDY

WE HAVE A TASK FORCE, A STUDY
GROUP THAT WE ACTUALLY BRING

GROUP THAT WE ACTUALLY BRING
PEOPLE TOGETHER AND LOOK AT WHAT

PEOPLE TOGETHER AND LOOK AT WHAT
DO WE NEED TO MAKE IMPROVEMENTS.

DO WE NEED TO MAKE IMPROVEMENTS.
THE WAY WE ARE FUNDING IT IS NO

THE WAY WE ARE FUNDING IT IS NO
LONGER WORKING.

LONGER WORKING.
IT CAN'T KEEP UP WITH THE

IT CAN'T KEEP UP WITH THE
CHANGES WE HAVE MADE IN OUR

CHANGES WE HAVE MADE IN OUR
VEHICLE, SO WE HAVE TO FIND A

VEHICLE, SO WE HAVE TO FIND A
DIFFERENT WAY OF FUNDING OUR

DIFFERENT WAY OF FUNDING OUR
INFRASTRUCTURE IMPROVEMENT.

INFRASTRUCTURE IMPROVEMENT.
>> WE HAVE TO MAINTAIN WHAT WE

>> WE HAVE TO MAINTAIN WHAT WE
HAVE AND FIND A WAY OF DOING NEW

HAVE AND FIND A WAY OF DOING NEW
ROADS.

ROADS.
FOR EXAMPLE, THERE IS PUBLIC

FOR EXAMPLE, THERE IS PUBLIC
PRIVATE PARTNERSHIPS ON A NEW

PRIVATE PARTNERSHIPS ON A NEW
FREEWAY.

FREEWAY.
IT'S INTERSTATE 11 THAT WOULD

IT'S INTERSTATE 11 THAT WOULD
CONNECT PHOENIX TO LAS VEGAS.

CONNECT PHOENIX TO LAS VEGAS.
THEY ARE LOOKING AT NEW WAYS TO

THEY ARE LOOKING AT NEW WAYS TO
FUND THAT.

FUND THAT.
DOWN FROM TUCSON DOWN TO NOGALES

DOWN FROM TUCSON DOWN TO NOGALES
TO THE MARIPOSA PORT OF ENTRY.

TO THE MARIPOSA PORT OF ENTRY.
WE NEED TO LOOK AT WAYS TO

WE NEED TO LOOK AT WAYS TO
FUNNELED TH

FUNNELED TH
FUNNELFUND

FUNNELFUND
THAT ROAD SO THAT VEGETABLES CAN

THAT ROAD SO THAT VEGETABLES CAN
GET OUT OF NOGALES.

GET OUT OF NOGALES.
60% OF ARIZONA'S WINTER

60% OF ARIZONA'S WINTER
VEGETABLES COME IN THAT PORT AND

VEGETABLES COME IN THAT PORT AND
GO TO INTERSTATE 10 OR

GO TO INTERSTATE 10 OR
INTERSTATE 40 EAST-WEST.

INTERSTATE 40 EAST-WEST.
THERE ARE GOOD PEOPLE HERE WITH

THERE ARE GOOD PEOPLE HERE WITH
GOOD MINDS AND WE WILL FIND WAYS

GOOD MINDS AND WE WILL FIND WAYS
TO DO THAT.

TO DO THAT.
>> WHEN YOU MENTIONED

>> WHEN YOU MENTIONED
PUBLIC-PRIVATE PARTNERSHIP FOR

PUBLIC-PRIVATE PARTNERSHIP FOR
INTERSTATE 11 WHICH WOULD

INTERSTATE 11 WHICH WOULD
CONNECT PHOENIX AND LAS VEGAS,

CONNECT PHOENIX AND LAS VEGAS,
ARE YOU TALKING ABOUT A TOLL

ARE YOU TALKING ABOUT A TOLL
ROAD OF SOURTS SORTS.

ROAD OF SOURTS SORTS.
>> IT COULD BE.

>> IT COULD BE.
PEOPLE GET ALARMED WHEN YOU SAY

PEOPLE GET ALARMED WHEN YOU SAY
TOLL ROAD, BUT THIS WOULD BE A

TOLL ROAD, BUT THIS WOULD BE A
WHOLE NEW ROAD AND A WAY TO

WHOLE NEW ROAD AND A WAY TO
FUNNELED IT FUND IT.

FUNNELED IT FUND IT.
OVER A PERIOD OF TIME IT BECOMES

OVER A PERIOD OF TIME IT BECOMES
PUBLIC AGAIN.

PUBLIC AGAIN.
THE ECONOMY IS BAD.

THE ECONOMY IS BAD.
IT'S A WAY FOR US TO FUNCTION.

IT'S A WAY FOR US TO FUNCTION.
>> IT'S THE EQUIVALENT OF A USE

>> IT'S THE EQUIVALENT OF A USE
TAX BECAUSE THE USERS ARE USING

TAX BECAUSE THE USERS ARE USING
IT.

IT.
>> I DON'T WANT TO CALL IT A

>> I DON'T WANT TO CALL IT A
TAX, BUT IT'S A FEETO FOR THE

TAX, BUT IT'S A FEETO FOR THE
RIGHT TO USE THE ROAD.

