Saturday, March 02, 2002

Iowa's Transportation Appropriation Bill Eliminates Aviation Funding

Airport Capital Improvement Program in Jeopardy

SIOUX CITY, IA - Glenn Januska, Director of the Sioux Gateway Airport/Col. Bud Day Field, reported that the State’s Transportation Appropriation bill removed the line item for aviation yesterday.  The State aviation funding from the General Fund has been decreasing, from $2.5 million in fiscal year 2000 to $2.1 million in fiscal year 2002 and in fiscal year 2003 it is being proposed to be eliminated completely.  This money is used to fund the State’s Airport Improvement Program for general aviation airside improvements.  It also funds the State’s Commercial Service Marketing Program that provides grant money to commercial service airports for marketing efforts to retain and attract improved air service, and also the State’s statewide marketing program to increase aviation activity in Iowa.

The Capital Infrastructure Appropriation Bill which funds the State’s $500,000 General Aviation Vertical Infrastructure Program, providing funding for general aviation for hangars, terminals and maintenance facilities, and the $1 million Commercial Service Vertical Infrastructure Program that funds the same types of projects for commercial service airports may also be eliminated when it comes out of Committee.

Aviation in Iowa has been operating in a donor mode.  In fiscal year 2000, aviation activity generated $8.15 million for the State’s general fund through the collection of aircraft sales tax, aviation and jet fuel tax, and aircraft registration fees.  The most money the State has returned to aviation from the general fund is $2.5 million.  “It now appears the State does not want to reinvest anything back into aviation, an industry that had an $834 million dollar Statewide economic impact in 2000 and sustains 9,865 jobs,” said Mr. Januska.

For Sioux City, the impact from the Transportation Appropriation Bill would eliminate $33,000 in airport marketing funds that would scale back or eliminate newspaper and radio advertising, public relation activities, market research, current and prospective airline visits, general advertising, specialty items, and promotions.

“If the Capital Infrastructure Appropriation Bill eliminates the Commercial Service Vertical Infrastructure Program, Sioux Gateway Airport would lose approximately $75,000 next year, money the Airport has utilized for much needed repairs and expansion of the Airport maintenance facility,” said Glenn Januska.  “Obviously, these impacts would severely hamper our efforts to grow and develop the Airport. It seems odd that at a time when the State faces hard economic conditions that cutting funds necessary for airports in the State to grow, and in some cases to survive, is considered prudent.  To me, now is the time to invest more in the aviation system since it is so key for statewide economic development, global competition, attracting and retaining businesses in the State, particularly since the programs which are proposed to be cut are funded by the people who use the system.”