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Phoenix, Arizona, Proposition 105, End Light Rail Expansion Initiative (August 2019)

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Local ballot measure elections in 2019
Proposition 105: Phoenix End Light Rail Expansion Initiative
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The basics
Election date:
August 27, 2019
Status:
Defeatedd Defeated
Topic:
Local transportation
Related articles
Local transportation on the ballot
August 27, 2019 ballot measures in Arizona
Maricopa County, Arizona ballot measures
See also
Phoenix, Arizona

Proposition 105, a citizen initiative regarding the Valley Metro Light Rail, was on the ballot for Phoenix voters in Maricopa County, Arizona, on August 27, 2019. It was defeated.

A yes vote was a vote in favor of amending the city charter to end construction of light rail extensions; to redirect funds from light rail projects to other transportation infrastructure improvements in Phoenix; and to prohibit funding other light rail development, with an exception for PHX Sky Train.
A no vote was a vote against amending the city charter, thereby leaving funds allocated to light rail expansion according to existing charter provisions and city code.

Election results

Phoenix Proposition 105

Result Votes Percentage
Yes 72,752 37.14%

Defeated No

123,135 62.86%
Results are officially certified.
Source


Overview

What would Proposition 105 have done?

Proposition 105 would have prohibited the city from spending money on development, construction, expansion, or improvement of light rail transit, with an exception for PHX Sky Train. It would have allocated any revenue from the city's 0.7% transportation sales tax that was previously allocated toward light rail development to other city infrastructure. The initiative would have earmarked any revenue allocated to light rail development along Central Avenue south of Washington Street specifically for infrastructure in South Phoenix. This would have included the South Central Extension project. Proposition 105's provisions reallocating revenue would have applied to any collected, unspent revenue as well as future revenue.

Proposition 105 would have also added within the city charter provisions authorizing the Phoenix Citizens Transportation Committee—which was established through city code going into the election. The initiative would have guaranteed a $25,000 annual budget for the committee and tasked the committee with soliciting feedback from the public and advising the city council on how to spend funds reallocated by Proposition 105.

What is Proposition 104 (2015)?

The city's 0.7% transportation sales tax was approved by voters through Proposition 104 in 2015. City officials estimated that Proposition 104 would directly generate $16.7 billion through 2051. The plan also estimated $14.8 billion in funding from other sources, including federal grants, county/regional funding, and passenger fares. Of the Proposition 104 revenue, the Transportation 2050 plan allocated 51% to bus service and improvement and 14% to street improvements. The remaining 35% was earmarked for light rail and is the portion that would have been reallocated by Proposition 105.

What is the South Central Extension project?

Valley Metro planned to begin construction on the South Central Extension project in 2019 and scheduled it to be completed in 2023. The project was designed to consist of five miles of new light rail routes and was designed to "connect with the current light rail system in downtown Phoenix and operate south to Baseline Road," according to Metro Valley. It is one of six light rail system expansion projects planned in the city's Transportation 2050 plan—funded partially through Proposition 104 (2015). The budget for the South Central Extension project was estimated at approximately $1 billion. The estimated sources of funding for the project included 32% from Proposition 104 sales tax revenue, 47% from federal grants for the project, and 21% from regional funds.

Text of measure

Ballot question

The question on the ballot was as follows:[1]

Shall Chapter XXVIII be added to the Charter of the City of Phoenix to terminate all construction, development, extension or expansion of, or improvement to Phoenix light rail authorized by Proposition 104 (2015); to prohibit using any funds from any source for the construction, development, extension or expansion of, or improvement to any light rail or any other fixed rail line transit system (except PHX Sky Train) constructed on or after August 27, 2018; to instead use Proposition 104 tax revenues for other transportation infrastructure improvements in the City of Phoenix; and as further described above?[2]

Descriptive title

The following descriptive title was provided for Proposition 105:[1]

Proposed amendment to the Charter of the City of Phoenix to: (1) terminate all construction, development, extension or expansion of, or improvement to Phoenix light rail authorized by Proposition 104 (2015); (2) prohibit using any funds from any source for the construction, development, extension or expansion of, or improvement to any light rail or other fixed rail line transit system (except PHX Sky Train) constructed on or after August 27, 2018 and to instead use Proposition 104 tax revenues for other transportation infrastructure improvements in the City; (3) redirect the City's share of existing funding for the South Central Light Rail extension exclusively to other transportation infrastructure improvement projects located in South Phoenix; and (4) appropriate up to $25,000 annually to the Citizens Transportation Committee to solicit public input and recommend City Council action on potential transportation infrastructure improvement projects.

