Pinal Highway Authority Halts Operations, Declares SR 347 Upgrades ‘Unviable’

The Pinal Regional Transportation Authority (PRTA) has officially suspended operations as of today, a significant move made during a special board meeting attended by mayors and city council members across Pinal County. This marks a notable shutdown for an agency that had been active for nine years, reflecting a consensus among directors that there is “no viable path forward for construction of highway projects.”

Maricopa City Councilman Vincent Manfredi, a long-standing board member since 2016, expressed his disappointment over the situation. “After considering all options, I concluded that using the PRTA framework to improve State Route 347 or to develop a broader transportation plan is no longer feasible,” he stated, while reaffirming his commitment to pursue solutions for necessary improvements.

Recent events exacerbated the situation, particularly a ruling from the Arizona Supreme Court that invalidated voter approval of the PRTA’s 416/417 funding plan, resulting in refunds of collected funds from 2017 to 2021. This ruling has placed additional financial strain on regional transport initiatives.

Meanwhile, Maricopa County has moved forward with its transportation initiative, Proposition 479, which was approved by voters on November 5. This initiative allocates funds specifically aimed at improving State Route 347 within the county.

Despite the suspension of PRTA operations, funding for the Riggs Road project remains intact. However, Councilman Manfredi pointed out the ongoing need for financing on the Pinal County section of SR 347, suggesting that a half-cent local sales tax could be a potential solution. “This option will need to be discussed at the council level,” he remarked.

The PRTA board, composed of 11 representatives from various municipalities, had previously convened bi-monthly but may now reduce meetings to once a year. Notably, no staff layoffs occurred as a part of this suspension, with Pinal County continuing to provide management assistance for the agency.

The PRTA was instrumental in developing a Regional Transportation Plan that gained voter approval in 2017, which included implementing a half-cent sales tax projected to generate $640 million over 20 years for transportation improvements.

In its last session, the board resolved to partner with local businesses and the Arizona Department of Revenue to expedite the recovery of transportation excise taxes collected between 2018 and 2022. However, the Supreme Court ruling rendered the original structure of this tax invalid, leading to an impending refund of approximately $90 million in tax receipts.

Pinal County businesses that accrued transaction privilege taxes over four years may apply for refunds, with an option to donate those funds to a Central Arizona Governments fund. This measure aims to ensure the funds fulfill their intended purpose for transportation capital improvements while keeping the resources within Pinal County.

According to sources, businesses that collected this tax could be eligible for refunds through a process that supports the original goals of the transportation investments.