If
the timeworn saying “it takes money to make money” ever rang
true, it’s now. The Des Moines International Airport’s
infrastructure requirements financially exceed available government
funds. There are far too few dollars to promote growth in the
aviation industry. And, according to a recent report from the
Committee on Air Service, travelers lack sufficient air service cost
and location choices.
Realizing
that a business cannot thrive without reinvesting in its products,
services and facilities, the Des Moines Airport has asked the 2001
Iowa Legislature to fund its proposed Aviation Development Support
Program.
“We
have invested over $95 million during the past 4 years to improve
our facilities in Des Moines and we will be investing another $95
million during the next 3 years to continue our expansion and
modernization program,” said John R. Fitzgibbon, Chair of the Des
Moines International Airport Board. “We must have greater
financial investment from the state in order to provide the type of
facility we need to attract the level of service our customers
demand.”
The
Airport has asked the Legislature to:
•
Establish an Aviation Investment Fund, receiving state tax and use
fee revenues related to aviation activities;
•
Appropriate $2.5 million from the General Fund for the fiscal year
beginning July 2001;
•
Appropriate $1.5 million from the Rebuild Iowa Infrastructure Fund
to assist with infrastructure projects at Iowa airports beginning
July 2001; and,
•
Establish an annual appropriation from the aviation investment fund
beginning July 2002 and to direct all revenue from aviation
gas/fuel, jet fuel, aircraft registration fees, and aviation use tax
revenue to the aviation investment fund.
The
Legislature has a history of assisting Iowa’s aviation industry. A
state aviation trust fund was first established here in 1946. The
fund, by 1988, included registration fees, an excise tax of 8 cents
per gallon on aviation gasoline and 3 cents on the gallon for
special aviation fuel. Excluding sales tax on aircraft, this now
represents $2,185,000 annually. Over the years, legislation was
changed several times. Today, more than $8 million in aviation taxes
and fees, including sales tax on aircraft and aviation parts, are
deposited in the state’s General Fund. The Airport believes that
money generated by the industry should be used to support Iowa’s
aviation activity.
“The
future of aviation in Des Moines depends on continual investment in
our airport,” says Fitzgibbon. “The facts are that Des Moines
accommodates over 50 percent of the state’s commercial passengers,
over 75 percent of the state’s air cargo, and is the state’s
busiest general aviation airport, yet receives only 10 percent of
the state’s annual airport funding. Users of our airport expect
the fees they pay to be reinvested in the facility which will
facilitate and encourage continued economic growth. Without
question, establishment of an Iowa Aviation Trust Fund is critical
to the future of the Des Moines International Airport.” |
Aviation
and Development Support Program
The
Des Moines International Airport is a vital player in Iowa’s
economic success. It strives to bring superior, affordable
commercial air service to all travelers. General aviation provides
an additional form of economic benefit by way of business and
agricultural uses, charter services and flight training. And air
cargo is the fastest growing segment of the industry in Des Moines.
Therefore, the Airport proposes the following Aviation and
Development Support Program elements:
Capital
and Economic Development: Provide funding for landside
improvements, such as hangars, terminals, parking lots and fuel
facilities. It would also provide funding to Des Moines for
immediate economic development opportunities via grants, loan or
combinations thereof, based on capital investment and jobs.
State
Airport Improvement: Provide funding for such projects as
pavement marking, windsocks, AWOS installation/ support, aviation
promotion/education, and facilities/equipment purchases.
Air
Service Development: To help retain, improve and attract
commercial air service by funding the collection, analysis and
dissemination of information to Des Moines in order to enhance air
service and create additional competition opportunities. It would
fund the expansion of the Commercial Air Service Marketing program
and provide state access to an additional discretionary funding
program for statewide air service promotion and marketing
initiatives. And it would fund airline incentives to improve and/or
increase services to new hub airports. The money could be used for
such things as marketing, covered passenger walkways and boarding
bridges, or airline start-up or expansion costs. |
