State of State Aviation 2017 State of State Aviation

Tennessee Aeronautics Commission Larry Mullins, Chair (Morristown) Butch West, Vice Chair (Columbia) Fred Culbreath, Member (Hendersonville) Kirk Huddleston, Member (Knoxville) Nisha Powers, Member (Memphis)

Funding Sources Funding Update Federal (AIP) Fund Non-Primary Entitlements (NPE) State Apportionment Discretionary State Transportation Equity Fund 4.5% Fuel Sales Tax 2015 Legislative Action changed TEF funding Aviation Fuel Tax remains at 4.5% Single payer will be capped at $10.5M Phased in over 4 years FY 2017 cap $17.75M FY 2018 cap $14.125M

Tennessee Equity Fund FY 2011 $39.0M $52.3M FY 2012 $39.0M $48.9M Budget Collections FY 2011 $39.0M $52.3M FY 2012 $39.0M $48.9M FY 2013 $44.4M $47.0M FY 2014 $50.4M $48.6M FY 2015 $50.4M $35.7M FY 2016 $49.1M $23.9M FY 2017 $38.1M $24M(est)

Tennessee Equity Fund Budget $24 Million Supports Three Components: Statewide Programs Air Carrier Airports General Aviation Airports

Tennessee Equity Fund Budget Air Carrier Airports $8M Statewide Programs $2M Grant Management Operations, AWOS, Education Outreach General Aviation Airports $8M Projects, Airport Maintenance Grounds Maintenance Equipment

TN TEF Fund Legislation New amendment being considered in Legislature Cap passenger carrying airlines at $3M No near term fiscal impact at current fuel prices However ……..!!!!!????

State of the State Aviation Task Force Update Fifteen members – ECD Chair, State elected officials, TDOT Business reps, Local officials, TAA reps, TAACA reps, F&A Reviewed airport needs based on PCI study, ACIP Reviewed competitor state funding Analyzed current funding profiles and processes Identified potential funding opportunities Reported to Legislature – March 2016 Created an Aviation related Economic Development Fund Now has proposed funding in Gov’s budget 2016 State of the State Aviation

Personnel Changes For 2017 Assistant Director - Michelle Frazier Retirements: Brian Caldwell; Tom Burgess PE Transfer: Lanette Phillips PE; Paige Harris PE Promotion: Trans Proj Spec Sr Bill Burney PE Project Monitors: Jessica Crabtree; Tony Oliva Project Teams: Project Managers/Monitors Current vacancies: Chief Engineer; Program Monitor Supervisor; Project Managers; Program Monitor Please meet the staff – good opportunity for communication at this conference

Personnel Challenge For Us All Increase visibility of aviation as a career Pilot shortages Airport Management Opportunities Aviation Management Professional Organizations Consulting Engineering Firms You can be front-line recruiters Develop some local outreach and advertising approaches

Personnel Challenge For Us All Focus on youth, but don’t ignore those with some background and experience Our TN Airports network represents a lot of jobs Recruit early – Bert Loupe is example Recruit later – Emily Haun, Heather Bay Can lead to fulfilling careers

FY 17 Projects Over 175 Grants and Amendments almost $20M this FY Focus on Pavements almost $10M this FY Maintenance Contracts 68

Continuing Update 2017 Airport Maintenance Program State shares 50/50 for eligible expenses Total Program -- Up to $1.124M Contract requires routine invoicing Significant funds “left on table” FY 14 - $416,000 FY 15 - $360,000 FY 16 - $306,000

Major AWOS Program Upgrade State-wide – Continue upgrade of AWOS Three year program – $2.5M 22 completed – 6 more by end May Complete end of 2018 Lisa Reaney – Project Manager

Continuing Update 2017 Federal Funding – approx. $13M annually Non-Primary Entitlement Program Funds Provided For Airport Safety, Maintenance, Standards, Modernization Prioritization for use – re-focus from use of State funds Project Managers will help/stimulate project activity CASH FLOW Issue!!!! We must continue our drawdown pace

Summary Even Greater Focus on execution of projects CASH FLOW is Critical . Everyone plays a part – Airport Sponsors, Consultants, Contractors, Entire TAD Staff Great Activity Continues in 2017 Improvements and Benefits To TN Airports – may not be as major as in past years Funding challenges require innovation Result – Maintain our Network as one of the Nation’s finest