Funding for GA Airports

[drseti]

Today, Timothy Obitts, CEO of the National Air Transport Association (a lobbying group) wrote this about GA provisions of the Moving America Forward Act (H.R. 2) just introduced in Congress.

"The bill increases the authorization for the Airport Improvement Program (AIP), and provides the funds from the Treasury. It also sets aside 4% of those funds for general aviation airports. "

I answered his email thus (with cc to all the GA alphabet soup organizations):

Of the 19,000 landing facilities in the US, about 500 (or 2.6%) receive air carrier service. The balance are General Aviation (GA) airports. So, in this proposed legislation, that 97.4% of the airports is slated to receive a whopping 4% of the funding. How exactly is this legislation supposed to benefit GA?

Respectfully,
Dr. H. Paul Shuch
Chief Flight Instructor and Director of Maintenance
AvSport LLC, Piper Memorial Airport, Lock Haven PA

[drseti]

And just like that, I got an encouraging response from NATA:

Dr. Shuch,

Thank you for the question. As I trust you’re aware, the CARES Act provided $10 billion in federal assistance, of which only $100 million was allocated for general aviation airports.

You are also aware that the existing Airport Improvement Program (AIP) provides both general aviation and commercial service airports with federal funding for infrastructure projects allocated both by formula and in the form of discretionary grants. And as I’m sure you also know, outside of a couple notable exceptions, AIP funding levels have been stagnant at $3.35 billion for over a decade.

H.R. 2, however, proposes to broadly expand federal investment in airport infrastructure and operations, the latter of which have not previously been an eligible use of federal assistance to airports. This bill raises the AIP authorization level to $4 billion by FY25, a $650 million annual increase beyond current levels. The bill provides an additional $17.5 billion in supplemental funding beyond a $20 billion AIP authorization, which itself is equal to about $10 billion more than is authorized for the program through FY23 - the last year of the FAA reauthorization bill that Congress passed in 2018.

On the supplemental side, the bill proposes $3 billion in supplemental funding in FY21 and an increase annual funding by $250 million every year to $4 billion by FY25. In FY21, those monies may be used for a considerably more broad scope of purposes – including operational expenses which have not traditionally been an eligible use of AIP money - to help airports with COVID-19-related expenses such as cleaning, sanitization, debt service, and to provide financial relief to concessionaires and lessees. In addition, the bill proposes a 100% federal share for infrastructure projects. That is to say it essentially eliminates the normally required local matching funds.

While you’re correct that a proposed 4% set aside for general aviation airports within the supplemental program is indeed a small set aside, it could be vastly more funding than provided by the CARES Act and than would otherwise be provided by the normal AIP program. As you may have seen, NATA has been working hard to respond to the concerns of our members as the effects of the pandemic are felt by our industry. To that end, we have heard from a number of them that lease payments represent one of their largest fixed expenses. After passage of the CARES Act, the FAA directed airport sponsors to engage in discussions with their leaseholders on collaborative solutions to defer or abate such payments during the pandemic. NATA provided our members with guidance on how to begin those conversations, and has continued to raise the issue with policymakers on Capitol Hill.

Regards,
Jonathon Freye
Vice President, Government and Public Affairs
National Air Transportation Association

[drseti]

Herewith, my response to NATA's response.

Thank you, Jonathon, for the well reasoned response. I was, in fact, unaware of the proposal eliminating the local match for AIP grants.

My own airport needed two decades ago to front 10% on a terminal building renovation project (with the money going to a Master Plan, a consulting firm, an architect, and a draftsman - even before we knew whether the grant would be approved). Thus, I can see the elimination of the local match would, if enacted, be a major step forward (even though I still maintain that 4% is a paltry GA set-aside).

Safe Skies,
Paul

[Nsconductor]

Here is my question - how can one tell if their local airport has ever taken Federal Funds?

[drseti]

No simple way that I know of. The FAA probably has records for the grants they have administered. But "ever" is a long time. Before the FAA was formed, there was the CAA, and I don't know if their archives still exist. In addition, "federal funds" could encompass a whole host of other government agencies. There are aviation consulting companies that write master plans for airports, which would include researching such questions - but they are expensive. AOPA Airport Support Network appoints local point people to assist at many GA airports - I'd start by finding out if such a person exists for your airport, and ask him or her for insights.

