Although dollars from the state’s aviation fund will continue to be used for non-aeronautical purposes, the Arizona Department of Transportation (ADOT) reported as good news that $2 million less was transferred out to help meet deficit woes. 
The Arizona Airports Association (AzAA) reported recently that they received a response to a letter they sent last month to John Halikowski, Director of ADOT, objecting to a scheduled $6.5 million sweep of the State Aviation Fund.
Casey Denny, President of AzAA, said in an announcement to membership, that while disappointed that aviation funds are being used for non-aviation purposes, he was encouraged by several things outlined in or represented by the letter.
In his response to AzAA, Halikowski acknowledged that he understood the concerns about the State Aviation Fund, expressed by Denny in his June 1st letter, but again noted that ADOT had reviewed its existing fund balances along with the constitutional limitations and statutory requirements of the agencies various funds and determined that the only available funds to fill the $6.5 million shortfall based on required transfers were from the State Aviation Fund.
In his letter dated June 1, 2010, Casey noted that the Arizona State Legislature had directed the sweep from ADOT’s Equipment Fund, not the State Aviation Fund.
The good news, according to Halikowski’s letter, is that ADOT only needed to transfer $4.5 million from the State Aviation Fund.
Denny expressed hope that the reduction in the fund balance transfer from $6.5 million to $4.5 million may help speed the processing of outstanding reimbursement requests from airport sponsors.
ADOT has made $4.1 million in deferred payments within state fiscal year 2010. Halikowski said in his letter that 100% of deferred payments are scheduled to be completed by January 2011.
Denny responded in his memo to membership, that hopefully that will free up cash for our sponsors so that they can continue to accept future grants.
The AzAA Board of Directors will be discussing this issue among others at its next Board meeting on Tuesday, July 27.
