Arkansas airports may have to wait to get improvements at their airports, including hangar renovations, terminal improvements, fuel and security systems. A reported drop in sales tax revenue has led to a decision by the Arkansas Aeronautics Commission to cut back on grants.
It was reported in the Department’s latest newsletter that they will remain ever vigilant in using aviation tax dollars in the most efficient and economical manner possible but with this in mind, the Aeronautics Commission decided to adjust the grant program to avoid over-committing grant funds.
Beginning with its April 11, 2012 meeting, the commission is entertaining grant requests for funds matching FAA AIP grants only. The department has seen a significant reduction in their income over the past few months and are currently $3 million behind this same time last year. While the program is still healthy, the commission decided it would be prudent to limit fund expenditures until aviation tax collections (income) stabilize.
The FAA has changed their funding formula in a way that will require airport sponsors to pay an increased percentage of project costs. The Department is still reviewing the impact this will have on the state aviation system.