[2]

Full text

The full text of the measure is available here.

Support

Yes on Proposition 105 campaign logo

Building a Better Phoenix, Yes on Prop. 105 led the campaign behind Proposition 105.[3]

Supporters

  • Sal DiCiccio, Phoenix City Council (District 6)[4]
  • Roy Millier, member of the Phoenix Citizens Transportation Commission[5]
  • WM. T. Smith, member of the Phoenix Citizens Transportation Commission[5]

If you know of other endorsements that should be listed here, please email editor@ballotpedia.org.

Arguments

The Building a Better Phoenix campaign website featured the following arguments:[3]

  • Phoenix taxpayers are wasting BILLIONS on light rail expansion at the expense of other critical infrastructure. This is money that can be used to fix our streets and sidewalks, expand bus and dial-a-ride service, improve lighting and address other infrastructure improvements.
  • Over 70% of Phoenix city streets are in substandard condition and will require billions to repair. Halting light rail expansion will free up the money needed to fix our roads.
  • Light rail is expensive! It costs over $140 MILLION DOLLARS PER MILE to build and consumes 40% of the Phoenix transportation budget.
  • Light rail ridership is in rapid decline, with 800,000 less light rail riders in 2018 and fewer riders in 2019. Only 1% of the population now use the light rail system.[2]
  • Council Member Sal DiCiccio said, "Bad News: 70% of Phoenix streets are in fair, poor, or very poor condition according to estimates by city staff. Good News: You have a chance to fix those roads. Establishment politicians have refused to take action for years, but a citizen-driven ballot initiative in August will put the power back in your hands. Voting yes on Proposition 105 is the key to fixing all of our roads today."[6]

Publicity pamphlet arguments

Click here (starting on page 19) to read arguments in support of Proposition 105 submitted for inclusion in the publicity pamphlet.

Opposition

Invest in PHX, Vote no on 105 and 106 led the campaign in opposition to Proposition 105.[7]

Opponents

The opposition campaign listed the following endorsements:[7]

Organizations

  • United Phoenix Fire Fighters
  • Friends of the Phoenix Public LIbrary
  • AARP Arizona
  • Arizona Citizens for the Arts
  • Phoenix Chamber of Commerce
  • Greater Phoenix Leadership
  • Arizona AFL-CIO
  • AZ Chapter Associated General Contractors
  • Arizona Hispanic Chamber of Commerce
  • Urban Phoenix Project
  • Arizona Alliance for Retired Americans
  • Sierra Club Grand Canyon Chapter
  • We Build AZ
  • UNITEHERE! Local 11
  • Phoenix Community Alliance
  • CASE Action
  • LiUNA Local 777
  • AFSCME 2960
  • Downtown Voices Coalition
  • Ability 360
  • Arizona Alliance for Livable Communities
  • Arizona Forward
  • Arizona Public Health Association
  • Arizona Public Interest Research Group
  • Audubon Arizona
  • LISC Phoenix
  • Phoenix Downtown Neighborhood Alliance
  • Phoenix Revitalization Corporation
  • Phoenix Warehouse District Council
  • Promise Arizona
  • Valley Partnership
  • Wildfire

Elected officials and former elected officials

Arguments

No on 105 and 106 campaign logo

The Invest in PHX, No on 105 and 106 campaign website featured the following arguments:[7]

The Phoenix light rail system connects workers to their jobs, students to their schools, and families to our communities.

Prop 105 stops all light rail construction and kills light rail plans already approved by voters three times. It permanently prohibits Phoenix from investing in any kind of rail project – including light rail, commuter rail, or other potential train connections. It also sends billions in federal dollars to cities in other states.[2]

  • Todd Sanders, the president and CEO of the Greater Phoenix Chamber, said, "The Greater Phoenix Chamber has been a long-time supporter of investing in multimodal regional transit plans that move our city forward by connecting people to their community and to work opportunities. The passage of Prop 105 would hinder our city’s progress and our region’s attractiveness as a thriving, modern place to work, live, and play.”[8]
  • The Valley Metro website contained the following statement: "In addition to the potential loss of billions in federal and regional rail dollars, the initiative could impact the region’s air quality plan and the federal funds associated with pollution reduction efforts. It could also impact the region’s ability to renew upcoming transportation funding and maintain the system we have today."[9]

Publicity pamphlet arguments

Click here (starting on page 31) to read arguments in opposition to Proposition 105 submitted for inclusion in the publicity pamphlet.