[3Dreaming]

Typically the federal funds are handled at the state level. If you have a question about a specific airport I would suggest calling your states department of transportation, and if they have one the division of aeronautics. They should be able to shed some light. You could even look on Airnav for the airport ownership. If it is publicly owned it has likely used federal funding.

[Nsconductor]

Typically the federal funds are handled at the state level. If you have a question about a specific airport I would suggest calling your states department of transportation, and if they have one the division of aeronautics. They should be able to shed some light. You could even look on Airnav for the airport ownership. If it is publicly owned it has likely used federal funding.

Thanks. I’ll do that. I am considering lobbying to become a member of the Airport Authority here. Seems to me our local airport needs a few new faces making the decisions. Honestly I would like to get involved and help and am just trying to do a little homework up front before I talk to,the chair of the county commission who appoints the members..

[ShawnM]

Here is my question - how can one tell if their local airport has ever taken Federal Funds?

There's a very simple way of knowing, the FAA publishes a list every year of the "sponsored" airports that take grant money from the federal government. These airports who take grant money have a whole new set of rules to play by as well. The FAA publishes historical data online all the way back to 1996. It's all here for your reading pleasure.

https://www.faa.gov/airports/aip/grantapportion_data/

[drseti]

The FAA publishes historical data online all the way back to 1996.

When you put it that way, Shawn, you make me feel really old.

[ShawnM]

The FAA publishes historical data online all the way back to 1996.

When you put it that way, Shawn, you make me feel really old.

Oops, what I meant to say was the FAA publishes data back just a few short years.

Better?

[drseti]

Better?

[Cub flyer]

I own and operate a small GA airport 3100 ft paved runway with 70 based airplanes, 2 maintenance shops on the field, paint shop and avionics.

Because the airport is privately owned I’m not eligible for any of the funding discussed. It might be possible if we were included in the NPIAS program but I tried and was denied.

The PA bureau of aviation has some grant programs available but I tried going down that road and the system is so messed up its totally unworkable. I’d go bankrupt trying to follow the process and the amount of engineering required in addition to our local conservation district, zoning board, township and county plus FAA it’s beyond the possibility for a small business.

I have no problem with going alone and we are self supporting but the cost to keep approaches clear on land not owned by us to meet state and FAA rules is high

My complaint is the local federally funded airports use pricing for fuel, hangars, airplane rental (county owned airplanes) that is below my cost to break even. It would not even cover the cost of the mortgage to build hangar buildings at their rates. Not including property, taxes, power, floor and foundations, ground work. Yet the airports can pay employees to continue to write grant requests and babysit the grant through the entire process because they may be government funded for operating budget. I have a airport / aviation business to run and I could never dedicate the time required to chase this type of funding. We have employees and things have to come in and out of the door to pay the $12,000 airport mortgage each month.

I tried grant funding for improvements a couple times and it almost broke me. The gov agencies will change rules or process as they go and you can never budget for time or cost while engineering firms and consultants burn through any available cash.

Then the uncertainty of if the grant will pay out and if there will be delays on when it is actually paid. Awarded does not mean it’s a sure thing.

If your airport is trying to go this route for funding a project be very careful. I’m third generation airport owner and I’ve watched struggles with this my whole life. Remember they are NOT little airport people in government and the scope and reserves of a small airport project are not quite what the system is designed for.

[AGLyme]

There is a special place in heaven for folks like you...; )
An airport near where I live is (unadvertised) for sale... I dream about it, but the only income is hangar rental. I did the numbers on the back of a napkin and it doesn't come close to penciling... Maybe the price will come down enough so I can buy a lifestyle business. I grew up working at an airport and I loved it.

[drseti]

There is a special place in heaven for folks like you...; )

+1

[Cub flyer]

We are 100% aviation only business but I was lucky to have some things work out along the way to offset big disasters too. Any one could have been the end of it but we kept going and it’s ok even through the current global situation. Honesty I’ve been too busy in the shop to be affected.

But that being said it needs to be a mix of a lot of different incomes to keep things running each month. None are huge but they all work together and hopefully won’t all take a hit at the same time as the industry changes or unexpected things pop up. What you are doing now may be totally different next year or in 10 years. Business plan can be thrown out the window regularly.

