Bill Blake
by Bill Blake, AOPA Great Lakes Regional Representative
As I write this column at the end of 2010, I would like to review the state aviation legislative issues in the Great Lakes Region. In summary, I think we had a pretty good defensive year. There were no new or increased state taxes or fees placed on aviation or aviation fuel in the five states in the region.
AOPA spent most of 2010 opposing a state aviation fuel tax change in Michigan from $.03 a gallon to what was ultimately proposed, a 4% tax on the wholesale price of aviation fuel. At today’s fuel prices, that would have resulted in a significant tax increase. Fortunately, legislative leaders declined to support the change. In December 2010, the Michigan Business Aviation Association, the Michigan Association of Airport Executives, and AOPA urged the passing of a bill that would dedicate part of the state sales tax on aviation products and aviation fuel to the state airports fund. We all believed that some of the tax on aviation should be dedicated to support state aviation facilities. This seemed particularly fair since the tax being charged to buyers of aviation products and fuel had dramatically increased due to the rapidly increasing fuel and product prices. However, with the state of Michigan’s budgetary problems, the state legislature was not willing to dedicate taxes to aviation that would otherwise go into the state general fund. I feel certain that during the new legislative session we will be addressing these same issues again. However, due to term limits and a significant number of new legislators being seated, one cannot forecast the same result as 2010. AOPA will continue to oppose any fuel tax based on a percentage of the price of fuel.
As you may remember, the Minnesota Business Aviation Association (MBAA) proposed a change in the aircraft state registration fees and fuel tax on jet fuel. Its proposal would have had little impact on the smaller general aviation aircraft owner. The proposal was designed to be revenue neutral. However, the bill that was introduced in 2010 included all aviation fuel and changed the formula. The bill was not called for a vote, I suspect because there was no appetite in the state legislature to address any tax matters in an election year. I expect to see some version of the bill re-introduced in 2011. AOPA will be watching the session closely and will continue to work to protect our members’ interests.
Although both Illinois and Wisconsin have budget issues and have reduced some of the services that used to be available to the aviation community, both have continued to meet the state-matching share for federal airport improvement grants.
The state of Indiana lowered its contribution of matching funds for the federal Airport Improvement Program grants from 2.5% to 1.25% last year. The legislative budget planning has started for the next budget cycle. I believe the local airport sponsors, who have had to make up the 1.25% shortfall in matching federal grants, will work to have adequate funds included in the state budget allowing the state to return to providing a 2.5% match on federal airport grants. It is important that the state’s airport infrastructure be properly maintained to ensure the economic boost airports provide will continue, particularly in the smaller communities.
By the way, airport users at one Minnesota airport recently made it known how important an airport manager was to them. The South St Paul City Council in November of 2010 listed the airport manager position among several municipal jobs to be cut or scaled back. The local pilots were shocked at the news and quickly sought a meeting with the elected officials. They offered to raise $42,000 to fund the manager’s salary for 2011. The airport’s largest tenant, Wipaire, Inc., sweetened the offer by proposing to match other tenants’ contributions to reach the $42,000 goal. AOPA wrote to the council explaining the importance of a full-time professional manager and asking that the position be retained. It is hoped that the council will reinstate the position and look for other cost-cutting measures.
Think about how important your airport manager is to you. On some of our smaller airports, the manager is both the airport manager and fixed base operator. Doesn’t this person deserve our support? Without a professional airport manager, the utility of our airplanes is reduced.
As I said at the beginning of this column, we had a pretty good defensive year in 2010. I would like to be more proactive promoting expanding state support for aviation. However, in all honesty, with the weak economy and struggling state budgets, I think 2011 will be another year of trying to protect what we already have. Keeping informed and letting your elected officials know your views about the value of general aviation and continuing state support is very important.
As you probably know, AOPA and other national aviation associations are working together to try to improve the student pilot completion rate. Increasing the volume of aviation activity in the U.S. would go a long way toward solving many of our aviation issues. So get out there and go flying. Take a friend with you when you can. Who knows, the aviation bug might also bite him or her. It is a time when aviation could and should flourish. Due to the retirement of many professional pilots, the forecast for pilot career opportunities is the best it has been in years. But even for those not seeking a career in aviation, becoming a pilot greatly enhances the quality of life for not only the pilot, but also the pilot’s family.
For more information on these and other issues facing general aviation, please visit www.aopa.org.