RIGHT TO USE THE ROAD.
>> YOU TALK ABOUT A FORMATION OF

>> YOU TALK ABOUT A FORMATION OF
A ROAD.

A ROAD.
>> THERE IS NO LEGISLATION

>> THERE IS NO LEGISLATION
INTRODUCE THIS HAD YEAR THAT

INTRODUCE THIS HAD YEAR THAT
ADDRESSES THE FUNDING FOR

ADDRESSES THE FUNDING FOR
INFRASTRUCTURE IMPROVEMENTS.

INFRASTRUCTURE IMPROVEMENTS.
>>> CONSISTENTLY BUSINESSES SAY

>>> CONSISTENTLY BUSINESSES SAY
ONE OF THE TOP NEEDS IS A GOOD

ONE OF THE TOP NEEDS IS A GOOD
TRANSPORTATION SYSTEM.

TRANSPORTATION SYSTEM.
THE CEO TELLS WHY.

THE CEO TELLS WHY.
HOW IMPORTANT IS THE

HOW IMPORTANT IS THE
TRANSPORTATION SYSTEM FOR THE

TRANSPORTATION SYSTEM FOR THE
BUSINESS COMMUNITY?

BUSINESS COMMUNITY?
>> IT'S CRITICAL.

>> IT'S CRITICAL.
THERE ARE A LOT OF FACETS TO

THERE ARE A LOT OF FACETS TO
THAT ANSWER.

THAT ANSWER.
CERTAINLY WHEN YOU TALK ABOUT

CERTAINLY WHEN YOU TALK ABOUT
WORKFORCE, THAT'S ONE AREA WHERE

WORKFORCE, THAT'S ONE AREA WHERE
A GOOD TRANSPORTATION SYSTEM IS,

A GOOD TRANSPORTATION SYSTEM IS,
FRONT AND CENTER.

FRONT AND CENTER.
YOU NEED TO GET NOT ONLY CUSS

YOU NEED TO GET NOT ONLY CUSS
MEFT TO YOUR DOOR, BUT YOU NEED

MEFT TO YOUR DOOR, BUT YOU NEED
TO GET YOUR WORKFORCE TO THE

TO GET YOUR WORKFORCE TO THE
DOOR.

DOOR.
I CAN THINK OF A FEW COMPANIES

I CAN THINK OF A FEW COMPANIES
IN THE VALLEY WHEN THEY THINK

IN THE VALLEY WHEN THEY THINK
ABOUT WHERE THEY WANT TO BE,

ABOUT WHERE THEY WANT TO BE,
THEY PINPOINT THEIR COMPANY AND

THEY PINPOINT THEIR COMPANY AND
DRAW A RADIUS AROUND THAT

DRAW A RADIUS AROUND THAT
BECAUSE THEY KNOW THAT'S WHERE

BECAUSE THEY KNOW THAT'S WHERE
TEAM CAN COME IN.

TEAM CAN COME IN.
BEYOND THAT, THEY AREN'T GOING

BEYOND THAT, THEY AREN'T GOING
GET PEOPLE IN.

GET PEOPLE IN.
SO TO GET PEOPLE IN AS A

SO TO GET PEOPLE IN AS A
CUSTOMER AND TO THE BUSINESS

CUSTOMER AND TO THE BUSINESS
COMMUNITY, THAT'S IMPORTANT.

COMMUNITY, THAT'S IMPORTANT.
THERE IS AN ECONOMIC PROPONENT

THERE IS AN ECONOMIC PROPONENT
TO THAT.

TO THAT.
OUR LIGHT RAIL SYSTEM, WE WERE

OUR LIGHT RAIL SYSTEM, WE WERE
LATE TO THE GAME.

LATE TO THE GAME.
THERE IS A TRANSPORTATION PLAY

THERE IS A TRANSPORTATION PLAY
THERE.

THERE.
WHERE THAT CORRIDOR HAS GONE,

WHERE THAT CORRIDOR HAS GONE,
WHERE YOU HAVE SEEN THOSE TRACKS

WHERE YOU HAVE SEEN THOSE TRACKS
LAID HAS HAD A HUGE IMPACT IN

LAID HAS HAD A HUGE IMPACT IN
TERMS OF DEVELOPMENT WHICH IS

TERMS OF DEVELOPMENT WHICH IS
SOMETHING I DON'T THINK PEOPLE

SOMETHING I DON'T THINK PEOPLE
HAVE FOCUSED ON.

HAVE FOCUSED ON.
SAME THING WITH PEOPLE IN THE

SAME THING WITH PEOPLE IN THE
OUTLYING AREAS.

OUTLYING AREAS.
AS FREEWAYS CAME IN, BUSINESSES

AS FREEWAYS CAME IN, BUSINESSES
CAME IN AND YOU SAW A LOT OF

CAME IN AND YOU SAW A LOT OF
ECONOMIC DEVELOPMENT AND A LOT

ECONOMIC DEVELOPMENT AND A LOT
OF GOOD ACTIVITY.

