Arizona Transit Association

NEWS RELEASE

FOR IMMEDIATE RELEASE

Contact: John Anderson, AzTA Executive Director, (480) 361-5101

Arizona Transit Association Opposed to Potential Reductions in

Statewide Public Transportation Funding

Phoenix (June 5, 2006) – Despite strong state revenues, an approximate $1.5 billion
budget surplus and increased gasoline prices at the pump, the Arizona Legislature is
split on maintaining the existing funding levels for statewide public transportation
programs.

While the Arizona State Senate supports full funding for the Local Transportation
Assistance Fund (LTAF II), the House budget, adopted on May 25, 2006, suspended
an existing statutory funding formula for the distribution of Powerball revenues by
diverting dedicated public transportation dollars to the state general fund.

“We appreciate the support of the Arizona Senate and the leadership it has
demonstrated in protecting statewide funding for public transportation,” said Rick
Simonetta, president of the Arizona Transit Association. “Regrettably, the House
does not appear to appreciate the important role that transit plays throughout our
state, particularly in rural Arizona where transportation alternatives are limited.”

Proposed legislative reductions in statewide public transportation funding are coming
at the same time that the House voted to provide $245 million in highway
construction of which approximately 60% is ear-marked for Phoenix-area freeways.

“This is a shortsighted view of transportation policy, as public transportation is an
important component of any statewide multi-modal transportation system,” said Alan
Wulkan a nationally recognized expert on public transit related issues and a past
president of the Arizona Transit Association.

LTAF II is specifically designed to enhance county and municipal public
transportation programs, particularly those systems operating in rural communities.
These rural systems rely heavily on the LTAF II program to provide vital services to
the elderly and disabled populations that have limited transportation options and
access to critical services. Typically, programs funded by LTAF II in rural Arizona
provide dial-a-ride and van pool services between rural communities and regional or
urban centers.

Frequently, LTAF II distributions are used for one-time capital expenditures that
otherwise would not be funded with the limited and restricted resources available
from other transportation funding sources.

“Local agencies have been very successful in providing dial-a-ride and other transit
related services to senior centers as well as meeting other similar needs that
otherwise would not have received adequate funding” observed Ken Driggs, former
director of the Regional Public Transportation Authority in Maricopa County.
“Especially in rural Arizona where public transportation is often the only means that
elderly and handicap communities can access vital regional medical services.”

The LTAF II program was established in 1998 and statutorily prescribes the state
general fund receives $31 million in revenue from the multi-state lottery game,
county and municipal governments receive the next $18 million in available funds for
public transportation projects.

Since the 1998 fiscal year, LTAF II revenues have fluctuated, typically based on the
ebb and flow of the success of the Powerball. On average, $9 million a year has
been distributed for public transportation projects on a statewide basis. However,
the fiscal year distributions have ranged from zero to $18 million, thereby making
budget projections unreliable.

Accordingly, any legislative attempt to arbitrarily suspend the existing statutory
formula of the LTAF II program will significantly jeopardize the public transportation
services provided to many of the state’s most vulnerable populations.

“Given the status of the state budget and the Legislature’s significant funding of
freeways, it is unimaginable that state government would effectively reduce funding
for statewide public transportation,” said Wulkan.

AzTA is a non-profit statewide organization with over 300 public and private sector
member organizations, dedicated to improving public transportation in all Arizona
communities. AzTA’s membership includes local governments, chambers of
commerce, major employers, transit program operators, transit suppliers and
contractors, small businesses, non-profit community agencies and transportation
consultants.

For more information about AzTA, please visit the AzTA website at www.azta.org.