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STATE BUDGET

State funding support for New York airports is primarily available from three programs: Upstate Airport Economic Development and Revitalization Initiative, Aviation Capital Grant Program (AIR 99), and the Airport Improvement Program. Appropriations for these programs are found in the state’s Capital Projects budget bill. NYAMA works closely with the Governor’s office, Department of Transportation officials and State Legislators to assure adequate levels of funding for investments in airport infrastructure needs.

Upstate Airport Economic Development and Revitalization Initiative

  • NYAMA commends Governor Hochul for spearheading the $250 million Upstate Airport Economic Development and Revitalization Initiative to transform and modernize airports in Upstate New York and foster regional economic development.
  • $200 million in capital funding through the Upstate Airport Initiative approved in the 2016-2017 state budget succeeded in modernizing and transforming six of these gateways to our communities.
  • A second funding round was made available in 2022 to direct $250 million for nine additional airport projects that will help assure air service, economic opportunity, and job creation in these upstate communities.
  • The grant dollars leverage tens of millions of dollars in private sector investments.
  • The program funds terminal expansion and modernization, construction of cargo receiving and distribution centers, new retail and concession options, general aviation customs facilities and much more that will improve the overall passenger experience at these airports.
  • The Upstate Airport Initiative develops, designs, and executes transformative projects that are having a tremendous impact on the quality of aviation services and customer experiences at these facilities.
  • Several airports and communities stand to benefit from additional state investments, positioning them to attract or regain scheduled commercial or charter service in many underserved areas of the state.

NYAMA is urging that the Executive Budget include an appropriation of $250 million for a 3rd Round of funding for the Upstate Airport Economic Development and Revitalization Initiative.

Support Increasing the Aviation Capital Grant Program to $40 Million Annually

  • The 2022-2023 Executive Budget appropriation for the Aviation Capital Grant Program is again at the lower $12.5 million level.
  • This is the fourth consecutive year of a $10 million reduction from the program’s previous levels of $22.5 million.
  • The previous 5-Year Capital Program averaged just $16 million per year for the Aviation Capital Grant Program.
  • Should a new round of funding for the Upstate Airport Economic Development and Revitalization Initiative be approved, there would be an additional $20k-$30k available for the Aviation Capital Grant Program.
  • The Aviation Capital Grant Program is a critical funding source especially for smaller GA and commercial service airports because it funds projects to support safety, infrastructure, and economic development that are not eligible for funding under the Federal Airport Improvement Program (AIP).
  • The number of funding applications submitted is artificially low as many airports cannot devote scarce resources to design and engineer projects and go through the expense of the application process if there is little chance that they will secure a grant due to the lack of significant program funding.
  • Underfunded at $12.5 million next year, NYAMA expects a further and more pronounced demonstration of unmet need.

NYAMA is urging the Legislature to support increasing the Aviation Capital Grant Program to $40 Million Annually.

NYAMA Article VII BUDGET Proposal TO INCREASE MAXIMUM GRANT AWARD

  • NYAMA urges that the Executive Budget raise the maximum grant award for the Aviation Capital Grant Program to up to $5 million.
  • NYAMA supported increasing the maximum grant amount when it was raised from $1.5 million to $2.5 million in the enacted 2021-2022 budget.
  • Now, due to double digit inflation, the maximum award should be higher, and set at an amount commensurate with the size of the appropriation for the program for a given year or solicitation.
  • The Aviation Capital Grant Program is available to public-use airports throughout the state and is a critical source of aviation infrastructure financing for such projects as terminal improvement and expansion projects, hangar construction, parking facilities, the purchase of equipment, the purchase and installation of navigational aids and projects which address safety.
  • Most of the projects funded by this state program are not eligible for funding under the federal AIP program.

NYAMA urges that the Aviation Capital Grant Program award cap be raised to a level above the current $2.5 million and be adjusted based on the size of the program solicitation up to a maximum of $5 million.