OF GOOD ACTIVITY.
>> SO IS THE INFRASTRUCTURE FOR

>> SO IS THE INFRASTRUCTURE FOR
TRANSPORTATION IN THE PHOENIX

TRANSPORTATION IN THE PHOENIX
METRO AREA KEEPING PACE WITH

METRO AREA KEEPING PACE WITH
BUSINESS NEEDS?

BUSINESS NEEDS?
>> I THINK IT IS.

>> I THINK IT IS.
I THINK IN 2004 THERE WAS A

I THINK IN 2004 THERE WAS A
SALES TAX INCREASE.

SALES TAX INCREASE.
THAT WAS THE CHAMBER AT THE

THAT WAS THE CHAMBER AT THE
TIME.

TIME.
THE CHAMBER SUPPORTED THAT.

THE CHAMBER SUPPORTED THAT.
WE WERE BIG SUPPORTERS OF THAT.

WE WERE BIG SUPPORTERS OF THAT.
WE NEED TO MAKE THAT INVESTMENT.

WE NEED TO MAKE THAT INVESTMENT.
FROM THAT PERSPECTIVE WE ARE

FROM THAT PERSPECTIVE WE ARE
DOING WELL.

DOING WELL.
IN AN OVERALL PERSPECTIVE, WE

IN AN OVERALL PERSPECTIVE, WE
ARE RUNNING INTO PROBLEMS.

ARE RUNNING INTO PROBLEMS.
IF YOU LOOK AT THE DIRECTOR, ONE

IF YOU LOOK AT THE DIRECTOR, ONE
OF THE PROBLEMS IS WE HAD A GAS

OF THE PROBLEMS IS WE HAD A GAS
TAX SET BACK IN THE '80S, 17

TAX SET BACK IN THE '80S, 17
CENTS PER GALLON.

CENTS PER GALLON.
THAT WAS DIFFERENT THEN THAN

THAT WAS DIFFERENT THEN THAN
TODAY.

TODAY.
WITH INFLATION THAT EQUALS ABOUT

WITH INFLATION THAT EQUALS ABOUT
8 CENTS PER GALLON TODAY.

8 CENTS PER GALLON TODAY.
SO YOU HAVE INFLATION AND MORE

SO YOU HAVE INFLATION AND MORE
FUEL EFFICIENT VEHICLES.

FUEL EFFICIENT VEHICLES.
IN TERMS OF TRANSPORTATION

IN TERMS OF TRANSPORTATION
DOLLARS, WHAT WE ARE ABLE TO DO

DOLLARS, WHAT WE ARE ABLE TO DO
IS MUCH LESS THAN WHAT WE NEED.

IS MUCH LESS THAN WHAT WE NEED.
I WOULD SAY WE ARE MAINTAINING,

I WOULD SAY WE ARE MAINTAINING,
SAFE, BUT IN TERMS OF THE

SAFE, BUT IN TERMS OF THE
FUTURE, WE ARE GOING TO REALLY

FUTURE, WE ARE GOING TO REALLY
LOOK AT THIS AND SAY HOW DO WE

LOOK AT THIS AND SAY HOW DO WE
EXPAND IT AND LOOK AT FUTURE

EXPAND IT AND LOOK AT FUTURE
GROWTH AND PLAN FOR TODAY SO WE

GROWTH AND PLAN FOR TODAY SO WE
CAN HAVE A SYSTEM THAT WORKS FOR

CAN HAVE A SYSTEM THAT WORKS FOR
TOMORROW.

TOMORROW.
>> AS YOU SAY, BASED ON ECONOMIC

>> AS YOU SAY, BASED ON ECONOMIC
DEVELOPMENT AND GROWTH AND

DEVELOPMENT AND GROWTH AND
THAT'S THE BIG PUSH IN ARIZONA

THAT'S THE BIG PUSH IN ARIZONA
AND EVERYWHERE COMING OUT OF THE

AND EVERYWHERE COMING OUT OF THE
RECEPTION, WHAT ARE WE GOING TO

RECEPTION, WHAT ARE WE GOING TO
BE ABLE TO DO TO SUPPORT A

BE ABLE TO DO TO SUPPORT A
TRANSPORTATION MODELING SYSTEM?

TRANSPORTATION MODELING SYSTEM?
>> WE PARTIALLY NEED TO LOOK AT

>> WE PARTIALLY NEED TO LOOK AT
WHAT WE NEED TO DO NOT ONLY IN

WHAT WE NEED TO DO NOT ONLY IN
CHANGING IT, BUT WHAT THE THEY

CHANGING IT, BUT WHAT THE THEY
HAVE BEEN LOOKING AT, DUE TO THE

HAVE BEEN LOOKING AT, DUE TO THE
BUDGET CRISIS, A LOT OF THOSE

BUDGET CRISIS, A LOT OF THOSE
DOLLARS HAVE BEEN SHIFTED OR

DOLLARS HAVE BEEN SHIFTED OR
REDIRECTED AND NOT GONE TO

REDIRECTED AND NOT GONE TO
TRANSPORTATION, WHICH HAS BEEN A

TRANSPORTATION, WHICH HAS BEEN A
BIG PROBLEM.

