It is important that you know…

by Cassandra Isackson
Director, Minnesota DOT Office of Aeronautics

You, as an aviator, aviation administrator or manager, or aviation supporter, need to know how your aviation tax dollars are put to work for you in Minnesota. I think you also need to care about and understand how the Airport Improvement Program (AIP) impacts aviation throughout Minnesota. The AIP and the projects it pays for are vitally important to aviation across the state and the nation.

First, there are four main sources of state aeronautics funding. Each source is a tax on aviation-related activities. The dollars come from aircraft registration tax, aircraft sales tax, aviation fuel tax, and airline flight property tax. These four funding sources provide approximately $18 million annually dedicated for use only on aviation-related projects and programs. The state’s airport fund is the primary funding source for MnDOT Aeronautics.

Additionally, Minnesota receives an average of $60 million per year in federal dollars via the Airport Improvement Program (AIP). The AIP provides federal grants-in-aid for planning and constructing airport projects such as runways, taxiways, buildings, lighting and navigational systems. MnDOT Aeronautics is working with airports in the state to channel these federal funds to projects.

Of the state’s 135 publicly owned/operated airports, 38 are eligible only for state funds, while 97 are eligible to receive federal dollars via the AIP and may also receive state funds. The 97 airports eligible for AIP funds are part of the National Plan of Integrated Airport Systems (NPIAS).

One very important issue for this federal congressional session is the AIP. Keep in mind that (even if your airport is not eligible for federal dollars) the more federal dollars available via the AIP, the more it will help to potentially make additional state dollars available to non-federally eligible airports.

Another important issue is the Minnesota governor’s budget. As proposed, MnDOT Aeronautics would receive the remainder of the $15 million that was borrowed for the general fund during the budget shortfall and use it to invest in some additional aviation projects in the 2016-17 biennium. So when you talk to your local leaders, you may want to let them know you support the federal Airport Improvement Program and the state airports fund portion of the governor’s budget proposals for Minnesota.

As I close my column for this issue, I will share one final thought…  Please invite me to come to your airport meeting, whether for your airport commission or board, local EAA chapter, a fly-in or another important aviation event. I look forward to the opportunity to answer questions about what we are doing to get money out there to benefit your airport. It also gives me a chance to meet you face to face, and you have the additional opportunity to share information to help us do an even better job for YOU!

This entry was posted in Columns, February/March 2015, MN Aeronautics Bulletin and tagged , , . Bookmark the permalink.

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