Campaign finance

See also: Campaign finance requirements for Arizona ballot measures

The campaign finance information below is current through the most recent available reports as of October 23, 2019, containing contributions and expenditures through October 23, 2019.[10]

Total campaign contributions:
Support: $488,351.77
Opposition: $1,174,571.20[11]

Support

One committee, Building a Better Phoenix, registered in support of Proposition 105. The committee reported $460,000 in cash contributions, $29,000 in in-kind contributions, and $394,000 in expenditures. as of October 22, 2019. The top five donors to the committee provided 79% of contributions.'[10]

Committees in support of Proposition 105
Supporting committeesCash contributionsIn-kind servicesCash expenditures
Building a Better Phoenix$459,175.84$29,175.93$393,864.93
Total$459,175.84$29,175.93$393,864.93
Totals in support
Total raised:$488,351.77
Total spent:$423,040.86

Top donors

Donor Cash In-kind Total
Mel Martin $170,000 $16,750 $186,750
Chris Hinkson $80,000 $0 $80,000
Rachel Palopoli $45,000 $0 $45,000
Scot Mussi $40,000 $0 $40,000
Michael Schmidt $15,000 $0 $15,000
William Malouf $15,000 $0 $15,000

A little more about the top donors:

Mel Martin founded and owned Martin’s Auto Museum in north Phoenix as of 2019. Chris Hinkson founded and, as of 2019, was the CEO of the Hinkson Company, a commercial real estate agency. Rachel Palopoli was a business owner in South Phoenix. Scot Mussi was the president of the Arizona Free Enterprise Club.[12][13][14]

Opposition

Invest in PHX, the committee registered to oppose Proposition 105, also registered to oppose Proposition 106 and ran the campaigns together. The committee reported $1,174,571.20 in contributions and $1,104,250.89 in expenditures as of October 23, 2019. The top five donors to the committee provided 42% of contributions.'[10]

Committees in opposition to Proposition 105 and Proposition 106
Opposing committeesCash contributionsIn-kind servicesCash expenditures
Invest in PHX$1,174,571.20$0.00$1,104,250.89
Total$1,174,571.20$0.00$1,104,250.89
Totals in opposition
Total raised:$1,174,571.20
Total spent:$1,104,250.89

Top donors

The top six donors in opposition to Proposition 105 and 106 are below:

Donor Cash In-kind Total
Devil's Advocate $125,000 $0 $125,000
We Build Arizona $95,000 $0 $95,000
Greater Phoenix Leadership, Inc. $75,300 $0 $75,300
ASU Enterprise Partners $50,000 $0 $50,000
Laborers Pacific Southwest Regional Organizing Coalition - Issues PAC $50,000 $0 $50,000
Kiewit Infrastructure West Co. $50,000 $0 $50,000

A little more about the top donors:

As of 2019, We Build Arizona was the Arizona chapter of Associated General Contractors. Devil's Advocate was a political advocacy organization supporting Arizona State University as of 2019.[14]

Methodology

To read Ballotpedia's methodology for covering ballot measure campaign finance information, click here.

Background

See also: City of Phoenix Comprehensive Transportation Plan Funding, Proposition 104 (August 2015)

Propositions about light rail funding

From 1985 through 2018, Phoenix city voters have approved two citywide propositions concerning sales tax increases to fund transportation, including allocations to light rail development and other public transportation. City voters also cast ballots on two countywide propositions that proposed sales tax increases or extensions for transportation and were approved.[15][16]

Proposition 104 (2015) and the Transportation 2050 plan

In August 2015, 55% of Phoenix voters approved Proposition 104. Proposition 104 authorized the city to impose a transportation sales tax at a rate of 0.7%—seven cents for every $10 purchase—for 35 years. The revenue from the tax was set to be used to fund a transportation improvement plan for the city—called Transportation 2050—that included expansion and improvement of light rail and bus routes and road maintenance and repair. Going into 2015, the city of Phoenix had a 0.4% transportation sales tax in place. The 0.4% tax was set to expire in 2020. Proposition 104 increased the tax to 0.7% and extended it until 2051.[15]

    • City officials estimated that Proposition 104 would directly generate $16.7 billion through 2051. The plan also estimated $14.8 billion in funding from other sources, including federal grants, county/regional funding, and passenger fares.[17]
    • Of the Proposition 104 revenue, the Transportation 2050 plan allocated 51% to bus service and improvement, 35% to light rail, and 14% to street improvements.[17]
    • Proposition 105 (2019) would divert city light rail project funding that was authorized by the approval of Proposition 104 in 2015 to other transportation purposes.