If your looking at private owned public use airport there are a lot more freedoms. Hangar rent is pretty stable and in demand, Sometimes it’s the only stable income. If the buildings are in good shape there is no reason you could not have 100% occupancy with a waiting list. If not get creative and rent space for other compatible uses until demand comes up. Once government money is taken then you lose some of that flexibility especially if it was used to build buildings.

If it means the airport surviving and going to new owners then do whatever you have to do to save one more. For some reason I’ve found bankers get more comfortable when you tell them the similarities between how a private owned airport operates and a marina. They seem to get their head around that better.

A maintenance shop of some kind helps a lot with rent that can be paid. But I’ve found more profit in a small single or two man family shop than a large repair station. Spread out income across space rental, shop income, fuel and parts, plus some pilot service for example. Flight schools kind of support themselves most years so I usually kept them separate. Add in a buy and sell of a project airplane and it’s enough to keep the lights on.

But if you attempt government funding for some project and get trapped in the endless engineering, surveys, permits, government rule changes, matching shares, contractors, earth moving, conservation district, township politics, permit officers who don’t know their own rules, zoning changes, defective materials, defective engineering, engineering firms going out of business, repermitting, power companies, PA Fish and boat rules, PA labor and industry hearings, lightning strikes on equipment, insurance claims, contractor lost expected profits lawsuit, equipment breakdowns, PA Bureau of aviation reengineering requests for work you have already completed and are using, New engineers, 12 year grant planning, JCIP and PA Dot grant website frustration, Drone surveyors and Resurvey to show as built matches plans, Find out engineers didn’t submit the correct plans, more meetings, and you finally say ENOUGH and cancel the whole grant idea since you’ve already built most of it now. And realize that with all the earth work done there is no possibly way to afford the paving because it all went into items above that didn’t amount to squat. I ended up doing the earth work myself using old equipment I purchased or borrowed. But I’ll never be able to finish it in my lifetime. Now it puts me behind on normal maintenance like roofs and pavement seal coating. I’ve got no problem with spending money on things that are tangible but the endless studies and planning just ruins these projects. The state just ASSUMES you can pull another 40-60K out of your hat at any time.

I did do a partial state grant to buy property south of the airport to extend the runway back in 2008. It was a nightmare also. Just a small excerpt was when a piece of paper came in the mail. It had two numbers on it. I asked the wife what it was She said one number was our checking account number. I looked and they put the whole grant amount in there with no warning. But the amount was wrong. I called and they said “ Oh we decided to withhold $50,000 until you give us a copy of the recorded deed” I said the only way I get that is to pay for it!! So nobody would budge and I maxed out all the cards, drained everything. Borrowed what I could and to make the check clear I was literally pulling all the change out of my van console. I had already borrowed the local share $137,000 and was making payments on it. Then when I asked the state what language needed to be in the deed for grant assurances they would not give it to me. He said I had to hire an attorney to write the language and then they would review it. But my attorney was not a state aviation attorney so He had know idea what to write. This went back and forth for over a month with the unrecorded deed just sitting there. It was crazy. Finally I told him just record it and the state had a fit. I said you know I can’t leave it unrecorded and give me the language so I can add it as a covenant. Finally got the $50K back but it took a while.

T hangars are another good example. If it costs 200K my way the state way might end up being 400K. But for private owned the max grant is 50% state share so no reason to even start down that path. The trap is 100 K of that extra expense might be hidden and to find out you will spend 20K on consultants and engineers to give you that answer. That 20K can do a lot of good things and may be all the extra money available that year if there is any.

With the same 20K I could buy a new snow plow for the truck, seal the runway cracks, fix up lights and remark the runway. All tangible things which I’ll take anytime rather than some consultant to tell the state and I what they should already know to tell me up front. And all items which will be held against me on the airport inspection that year.

It makes you look at the whole situation and want to maybe sit in a chair in a dark room a while sometimes. Grants are tempting but I will NEVER go down that road again. And I make a point to bring up at each meeting what projects we complete or equipment I buy without them.

I also try to FLY to every meeting. Just because nobody else does.