In a report to the Michigan Aeronautics Commission (MAC) at their meeting in Lansing on March 27, Aeronautics Commission Director Mike Trout reported that Fiscal Year (FY) 2019 revenue from the aviation fuel excise tax is up $1.2 million compared to FY 2018. For the sales tax on aviation fuel, it is seeing a $999,342 increase this fiscal year.
These fluctuations are typical due to seasonal and other factors but are not necessarily considered trends. Trout presented the 2020-2024 Five-Year Transportation Plan to the MAC showing costs projections will be $700 million for the Airport Capital Improvement Program and $1.2 million for the Air Service Program.
These needs create a significant funding gap between requests and resources. Trout cautioned that state aeronautics funding levels are a challenge as revenue from sales tax have never reached the estimated amount from 2015, despite some growth this fiscal year. “Our investment strategy is to preserve critical infrastructure, particularly pavements, navigational aids, and protect airspace,” Trout said. “We maximize federal funds by leveraging state, local, and private funding.”