Other city and county propositions concerning transportation and light rail funding

  • In 2004, 58% of county voters approved an extension of a 0.5% sales tax to fund transportation, with about one-third of revenue allocated to public transportation, including light rail services.[15]
  • In 2000, Phoenix voters approved a proposition authorizing a 0.4% sales tax to fund transportation, including allocations for local bus service, Bus Rapid Transit, and light rail development and services[15]
  • In 1985, county voters approved a proposition enacting a 0.5% sales tax to fund freeway construction, with a portion (5%) dedicated to regional transportation development.[15]

Planned expansions

Proposition 105 would prohibit any more Phoenix city funding for light rail expansion. Included in the transportation plan approved through Proposition 104 in 2015 were six expansions to the light rail services:[18]

  • 5.0-mile South Central Extension
    • Construction set to begin in 2019/2020
  • 1.5-mile NW Extension Phase II
    • Construction set to begin in 2019/2020
  • 1.5-mile Capitol/I-10 West Extension (Phase I)
    • Construction set to begin in 2020/2021
  • 5.0-mile West Phoenix/Central Glendale transit corridor
    • Construction set to begin in 2022
  • 9.5-mile Capitol/I-10 West Extension (Phase II)
    • Construction set to begin in 2026
  • 12.0-mile Northeast Phoenix transit corridor
    • Construction set to begin in 2028/2029

South Central Extension

Valley Metro planned to begin construction on the South Central Extension project in 2019 and scheduled it to be completed in 2023. The project was designed to "connect with the current light rail system in downtown Phoenix and operate south to Baseline Road," according to Metro Valley. The budget for that expansion project was estimated at approximately $1 billion, or about $180 million per mile. The estimated sources of funding for the project included the following:[19][20]

  • Federal grants: 47%
  • Funds from the Phoenix Proposition 104 (2015) sales tax: 32%
  • Regional funds: 21%

The federal and regional funding was set to be available exclusively for light rail expansion. Certain federal grants were earmarked for the South Central Extension project specifically. City funds could be reallocated by the city council or through a ballot measure, such as Proposition 105 (2019).

Light rail ridership

Below is a breakdown of Valley Metro light rail ridership from 2013 through 2018:[21]

Path to the ballot

See also: Laws governing local ballot measures in Arizona

This measure was put on the ballot through a successful initiative petition campaign led by Building a Better Phoenix. The group submitted 40,000 initiative petition signatures to the Phoenix city clerk on November 28, 2018. The city clerk verified that more than the required 20,510 signatures were valid, sending the initiative to the ballot. In Phoenix, initiative petition signatures must equal 15 percent of the voters who voted in the previous mayoral election.[22][23]

Lawsuit

  
Lawsuit overview
Issue: Petition summary and pay-per-signature; whether the language on the petition was misleading and whether pay-per-signature was used illegally.
Court: Filed in Maricopa County Superior Court, appealed to the Arizona Court of Appeals and then to the Arizona Supreme Court
Ruling: Ruled in favor of defendants initially and upon both appeals, allowing the measure to remain on the ballot
Plaintiff(s): Arizona Chapter of the Associated General Contractors of AmericaDefendant(s): The city of Phoenix and Building a Better Phoenix (the initiative's sponsoring group)
Plaintiff argument:
The initiative should be blocked from the ballot because the summary of the initiative on petition sheets was misleading and sponsors paid petitioners according to the number of signatures collected, which violated state law, according to plaintiffs.
Defendant argument:
Restricted to 100 words, as required, the petition language cannot be a comprehensive summary, but it did provide an explanation of the key provisions of the initiative and, therefore, the initiative petition drive was valid. Also, the ban on pay-per-signature applies only to statewide ballot measures, not to local ballot measures.

  Source: Arizona Supreme Court, Ahwatukee Foothills News, KTAR News

In January 2019, the Arizona chapter of the Associated General Contractors of America (AZAGC) filed a lawsuit against the initiative, stating that the petition summary was misleading and that the measure should be removed from the ballot. The lawsuit also argued that sponsors paid petitioners according to the number of signatures collected and that their payment process was illegal according to state law. On April 12, 2019, Maricopa County Superior Court Judge Sherry K. Stephens ruled against the contractors' association, allowing the initiative to remain on the ballot. The judge stated that the petition summary was sufficient and that it "is not a complete description of the measure but need only describe the major aspects of the proposition. It is unreasonable to expect a summary that cannot exceed 100 words to fully describe the complex funding process for light rail projects and all variables related to that funding process."[24]

The lawsuit argued that the petition language was misleading because it did the following:

  • failed to state that the measure might change existing light-rail lines by prohibiting funding for maintenance,
  • failed to clarify exactly what existing light-rail funding would be directed to other transportation projects by leaving out the effect on federal and regional light rail funding, and
  • implied that the initiative would save money in the city's budget while, in fact, it would redirect it.