BIG PROBLEM.
WE HAVE BEEN FOCUSED ON THAT.

WE HAVE BEEN FOCUSED ON THAT.
IN TERMS OF WHAT IS HAPPENING IN

IN TERMS OF WHAT IS HAPPENING IN
MARICOPA COUNTY, WE NEED TO LOOK

MARICOPA COUNTY, WE NEED TO LOOK
AT THAT FROM A TAX AND STATE

AT THAT FROM A TAX AND STATE
PERSPECTIVE.

PERSPECTIVE.
WE HAVE TO LOOK AT IT

WE HAVE TO LOOK AT IT
STRATEGICALLY.

STRATEGICALLY.
I THINK PEOPLE HAVE THEIR EYE ON

I THINK PEOPLE HAVE THEIR EYE ON
THAT BALL.

THAT BALL.
I CAN TEM YOU THAT THE CHAMBER

I CAN TEM YOU THAT THE CHAMBER
IS GOING TO BE VERY ACTIVELY

IS GOING TO BE VERY ACTIVELY
ENGAGED IN THAT CONVERSATION.

ENGAGED IN THAT CONVERSATION.
>> YOU OBVIOUSLY HAVE A

>> YOU OBVIOUSLY HAVE A
TRANSPORTATION COMMITTEE ON

TRANSPORTATION COMMITTEE ON
THESE ISSUES WITH CITY, COUNTY

THESE ISSUES WITH CITY, COUNTY
AND STATE OFFICIALS?

AND STATE OFFICIALS?
>> ABSOLUTELY.

>> ABSOLUTELY.
THERE IS ENGAGEMENT WITH THE

THERE IS ENGAGEMENT WITH THE
CITY IN A BIG WAY.

CITY IN A BIG WAY.
WHEN THE LOCAL QUESTION WAS

WHEN THE LOCAL QUESTION WAS
ASKED OF THE VOTERS, THE CHAMBER

ASKED OF THE VOTERS, THE CHAMBER
WAS VERY ACTIVE IN THAT

WAS VERY ACTIVE IN THAT
DISCUSSION.

DISCUSSION.
AT THE STATE LEVEL, ANOTHER AREA

AT THE STATE LEVEL, ANOTHER AREA
WE ARE ACTIVELY ENGAGED, THE

WE ARE ACTIVELY ENGAGED, THE
GOVERNOR'S OFFICE AS WELL AS THE

GOVERNOR'S OFFICE AS WELL AS THE
LEGISLATURE.

LEGISLATURE.
THE BIGGEST FOCUS HAS BEEN HOW

THE BIGGEST FOCUS HAS BEEN HOW
DO WE PROTECT THOSE DOLLARS,

DO WE PROTECT THOSE DOLLARS,
WHICH ARE TRANSPORTATION DOLLARS

WHICH ARE TRANSPORTATION DOLLARS
GOING A DIFFERENT PLACE TO FUND

GOING A DIFFERENT PLACE TO FUND
SOMETHING ELSE.

SOMETHING ELSE.
WE WILL BE WORKING WITH THE

WE WILL BE WORKING WITH THE
COUNCIL AS WELL AS MAG.

COUNCIL AS WELL AS MAG.
AND WE WILL BE LOOKING AT HOW WE

AND WE WILL BE LOOKING AT HOW WE
CAN DO IT STRATEGICALLY NOT JUST

CAN DO IT STRATEGICALLY NOT JUST
FOR THE NEEDS OF TODAY, BUT

FOR THE NEEDS OF TODAY, BUT
TOMORROW.

TOMORROW.
IF WE ARE GOING TO CONTINUE TO

IF WE ARE GOING TO CONTINUE TO
GROW, WE WILL NEED A PLAN FOR

GROW, WE WILL NEED A PLAN FOR
IT.

IT.
>> IS THE BUSINESS COMMUNITY

>> IS THE BUSINESS COMMUNITY
WILLING TO PAY FOR THE

WILLING TO PAY FOR THE
TRANSPORTATION WE NEED?

TRANSPORTATION WE NEED?
>> WE HAVE BEEN.

>> WE HAVE BEEN.
THERE ARE NEEDS THAT AREN'T

THERE ARE NEEDS THAT AREN'T
NECESSARILY MEETING THE NEEDS OF

NECESSARILY MEETING THE NEEDS OF
THE BUSINESS COMMUNITY OR

THE BUSINESS COMMUNITY OR
WEREN'T WRITTEN IN THE BEST WAY

WEREN'T WRITTEN IN THE BEST WAY
OF THE BUSINESS COMMUNITY OR

OF THE BUSINESS COMMUNITY OR
LOCAL COMMUNITY.

LOCAL COMMUNITY.
BUT BROADER, YES.

BUT BROADER, YES.
THE BUSINESS COMMUNITY

THE BUSINESS COMMUNITY
UNDERSTANDS YOU HAVE TO INVEST

UNDERSTANDS YOU HAVE TO INVEST
IN ORDER TO HAVE SOME SORT OF

IN ORDER TO HAVE SOME SORT OF
RETURN.

