FAA: Guidance to Calculate Federal Share

 

FAA Issues Program Guidance Letter on Federal Share at Airports Located in Public Land States

Executive Summary: The Federal Aviation Administration (FAA) issued a PGL that establishes the methodology for calculating federal funding share percentages in states with large inventories of federally-owned land.

Link to the PGL: http://www.faa.gov/airports/aip/guidance_letters/media/aip-PGL-14-03-Public-Land-State-Fed-Share.pdf.

Who is Impacted: All airports with inventories of federally-owned land

Background:

  1. According to FAA, this is not a new policy but an attempt to explain the rather complicated methodology for calculating the public land state provisions. Public land federal share adjustments have been in place, in one form or another, for more than 50 years.
     
  2. The federal share varies by airport size and is generally 75 percent for large and medium hub airports and 90 percent for all other airports.
     
  3. Federal participation rates are a function of an airport's current size and statutory classification. An airport whose classification changes because of changes in enplanements is entitled to the adjusted federal share applicable to the new classification beginning in the next fiscal year after the change in classification.
     
  4. In 2012, Congress passed the FAA Modernization and Reform Act of 2012 which did not retain the increased general federal share provision of Vision 100. Most airports that had been receiving the higher Vision 100 share of 95 percent reverted to the prior general federal share of 90 percent. Smaller airports in public land states reverted to the share calculated under the public land state formulas, which allowed a federal share of up to 93.75 percent.

ACI-NA Contact: Liying Gu (202-861-8084)

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This notice has been distributed to the Finance Committee.