On April 15, 2019, the AZAGC appealed the ruling to the Arizona Court of Appeals. AZAGC President David Martin said, “We are compelled on behalf of our membership and Phoenix voters to appeal this decision to the Court of Appeals and all the way to the State Supreme Court, if necessary. The plain language of the initiative is misleading, and the signatures were paid for on a per signature basis which is clearly contrary to state law. Judge Stephens’s opinion was written as if she knew this matter would be appealed, and she was right.”[25]

On June 6, 2019, the Arizona Court of Appeals upheld the lower court's ruling and allowed the initiative to remain on the ballot.[26]

Plaintiffs appealed the case to the Arizona Supreme Court. On July 24, 2019, the state supreme court ruled to uphold the decisions of the lower courts and allow the initiative to remain on the ballot. The ruling stated that the pay-per-signature ban in state law only applied to statewide ballot measures, not to local ballot measures. The ruling also stated that the lawsuit's arguments against the accuracy and clarity of the initiative description failed because (a) the measure would not prohibit funding for maintenance of existing light rail lines; (b) initiative descriptions do not have to summarize all of the potential effects of an initiative, making a description of the initiative's potential effect on federal or regional funding unnecessary; and (c) the description was clear about redirecting, as opposed to generating, revenue.[27]

See also

External links

Support

Opposition

Footnotes

  1. 1.0 1.1 Phoenix City Clerk, "Ordinance S-45624," accessed July 5, 2019
  2. 2.0 2.1 2.2 2.3 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
  3. 3.0 3.1 Building a Better Phoenix, "Home," accessed July 5, 2019
  4. AZ Family, "Prop. 105 campaign over light rail expansion in Phoenix heats up," July 8, 2019
  5. 5.0 5.1 Phoenix Elections, "Sample Ballot and Publicity Pamphlet, August 27, 2019," accessed July 24, 2019
  6. Facebook, "Councilman Sal DiCiccio," accessed July 24, 2019
  7. 7.0 7.1 7.2 Invest in PHX, "Home," accessed July 22, 2019
  8. The Greater Phoenix Chamber, "GREATER PHOENIX CHAMBER ANNOUNCES POSITIONS ON CITY OF PHOENIX BALLOT MEASURES," June 26, 2019
  9. Valley Metro, "Just the Facts," accessed July 22, 2019
  10. 10.0 10.1 10.2 Phoenix City Government, "Search Political Committee Contributions," accessed August 8, 2019
  11. Note: This contribution total is for the committee registered to oppose both Proposition 105 and Proposition 106. The campaign registered to oppose both measures together.
  12. Arizona Free Enterprise Club, "Staff," accessed August 23, 2019
  13. AZ Mirror, "Effort to kill light rail bankrolled by less than a dozen people, records show," August 26, 2019
  14. 14.0 14.1 AZ Central, "Phoenix election: What you need to know about Proposition 105 and Proposition 106," August 21, 2019
  15. 15.0 15.1 15.2 15.3 15.4 Valley Metro," History and Funding," accessed July 25, 2019
  16. Cronkite.asu.edu, "METRO Light Rail History 1996-2009," accessed July 25, 2019
  17. 17.0 17.1 Transportation 2050, "Funding," accessed July 26, 2019
  18. Valley Metro, "Valley Metro Rail FY18 Budget: Executive Summary," accessed July 25, 2019
  19. AZ Central, "Facts behind the south Phoenix light-rail rhetoric," July 16, 2018
  20. Valley Metro, "South Central Extension/Downtown-hub," accessed July 25, 2019
  21. Valley Metro, "Ridership Reports," accessed July 25, 2019
  22. AZ Central, "Phoenix voters may again decide the future of light rail," November 28, 2018
  23. AZ Central, "General contractors group challenging legality of light-rail-ending initiative," January 2, 2019
  24. Ahwatukee Foothills News, "Judge rejects challenge to south Phoenix light rail vote," April 12, 2019
  25. Arizona Chapter of the Associated General Contractors of America, "Contractors File Appeal on Light Rail Decision," April 17, 2019
  26. Arizona Daily Independent, "Yes On Proposition 105 Heads To Ballot," June 6, 2019
  27. Arizona Supreme Court, "Arizona Chapter of the Associated General Contractors of America v the City of Phoenix," July 24, 2019