RETURN.
>> WHAT DO YOU SEE HAPPENING IN

>> WHAT DO YOU SEE HAPPENING IN
THE NEAR TERM, SHORT-TERM?

THE NEAR TERM, SHORT-TERM?
WHAT INFLUENCE WILL THE CHAMBER

WHAT INFLUENCE WILL THE CHAMBER
TRY TO HAVE ON THE STATE'S

TRY TO HAVE ON THE STATE'S
FIVE-YEAR TRANSPORTATION PLAN

FIVE-YEAR TRANSPORTATION PLAN
STILL BEING DECIDED ON?

STILL BEING DECIDED ON?
>> WE WILL HAVE A FULL-TIME TEAM

>> WE WILL HAVE A FULL-TIME TEAM
DEDICATED TO THE STATE

DEDICATED TO THE STATE
LEGISLATURE.

LEGISLATURE.
THE DIRECTOR IS IN HERE ON A

THE DIRECTOR IS IN HERE ON A
REGULAR BASIS TALKING TO OUR

REGULAR BASIS TALKING TO OUR
TRANSPORTATION COMMITTEE.

TRANSPORTATION COMMITTEE.
THEY ARE INTERESTED IN WHAT

THEY ARE INTERESTED IN WHAT
HAPPENS AND INTERESTED IN HOW WE

HAPPENS AND INTERESTED IN HOW WE
CAN BE A PART OF THAT

CAN BE A PART OF THAT
DISCUSSION.

DISCUSSION.
WE ARE A BIG CONSUMER OF WHAT

WE ARE A BIG CONSUMER OF WHAT
COMES OUT OF THAT PLAN.

COMES OUT OF THAT PLAN.
>> ONE INDUSTRY IN PARTICULAR IS

>> ONE INDUSTRY IN PARTICULAR IS
PAYING ATTENTION TO THE SHIFTING

PAYING ATTENTION TO THE SHIFTING
PRIORITIES.

PRIORITIES.
THAT'S THE PAVING ASSOCIATION.

THAT'S THE PAVING ASSOCIATION.
RAMON SPOKE WITH ME ABOUT IT.

RAMON SPOKE WITH ME ABOUT IT.
>> THANKS FOR BEING WITH ME.

>> THANKS FOR BEING WITH ME.
>> THANKS FOR HAVING ME.

>> THANKS FOR HAVING ME.
>> WHAT'S THE CURRENT STATE AS

>> WHAT'S THE CURRENT STATE AS
FAR AS CONTRACTING IS CONCERNED?

FAR AS CONTRACTING IS CONCERNED?
ARE YOU IN RECOVERY?

ARE YOU IN RECOVERY?
>> I THINK WE ARE IN A MODEST

>> I THINK WE ARE IN A MODEST
RECOVERY.

RECOVERY.
OUR MEMBERS RELY ON PUBLIC AND

OUR MEMBERS RELY ON PUBLIC AND
PRIVATE SECTORS WORK.

PRIVATE SECTORS WORK.
WE ARE RECOVERING ON THE PRIVATE

WE ARE RECOVERING ON THE PRIVATE
SECTOR SIDE, SWINGING TO THAT

SECTOR SIDE, SWINGING TO THAT
SIDE, BUT THE PUBLIC SECTOR IS

SIDE, BUT THE PUBLIC SECTOR IS
THE MAJORITY OF WHERE WE ARE

THE MAJORITY OF WHERE WE ARE
TODAY.

TODAY.
>> HAVE YOU SEEN A NUMBER OF

>> HAVE YOU SEEN A NUMBER OF
CHANGES THAT EXIST IN THE

CHANGES THAT EXIST IN THE
INDUSTRY AS A RESULT OF THE

INDUSTRY AS A RESULT OF THE
RECEPTION AND AFTERMATH?

RECEPTION AND AFTERMATH?
>> I WOULD SAY YES AND NO.

>> I WOULD SAY YES AND NO.
THERE ARE A LOT OF FOLKS THAT

THERE ARE A LOT OF FOLKS THAT
ARE STILL HERE, BUT MAY HAVE

ARE STILL HERE, BUT MAY HAVE
GROUPED WITH ANOTHER COMPANY.

GROUPED WITH ANOTHER COMPANY.
THERE ARE STILL BUSINESSES

THERE ARE STILL BUSINESSES
COMING OUT OF RESTHAEPCESSION TE

COMING OUT OF RESTHAEPCESSION TE
NOT SURE WHERE THEY WILL BE.

NOT SURE WHERE THEY WILL BE.
THEY ARE RELYING ON THAT.

THEY ARE RELYING ON THAT.
WE ARE STILL SEEING A LITTLE

WE ARE STILL SEEING A LITTLE
UNCERTAIN STAGE FOR THEM.

UNCERTAIN STAGE FOR THEM.
>> WHAT SHARE OF YOUR MEMBERSHIP

>> WHAT SHARE OF YOUR MEMBERSHIP
IS DEVOTED TO PUBLIC INF

IS DEVOTED TO PUBLIC INF
INFRASTRUCTU

INFRASTRUCTU
INFRASTRUCTURE, WHICH IS ROADS

INFRASTRUCTURE, WHICH IS ROADS
AND BRIDGES?

