Why It Matters
The South Dakota Aeronautics Commission is adjusting spending policies to address a surplus in state aviation funding, ensuring capital flows to major infrastructure projects rather than accumulating in reserve accounts.
What Happened
The commission approved two policy changes on Thursday to accelerate expenditures from the state Aeronautics Fund. One modification raises the cap on assistance for smaller airport projects. The other change replaces existing maximum assistance limits with a formula tied to terminal project size, making more funds available for ongoing expansions at Sioux Falls and Rapid City airports.
Transportation Secretary Joel Jundt noted that revenues are currently outpacing expenditures by roughly 2-to-1. Chairman Robert Huggins emphasized the need to utilize the accumulated capital, stating, “We have this money. Let’s spend it on aviation.”
By the Numbers
nearly $20 million — record balance of the Aeronautics Fund
nearly $30 million — projected fund balance by fiscal year 2032 without policy changes
more than $100 million — expected cost for each of the Sioux Falls and Rapid City projects
$5.8 million — revenue from aircraft sales in fiscal year 2025
about $3.3 million — revenue from aircraft sales in fiscal year 2026
about $1 million annually — recent annual revenue from fuel taxes
2-to-1 — ratio of revenues to expenditures
Zoom Out
The Aeronautics Fund draws revenue from aircraft fuel taxes, aircraft registration fees, and taxes on aircraft sales. Airport projects in the state typically rely on a combination of federal, state, and local funding sources. The policy adjustments do not require legislative approval.
What’s Next
The commission will implement the new formula-based assistance structure for terminal expansions at Sioux Falls and Rapid City airports. These changes aim to prevent the fund balance from reaching nearly $30 million by fiscal year 2032.