History and Local Funding

In 1985, the Arizona State Legislature passed a law enabling the citizens of Maricopa County to vote on a sales tax increase to fund regional freeway improvements and provide for the creation of the Regional Public Transportation Authority (RPTA).

In October of that year, Maricopa County voters approved passage of a proposition that approved a one-half cent sales tax to fund freeway construction with a portion, or $5 million per year (inflated annually), as seed money for regional transit service expansion. The RPTA received this funding through 2005 and was charged with developing a regional transit plan, finding a dedicated funding source for transit, and developing and operating a regional transit system.

In 1988, the residents of the city of Scottsdale passed a transportation tax that allowed funding for transit and transportation projects.

In 1993, the RPTA Board of Directors adopted Valley Metro as the identity for the regional transit system. The Valley Metro name and graphic design were chosen to give all buses a more recognizable identity and to help unify public transit systems in the Valley. The Valley Metro logo and purple and green paint scheme have been incorporated into the region’s fleet of bus, vanpool and dial-a-ride vehicles. In addition, a number of cities have adopted this regional identity into their fleet of vehicles.

In 1996, the city of Tempe residents passed a half-cent sales tax dedicated for transit, allowing them to expand their existing bus service and explore future options, such as light rail.

In 1998, the city of Mesa residents passed a quality-of-life half-cent sales tax, which dedicated a small portion for transit, with the remainder going toward parks and recreation, and police and fire departments.

In 2000, the city of Phoenix residents passed a four-tenths of a percent sales tax for improvements to local bus service, Bus Rapid Transit (began in 2003), Light Rail (beginning 2008), Neighborhood Mini-Bus Service, and more.

In 2001, the city of Glendale residents passed a half-cent sales tax dedicated for transit and other transportation improvements. Its transit plan was modeled after the city of Phoenix’s plan.

In 2004, Maricopa County residents extended the half-cent county-wide sales tax originally authorized in 1985. The tax allocates over one-third of tax revenues, or $5.8 billion (before inflation) for transit, including light rail.

In 2005, Peoria voters approved a three-tenths cent sales tax increase dedicated to funding transportation projects and services in Peoria. For the next 20 years, this dedicated revenue source will fund more than $200 million in projects that a citizen committee has identified as critical to the city’s transportation infrastructure.

Funding from LTAF

Members of Valley Metro must spend Local Transportation Assistance Funds (LTAF) revenues from the Arizona state lottery on public transportation if they are a member. An agency with a population of 300,000 or more must spend all of its LTAF funds on transit services. Agencies of 60,000 to 300,000 must commit at least one-third to LTAF funds to transit and those with populations of less than 60,000 must commit three-quarters of the LTAF funds to transit services.

LTAF II revenues are from the national powerball lottery and RPTA acts as a pass-through for jurisdictions receiving this funding for public transportation. Member agencies must apply for this transportation funding.