Madam chair convened the House Appropriations Subcommittee on Transportation for a briefing on state support for aviation, where MDOT and airport executives described current funding sources and urged action to avert a future funding gap.

William Hamilton, who opened the briefing with a budget overview, said the state transportation budget is roughly $7.8–7.9 billion, with federal revenue around $2.3 billion and state-restricted revenue about $5.4 billion. Hamilton said approximately $330 million is appropriated for aeronautics programs in the current budget, and roughly $317.1 million (96%) is directed to capital outlay grant programs that provide capital assistance to publicly owned, public-use airports.

Lynn Smith of the Michigan Department of Transportation’s Office of Aeronautics described MDOT’s role administering federal and state aviation funding through the Michigan Aeronautics Commission. Smith said the department administers Airport Improvement Program grants (established in federal law, Title 49 of the U.S. Code) and newer federal programs funded through the Infrastructure Investment and Jobs Act. She outlined state-restricted revenue sources that feed the State Aeronautics Fund—including aviation fuel taxes, an aviation sales-and-use tax earmark, and an airport parking tax tied to Detroit Metropolitan Wayne County Airport—that help provide the state match for federal grants.

Smith warned that the parking-tax revenue that contributes to state match obligations is scheduled to retire in 2030 and said that sunset would create a gap in the state’s ability to meet federal matching requirements if not addressed. She also said Michigan is a federal block-grant state for aviation, which allows MDOT to apportion federal funds to general aviation airports based on state priorities.

Craig Williams, speaking for the Michigan Association of Airport Executives, emphasized airports’ local economic roles and the scale of infrastructure needs. Williams cited a projected $2.9 billion in infrastructure needs for Michigan airports from 2025–2029 and said FAA funding is expected to cover about half of that amount, state funding roughly 10%, and airports themselves the remaining 40%. He said the state’s $50,000 air-carrier recruitment line item is insufficient to compete with neighboring states and urged continued support for air-service development programs and extension of the Detroit Metro parking-tax authority when it is scheduled to end in 2030.

Committee members asked MDOT about staffing and regulatory work. Smith said MDOT’s aeronautics division has 48 full-time positions (with some vacancies) and described the Michigan Tall Structures Act, which requires reviews of structures that may affect airspace; she said about 6,000–7,200 applications are reviewed annually, and any structure 200 feet above ground requires review.

Representative Ward moved to adopt the committee minutes from an earlier October meeting; with no objections the motion prevailed. The chair adjourned the meeting after brief procedural items.

The presenters left written materials and offered to return for follow-up as the subcommittee considers aeronautics funding and potential changes to revenue structures and match requirements.