Aviation funding in Massachusettes

Gregg Andrews called a pilot meeting out at Spencer on Wednesday September 21st. His topic the changover of MAC appointees under the current administration, Aviation funding in Massachusetts and the difficulties that small private airports have in obtaining funds for airport improvements. He is calling for fairness in allocation of funds between Private and Municipal airports, and some prioritization of projects that would contribute to airport survival. He makes a very good point:

Four private airports have closed over the past year or so!

(Palmer, Norfolk, Shirley, and Oxford) Certainly it is not all due to funding issues - pressure for land development is certainly a big factor. But as our smaller airports deteriorate, it becomes more and more difficult for them to remain viable. I'll try to review Gregg's points here and suggest a possible role for WAPA.

Aviation Funding in Massachusetts

Aviation funding in Massachusetts is managed out of the Transportation budget of the general fund. Aviation funding comes from several sources:

  • Fuel Taxes
    • $0.194/gal Federal Tax goes into the Capital Improvement Fund
    • $0.155/gal now goes into the General Fund.
  • Aircraft Registration Fees
  • (Sales Tax is currently suspended)

The funds flow into the Transportation fund, and then from there flow out to Aviation, Highway, Marine and other transportation projects in the state. This year, the money set aside for Aviation is down 40%, while registration fees are up 40%. Prior to the current administration, these taxes and fees went into a "Retained Revenue Account" that was dedicated for Aviation. However the current administration doesn't support this approach, and Aviation taxes and fees end up in the General Fund with no Aviation set-aside.

Aviation in Massachusetts

There are 2572 registered aircraft, and currently 38 airports in Massachusetts.

  • 14 Privately Owned Public Use
  • 24 Municipal Airports
  • over 200 other private landing areas, seaplane bases and heliports

Airport improvements are funded with the following formulas

Funding Source Allocation of Funds
Federal Funded 95% Federal
  2.5% State
  2.5% Local
State Funded 80% State
  20% Local

Private Airports are not Eligible for Federal Funds However the MAC funding rules do not make any distinction. Any public use airport is eligible for state funding of improvement projects. The MAC charter was written to ensure that all public use facilies in the state can get support.

And the private airports do get used. For example, according to Roy Bourgeois, the most active GA runway in the state (during glider season) is Sterling. The Greater Boston Soaring Club moved their operations to Sterling in 1998. Each glider tow results in 4 operations, so they add up quickly. On a typical early summer weekend day there are 20-24 operations per hour - not even Logan does that on a single runway.

Why are small private, public use airports not getting help?

The problem is Leverage

As can be seen, there is a clear advantage to the State when funds are applied to a Federally qualified project. 95% of the project is paid out of the Federal budget, money flows into the state with benefit for employment and the economy. This places a significant emphasis on projects at Municipal airports. Ramps have been re-paved at Worcester, Southbridge ended up with a new dump truck, lawnmowers, a new ramp and a new building.

However at the same time, the runways had become nearly unusable at Oxford, and the airport is now closed and used for Truck Parking. Spencer needs runway work and tree removal, Marlboro needs runway repairs, and the list goes on.

  • Priority is given to projects that bring in Federal $$$. The leverage
  • Limited priority is given to airport survival, and our airports continue to close

The problem facing private airports

The reality is that small private airports are often living on the edge of survival. Gregg mentioned a potential runway repair project at Marlboro is estimated to be a $1,000,000 project. Even if the project is given priority, per the 80/20 funding, Marlboro would have to raise $200,000.

  • In 2004, $7,000,000 was spent on airport projects,
    • $0 went to private owned public use airports.

Fair Distribution of Funds

Taxes are paid by all of us. All airports compete for the same small group of pilots, students and aircraft. Fuel Taxes and Registration Fees are collected regardless of what airport we fly from. And private airports are required to maintain the same safety standards. But the tax revenue doesn't flow back evenly. Indeed in 2004, it didn't flow back at all.

Pilots are not a vocal bunch

Representative Anne Gobi attended the meeting, and is a member of the powerful Ways and Means committee. She is also part of a newly formed Aviation Caucus. She pointed out that she has not heard from any pilots regarding funding, or taxes. For example, the Aviation Sales Tax exemption which has helped put Massachusetts on an even tax footing with Massachusetts and Connecticut, is due for renewal this year. Our representatives need to hear from pilots if the exemption is to be continued.

Suggested solutions

Asking for "fairness" in allocation of funds is a rather difficult concept. Everyone has their own definition of "fair". Howver if our priority is to ensure survival of our airports, the following ideas might work toward that objective:
  • Ask MAC to place special priority on projects that directly impact safe operations
    • Runway repairs
    • Tree removal
    • Runway lighting, etc.

  • Priority projects that impact safety should have the "20% Local Funds" requirement waived.

  • Renew the State Sales Tax exemption for aviation parts and services. (The sales tax exemption keeps Massachusetts businesses on an even footing with New Hampshire and Connecticut, neither of which tax aviation equipment.)

Call for Action

Contact your State Senators and Representatives and express your opinion.

-- GeorgeClark - 23 Nov 2006
There is an art . . . to flying. The knack lies in learning how to throw yourself at the ground and miss. --Douglas Adams

Copyright © by the contributing authors. All material on this collaboration platform is the property of the contributing authors.
Ideas, requests, problems regarding WAPAWeb? Send feedback
This website is using cookies. More info. That's Fine