Airport Projects & How They Are Funded

Christopher Roy

by Christopher Roy, Director

Though winter still has a grip on the upper Midwest, the days continue to get longer and that fact alone makes many of us dream of spring. In just a couple of months we’ll be rolling up our sleeves and enjoying the warmth of the sun and another potentially exciting season of flight. It is also a good time to share a few thoughts about just a sampling of projects scheduled for starting and/or completion this coming summer.

For nearly three years, progress has been made toward the completion of a number of significant improvements at the Albert Lea Municipal Airport (AEL). These improvements include the realignment and lengthening of the main runway and a new crosswind runway. This nearly $12 million project, continues to move toward completion in 2011.

Some additional projects include the beginning of Phase 1, of a $7.7 million project at New Ulm Municipal Airport (ULM). Construction on a new crosswind runway at Mora is a $1.8 million project slated to begin this construction season. Fleming Field in South St. Paul will get a pavement slurry seal ($70K), and Winsted will update their airport zoning ($50K) in preparation for future expansion. These and a number of other projects will begin or be completed by this summer’s end.

This is just a brief sampling of the range of projects the Minnesota Office of Aeronautics supports. Funding of these and similar projects may come from federal, state, and local sources.

There is often much confusion or misunderstanding about how the Office of Aeronautics is funded from the State Airports Fund. The State Airports Fund receives revenue from four principle sources: Airflight Property Tax, aviation fuel tax, aircraft registration, and investment income. This income provides us with the money to run the office and provide services to Minnesota’s air transportation system.

The Airflight Property Tax is that tax paid by the airlines in lieu of other taxes on their flight property, such as aircraft and aircraft parts (Minn. Stat. 270.075(1)). Aviation fuel tax is the tax applied to each gallon of aviation fuel in a graduated (sliding) formula according to the amount of fuel purchased (Minn. Stat. 296A.17 (3) (1-4)). Aircraft registration: Aircraft owners pay an aircraft registration fee in lieu of other taxes on an aircraft (Minn. Stat 360.018 subd 1(1)). Investment income is derived from monies in the State Airports Fund that are invested by the State Board of Investments. [Minn. Stat. 360.017].

Airport projects may be funded federally if the project meets certain criteria. State money may be available for airport projects. For an airport to be eligible for any state funding, the airport must be included in the state airport system, publicly owned, and open to the public. It must also be licensed by the State, and zoned in accordance with Minnesota Statutes.

The mission of the Mn/DOT Office of Aeronautics is to promote aviation and enhance aviation safety by assuming a leadership role. This is accomplished by providing innovative educational, technical, and financial assistance for developing and maintaining an excellent and safe air transportation system. We do this proudly, for the social and economic benefit of all Minnesota citizens.

For more information about the Minnesota Office of Aeronautics, go to our website at: http://www.dot.state.mn.us/aero/

This entry was posted in Airports, Columns, Feb/March 2011, MN Aeronautics Bulletin. Bookmark the permalink.

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