NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

Aviation Division, State Highway and Transportation Department

SUMMARY

Synopsis of Bill

House Bill 776 changes eligibility requirements for statewide airports authorized to receive money from the State Aviation Fund for construction, development and maintenance of public airports, including rural landing fields and airstrips. It allows airports using aircraft up to a maximum of 60 seats (up from 30) or a maximum payload capacity of 15,000 pounds (up from 7,500).

Significant Issues

The purpose of this bill is to allow state funding for larger airports. It doubles limitations in current law.

The bill would have a negative impact on state aviation funds available for the sixty smaller airports in the state.

The following funding options are available to the three larger airports which are not available to the sixty smaller airports.

• •One million dollars per year entitlement funds



• •Passenger Facility Charge ($3 per airline ticket)



• •Auto parking, rental car fees, ticket counter leases, etc.

FISCAL IMPLICATIONS

This bill would require a reduction in funding available per airport for matching local and federal funds or require an increase in revenue for the State Aviation Fund to maintain existing funding levels to smaller airports.

ADMINISTRATIVE IMPLICATIONS

This bill would require the Aviation Division to administer additional projects.

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