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Implementation of the Simplified Arizona Highway Cost Allocation Study Model
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    Final Report
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    The Arizona Simplified Model for Highway Cost Allocation Studies (Arizona SMHCAS) was developed in 1999 as an alternative to the complicated model for highway cost allocation then available to the Arizona Department of Transportation. The Arizona SMHCAS was refined in 2000 and back-tested to determine its suitability as a replacement for the old Arizona highway cost allocation model. Based on this testing, and on continuing problems with use of the old Arizona model, the Arizona SMHCAS was determined to be a suitable replacement. A training program for implementation of the SMHCAS model by Arizona Department of Transportation staff was subsequently initiated. The principal means of conducting the ADOT staff training was a complete update of the Arizona Simplified Highway Cost Allocation Model for fiscal 2001 to 2005. Throughout the course of this training program and update, several improvements were made to the Arizona SMHCAS based on feedback from ADOT personnel. These improvements included the aggregation of line item expenditure data into broader categories, the addition of input categories for state highway spending funded through “non-traditional” means (e.g. the Maricopa Freeway System funded via a transportation excise tax), and the addition of revenue input categories for future means of funding, including separate inputs for future weight-based, travel-based and flat user fees. Furthermore, all growth rate calculations were converted to a three-year rolling average to minimize the impact of variance in single year observations, and new tables were added to simplify the reporting of local government expenditures. Finally, based on a consensus in the literature regarding allocation of capacity-driven expenditures, passenger car equivalency factors were added as an option for allocating cost responsibility in urbanized areas.

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