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Aeronautics Program Revenue Assumptions


Federal Funding

The MDOT Aeronautics Program revenue assumptions include an extension of the Federal Aviation Administration (FAA) and aviation programs through FY 2023 with the FAA Reauthorization Act of 2018. This includes the Airport Improvement Program (AIP), with $3.18 billion annually in entitlement and discretionary grant funds to more than 3,300 eligible airports nationwide. Of Michigan’s 226 public use airports, 95 are eligible for federal funding and current funding levels were estimated based on previous years' levels. At this time, FY 2024-2026 federal funding levels are uncertain and are estimated to increase or remain at current levels.

State Funding

The State Aeronautics Fund (SAF) revenue comes from sales tax and excise tax on aviation fuel and the Airport Parking Tax (APT). Revenue from the APT supports debt service for bonds issued and disbursed in the early 2000s, to be repaid through 2032. As the bond debt is paid, revenue received from the APT can be dedicated to the capital outlay budget.