AND BRIDGES?
>> I WOULD SAY 95% OF OUR GUYS

>> I WOULD SAY 95% OF OUR GUYS
R. WE HAVE FOLKS WHO DO BOTH.

R. WE HAVE FOLKS WHO DO BOTH.
THEY RELY ON THE PUBLIC SECTOR

THEY RELY ON THE PUBLIC SECTOR
WORK, BUT ALSO ON THE PRIVATE

WORK, BUT ALSO ON THE PRIVATE
SECTOR WORK.

SECTOR WORK.
WE ARE IN THE STAGE WHERE WE ARE

WE ARE IN THE STAGE WHERE WE ARE
DOING A LOT OF PUBLIC WORK.

DOING A LOT OF PUBLIC WORK.
IT'S STILL ONE OF THOSE AREAS WE

IT'S STILL ONE OF THOSE AREAS WE
FIND THAT MEMBERS ARE TRYING TO

FIND THAT MEMBERS ARE TRYING TO
FIND THEMSELVES TO DO MORE

FIND THEMSELVES TO DO MORE
PRIVATE SECTOR WORK, BUT THE

PRIVATE SECTOR WORK, BUT THE
ECONOMY NEEDS TO RECOVER.

ECONOMY NEEDS TO RECOVER.
>> WHAT WE ARE SEEING AT THE

>> WHAT WE ARE SEEING AT THE
STATE LEVEL, AS WE'VE HEARD

STATE LEVEL, AS WE'VE HEARD
DESCRIBED BY THE TRANSPORTATION

DESCRIBED BY THE TRANSPORTATION
DIRECTOR IS A SWING FROM

DIRECTOR IS A SWING FROM
CONSTRUCTION AND EXPLANATION R

CONSTRUCTION AND EXPLANATION R
PAN

PAN
-- EXPANSION TO MAINTENANCE.

-- EXPANSION TO MAINTENANCE.
HOW WILL THAT AFFECT YOUR

HOW WILL THAT AFFECT YOUR
MEMBERS?

MEMBERS?
>> A LITTLE BIT.

>> A LITTLE BIT.
SOME OF THAT WORK WILL STILL BE

SOME OF THAT WORK WILL STILL BE
BID TO OUR MEMBERS, SO THEY WILL

BID TO OUR MEMBERS, SO THEY WILL
STILL HAVE A CHANCE TO DO WORK.

STILL HAVE A CHANCE TO DO WORK.
HOWEVER, BECAUSE WE ARE NOT

HOWEVER, BECAUSE WE ARE NOT
DOING THE HEAVY HIGHWAY

DOING THE HEAVY HIGHWAY
CONSTRUCTION, THE PROJECTS

CONSTRUCTION, THE PROJECTS
BECOME LESS VALUABLE IN TERMS OF

BECOME LESS VALUABLE IN TERMS OF
THE AMOUNT THEY COULD MAKE A

THE AMOUNT THEY COULD MAKE A
PROFIT.

PROFIT.
WE, UNFORTUNATELY, HAVE BEEN

WE, UNFORTUNATELY, HAVE BEEN
SEEING THAT SWING BECAUSE OF THE

SEEING THAT SWING BECAUSE OF THE
WAY THE ECONOMY HAS GONE AND THE

WAY THE ECONOMY HAS GONE AND THE
FUNDING THAT HAS DWINDLED OVER

FUNDING THAT HAS DWINDLED OVER
THE PAST COUPLE YEARS.

THE PAST COUPLE YEARS.
WE ARE SEEING MORE TO RECOVERY

WE ARE SEEING MORE TO RECOVERY
WITH ROADS, FIXING WHAT IS NOT

WITH ROADS, FIXING WHAT IS NOT
REPAIRED RATHER THAN ROADS WE DO

REPAIRED RATHER THAN ROADS WE DO
GET INVOLVED.

GET INVOLVED.
THAT'S A SEPARATE CONVERSATION.

THAT'S A SEPARATE CONVERSATION.
WE ARE STILL DOING WORK, BUT

WE ARE STILL DOING WORK, BUT
JUST NOT THE WORK WE DO ON A

JUST NOT THE WORK WE DO ON A
DAILY BASIS.

DAILY BASIS.
>> WHAT IMPACT DOES THAT HAVE ON

>> WHAT IMPACT DOES THAT HAVE ON
THE SKILLED JOBS AND JOBS?

THE SKILLED JOBS AND JOBS?
DO MAINTENANCE JOBS REQUIRE LSST

DO MAINTENANCE JOBS REQUIRE LSST
SKILL AND IS THERE A SHIFT?

SKILL AND IS THERE A SHIFT?
>> WE ARE LOSING SKILLED LABOR.

>> WE ARE LOSING SKILLED LABOR.
WE ARE GOING ELSEWHERE TO FIND

WE ARE GOING ELSEWHERE TO FIND
SKILLED LABOR.

