The North Dakota Aeronautics Commission (NDAC) is a state agency that runs on a biennial budget that is approved by the state’s elected leaders each legislative session. We recently closed the books on the previous biennium which ran from July 1, 2019 to June 30, 2021; I am excited to provide you with a breakdown of our revenue and expenditures over that time period. My goal is that this showcases transparency and our commitment to providing the public with an efficient operation that delivers a large amount of agency revenue directly back to support and improve our state’s aviation community.
A breakdown of the NDAC’s Biennial Revenue:
|
Aircraft Registrations
|
$337,470
|
3%
|
|
Aircraft Excise Tax
|
$6,484,942
|
58%
|
|
Federal Funds
|
$134,262
|
1%
|
|
Aviation Fuel Tax
|
$3,062,385
|
27%
|
|
General Funds
|
$500,000
|
5%
|
|
Carry-Over Special Funds
|
$537,398
|
5%
|
|
Other Revenue Sources
|
$155,060
|
1%
|
|
TOTAL
|
$11,211,517
|
100%
|
This past biennium we received an unexpected increase in aircraft excise tax revenue, as more individuals and companies purchased aircraft than originally forecasted. Aviation fuel tax revenue, however, was below forecast due to less fuel being purchased, particularly by the airlines during the beginning months of the COVID-19 pandemic. The good news is that the overall revenue received by the agency resulted in a 39% increase over what was forecasted to be received at the start of the biennium. All additional funds that are received above and beyond the forecast results in a healthy special fund balance and the ability for the agency to provide additional airport infrastructure grant allocations in future years.
A breakdown of the NDAC’s Biennial Expenditures:
|
Airport Grants
|
$8,748,816
|
81%
|
|
Aviation Education Grants
|
$192,964
|
2%
|
|
Salaries & Benefits
|
$1,278,911
|
11%
|
|
Operating Expenses
|
$548,946
|
5%
|
|
Statewide Planning Projects
|
67,601
|
1%
|
|
TOTAL
|
$10,837,238
|
100%
|
As you can see from the biennial expenditure breakdown, 81% of our agency’s expenditures went back to our local communities in the form of airport infrastructure grants. These funds are provided each year to assist our 89 public-use airports with an assortment of high priority rehabilitation or expansion projects. Over this time period, these funds also complimented and leveraged Federal Aviation Administration Airport Improvement Funds (AIP) for North Dakota airport projects in approximately $150 million dollars.
Our agency’s operating expenses were also significantly lower than expected, due to cost-saving measures and reductions in spending that took place as a result of the COVID-19 pandemic. The operating expenditures also include the costs for all of the agency’s programs that are offered to airports and the public, such as our Automated Weather Observing System(AWOS) maintenance program, windsock program, passport program, and many others which you can discover on our website.
I am also pleased to announce that a recent audit of the previous biennium concluded with no informal or informal findings or recommendations. Your Aeronautics Commissioners and staff continually work hard on a daily basis to ensure that any funds that the agency receives are being put to its best use, as we continue our mission of maintaining and growing North Dakota’s airport infrastructure and aviation industry.
Wishing you smooth flying,
Kyle Wanner, Director
North Dakota Aeronautics Commission
701-328-9650 | kcwanner@nd.gov
