THE VALUE OF ARIZONA'S STATE HIGHWAY SYSTEM: A CORPORATE-STYLE FINANCIAL ANALYSIS

Government agencies and private sector corporations tend to approach financial reporting in different ways. Presenting government agency financial information using corporate-style reporting would accomplish two specific goals. First, it might provide a more economically sound picture of the financial status of governmental undertakings. The private sector approaches issues of subsidization, revenue generation, depreciation, inflation, etc., in a different way than governments generally do. Using private sector techniques will, therefore, present a different perspective on the financial status of the state highway system than is currently reported by the Arizona Department of Transportation. Secondly, because legislators, the media and the general public are more familiar with private sector financial reporting, presenting government data in a similar fashion may improve communication between government agencies and these groups. The basic findings of this research can be summarized as follows: Under corporate style accounting, Arizona's state highways are a "break-even" proposition; A "break-even" position does not allow for contingencies or traffic growth; State highway users have paid taxes sufficient to cover 97% of the amount spent on the system; The value of these highways is in excess of 30 cents per vehicle mile of travel; The amount paid to support the construction and maintenance of these highways is only 4 cents per vehicle mile of travel; Highway user fees could go considerably higher without significantly depressing usage; and Differential pricing through electronic tolling would provide the most economically and socially efficient method for implementing fully compensatory highway user fees. Phase II of this project will attempt a similar financial analysis of the Maricopa freeway system.

• Record URL:
  • https://ntlrepository.blob.core.windows.net/lib/15000/15700/15766/PB2000100720.pdf
• 
• Corporate Authors:

  Nadia Mansour

  819 Hamilton Street, #411
  Vancouver V6B 6M2,   Canada 

  Arizona Department of Transportation

  Transportation Planning Division, 206 South 17th Avenue
  Phoenix, AZ  United States  85007

  Arizona Department of Transportation

  206 South 17th Avenue
  Phoenix, AZ  United States  85007

  Federal Highway Administration

  1200 New Jersey Avenue, SE
  Washington, DC  United States  20590
• Authors:
  • Mansour, N
  • Semmens, J
• Publication Date: 1999-9

Language

• English

Media Info

• Features: Appendices; Figures; References; Tables;
• Pagination: 60 p.

Subject/Index Terms

• TRT Terms: Automated toll collection; Communications; Financial analysis; Highway user taxation; Road pricing; State highways; Valuation
• Uncontrolled Terms: Corporate style accounting
• Geographic Terms: Arizona
• Subject Areas: Finance; Highways; I10: Economics and Administration;

Filing Info

• Accession Number: 00780258
• Record Type: Publication
• Report/Paper Numbers: FHWA-AZ-99-475(1),, Final Report
• Contract Numbers: SPR-PL-1-(55)475
• Files: NTL, TRIS, ATRI, USDOT, STATEDOT
• Created Date: Dec 15 1999 12:00AM