SKILLED LABOR.
NOT ONLY THAT, WE ARE GOING TO

NOT ONLY THAT, WE ARE GOING TO
OTHER STATES TO DO WORK BECAUSE

OTHER STATES TO DO WORK BECAUSE
THAT'S WHERE THE WORK IS.

THAT'S WHERE THE WORK IS.
BECAUSE WE HAVE LESS SKILLED

BECAUSE WE HAVE LESS SKILLED
LABOR, IT'S PUTTING MORE

LABOR, IT'S PUTTING MORE
PRESSURE ON THE CONTRACT

PRESSURE ON THE CONTRACT
INDUSTRY.

INDUSTRY.
SOMETIMES IT RELIES NOT TO BID

SOMETIMES IT RELIES NOT TO BID
ON CERTAIN PROJECTS OR DO

ON CERTAIN PROJECTS OR DO
CERTAIN WORK BECAUSE THEY DON'T

CERTAIN WORK BECAUSE THEY DON'T
HAVE THE LAYUP OR EMPLOYEES TO

HAVE THE LAYUP OR EMPLOYEES TO
DO IT.

DO IT.
>> DO YOU KNOW NUMBERS OF JOBS

>> DO YOU KNOW NUMBERS OF JOBS
IN THE INDUSTRY THAT ARE

IN THE INDUSTRY THAT ARE
AFFECTED BY THIS SHIFT?

AFFECTED BY THIS SHIFT?
>> IT DEPENDS ON THE TYPE OF

>> IT DEPENDS ON THE TYPE OF
COMPANY.

COMPANY.
A LOT OF COMPANIES DO SPA CIVIC

A LOT OF COMPANIES DO SPA CIVIC
INF

INF
INFRASTRUCTURE WORK.

INFRASTRUCTURE WORK.
WHAT I'M HEARING FROM THE

WHAT I'M HEARING FROM THE
INDUSTRY IS THAT IN CERTAIN

INDUSTRY IS THAT IN CERTAIN
CASES THEY HAVE LOST 50% OF

CASES THEY HAVE LOST 50% OF
THEIR EMPLOYMENT SINCE LAST

THEIR EMPLOYMENT SINCE LAST
YEAR.

YEAR.
SOME OTHERS ARE STAYING STABLE.

SOME OTHERS ARE STAYING STABLE.
WHAT WE ARE ALSO SEEING IS THAT

WHAT WE ARE ALSO SEEING IS THAT
WE ARE NOT EMPLOYING THE

WE ARE NOT EMPLOYING THE
EMPLOYEES AS WELL AS IN THE

EMPLOYEES AS WELL AS IN THE
PAST.

PAST.
WE CAN'T OFFER THINGS TO KEEP

WE CAN'T OFFER THINGS TO KEEP
THEM STABLE AND PUT MONEY BACK

THEM STABLE AND PUT MONEY BACK
INTO THE ECONOMY.

INTO THE ECONOMY.
IT VARIES WITH THE TYPE OF

IT VARIES WITH THE TYPE OF
COMPANY YOU ARE WITH.

COMPANY YOU ARE WITH.
OVERALL I WOULD SAY IT'S PRETTY

OVERALL I WOULD SAY IT'S PRETTY
STABLE.

STABLE.
WE HAVEN'T SEEN MUCH TO THE

WE HAVEN'T SEEN MUCH TO THE
POSITIVE.

POSITIVE.
>> THE ISSUE IS FUNDING AT THE

>> THE ISSUE IS FUNDING AT THE
STATE AND LOCAL LEVEL.

STATE AND LOCAL LEVEL.
YOU TOLD ME BEFORE WE CAME

YOU TOLD ME BEFORE WE CAME
BEFORE THE CAMERA, THAT YOU WERE

BEFORE THE CAMERA, THAT YOU WERE
IN PHOENIX LAST WEEK TALKING

IN PHOENIX LAST WEEK TALKING
ABOUT THAT WHOLE ASPECT OF IT.

ABOUT THAT WHOLE ASPECT OF IT.
GIVE US A BRIEFING ON WHAT YOU

GIVE US A BRIEFING ON WHAT YOU
FOUND OUT THERE?

FOUND OUT THERE?
>> OVER THE LAST 12 YEARS THE

>> OVER THE LAST 12 YEARS THE
STATE LEGISLATURE HAS SWEPT $1.6

STATE LEGISLATURE HAS SWEPT $1.6
BILLION OF HIGHWAY REVENUE USER

BILLION OF HIGHWAY REVENUE USER
FUNNELED FUND.

FUNNELED FUND.
THAT'S COMPRISED OF GAS TAX.

THAT'S COMPRISED OF GAS TAX.
>> THAT'S TAKING IT AWAY --

>> THAT'S TAKING IT AWAY --
>> TAKING IT AWAY AND SWEEPING

>> TAKING IT AWAY AND SWEEPING
IT TO OTHER THINGS.

IT TO OTHER THINGS.
THE LOSS IS TO THE END USER OF

THE LOSS IS TO THE END USER OF
THE ROAD.

THE ROAD.
WHAT WE HAVE HEARD IS THAT THE

WHAT WE HAVE HEARD IS THAT THE
LEGISLATURE IS NOT WILLING TO

LEGISLATURE IS NOT WILLING TO
TAKE A STEP INTO THE DIRECTION

TAKE A STEP INTO THE DIRECTION
OF TRYING TO FUND

OF TRYING TO FUND
TRANSPORTATION.

TRANSPORTATION.
THEY WANT TO FIND NEW AVENUES

THEY WANT TO FIND NEW AVENUES
AND ARE PUTTING IT ON THE BURDEN

AND ARE PUTTING IT ON THE BURDEN
OF THE INDUSTRY.

OF THE INDUSTRY.
WE WILL PROBABLY FINDING

WE WILL PROBABLY FINDING
OURSELVES DOING MORE MAINTENANCE

OURSELVES DOING MORE MAINTENANCE
WORK THAN PROJECTS TO EXPAND OUR

WORK THAN PROJECTS TO EXPAND OUR
INFRASTRUCTURE.

INFRASTRUCTURE.
IT'S LEAVING US TO FIND WITH

IT'S LEAVING US TO FIND WITH
THOSE AVENUES, OTHER WORK, OTHER

THOSE AVENUES, OTHER WORK, OTHER
POCKETS.

POCKETS.
WH

WH
-- OTHER AVENUES.

-- OTHER AVENUES.
WHAT WE WILL BE DOING IS LOOKING

WHAT WE WILL BE DOING IS LOOKING
AT STUDIES THAT ARE NOT TIED TO

AT STUDIES THAT ARE NOT TIED TO
THE PURSE STRINGS THE

THE PURSE STRINGS THE
LEGISLATURE CONTROLS.

LEGISLATURE CONTROLS.
WE LOOK TO GAIN DOLLARS, PUT IT

WE LOOK TO GAIN DOLLARS, PUT IT
BACK INTO OUR INFRASTRUCTURE.

BACK INTO OUR INFRASTRUCTURE.
GET PROJECTS MOVING ON TIME.

GET PROJECTS MOVING ON TIME.
THERE IS A LOT OF STEPS, BUT I

THERE IS A LOT OF STEPS, BUT I
THINK WE WILL HAVE TO LOOK AT

THINK WE WILL HAVE TO LOOK AT
NEW AVENUES.

NEW AVENUES.
>> YOU MENTIONED THE WORD TAXES.

>> YOU MENTIONED THE WORD TAXES.
WE HAVE ABOUT HALF A MINUTE

WE HAVE ABOUT HALF A MINUTE
REMAINING.

REMAINING.
YOU MENTIONED THE WORD TAXES.

YOU MENTIONED THE WORD TAXES.
AS WE SAW, A COUPLE OF

AS WE SAW, A COUPLE OF
LEGISLATORS DON'T WANT TO USE

LEGISLATORS DON'T WANT TO USE
THE WORD OR REJECT THE USE OF

THE WORD OR REJECT THE USE OF
THE WORD.

THE WORD.
WHAT DOES IT MEAN?

WHAT DOES IT MEAN?
>> 50% OF OUR MONEY COMES FROM

>> 50% OF OUR MONEY COMES FROM
WADA WASHINGTON, D.C.

WADA WASHINGTON, D.C.
THE CURRENT STATE OF OUR

THE CURRENT STATE OF OUR
GOVERNMENT ARE NOT WILLING TO OR

GOVERNMENT ARE NOT WILLING TO OR
HAVE NOT BEEN WANTING TO FUND

HAVE NOT BEEN WANTING TO FUND
TRANSPORTATION AND

TRANSPORTATION AND
INFRASTRUCTURE.

INFRASTRUCTURE.
WE ARE GOING TO SEE IN THE

WE ARE GOING TO SEE IN THE
FUTURE -- WE ARE GOING TO HAVE

FUTURE -- WE ARE GOING TO HAVE
TO COME UP WITH NEW THINGS OUR

TO COME UP WITH NEW THINGS OUR
COUNCIL AND GOVERNMENT IS GOING

COUNCIL AND GOVERNMENT IS GOING
TO HAVE TO SWALLOW.

TO HAVE TO SWALLOW.
>> THE EXECUTIVE DIRECTOR OF THE

>> THE EXECUTIVE DIRECTOR OF THE
UTILITY ASSOCIATION.

UTILITY ASSOCIATION.
THANK YOU.

THANK YOU.
>> THANK YOU.

>> THANK YOU.
>> SEE A LINK TO THE FIVE-YEAR

>> SEE A LINK TO THE FIVE-YEAR
TRANSPORTATION PLAN.

TRANSPORTATION PLAN.
THAT'S OUR PROGRAM FOR FRIDAY,

THAT'S OUR PROGRAM FOR FRIDAY,
MARCH 22, 2013.

MARCH 22, 2013.
NEXT FRIDAY ANOTHER FINANCIALLY

NEXT FRIDAY ANOTHER FINANCIALLY
FRAUGHT TOPIC, THE PRECARIOUS

FRAUGHT TOPIC, THE PRECARIOUS
STATE OF PUBLIC PENSION FUNDS.

>> PRODUCTION OF "ARIZONA WEEK"
IS MADE POSSIBLE IN PART BY --