1. January 2016 AIRPORT FUNDING OVERVIEW January 2016

2. 2001 FAA AIP Funding 2 $11,237,578 $24,861,502 FAA Block Grant Funding 2015 NPE State Apportionment $10,000,000 Discretionary Average 2001-2012 $25,234,547 $19,652,075 NPE Discretionary $0 FAA Block Grant Funding Funds Remaining State Apportionment

3. January 2016  FAA Report to Congress - Evaluating the Formulation of the National Plan of Integrated Airport Systems (NPIAS): “The NPE has come at the expense of the state apportionment, which had been used to fund high priority projects within a state. Since the NPE is calculated first out of the General Aviation Apportionment, the state apportionment has dropped each year.” Four options are offered in the report. Option b, “The NPE could be eliminated, replaced by state entitlement funding.”  Reauthorization legislation.  Reinstatement of Discretionary Funding for Texas’ General Aviation and Reliever Airports. FAA AIP Funding 3  Readily available funding for airport capital improvement projects has decreased by 25% between 2001 and 2015.  As a matter of law, NPE funding can be banked by individual airports for up to four years, resulting in large banked balances of entitlement funding for Texas airports. Our office is, and has been, aggressively pursuing release of NPE funds that are not needed for an immediate project.  Texas received no discretionary funding for our general aviation and reliever airports for FY 2013, FY 2014, and FY 2015, resulting in an additional loss of approximately $ 30,000,000 in anticipated FAA funding. Solutions: Impacts:

4. January 2016 FAA AIP Funding  What are funding sources for airport projects? – Funding is provided from FAA Airport Improvement Program Funds (AIP). Additional funding is provided from TxDOT’s Fund 6.  When are funds received? – The federal fiscal years begin on October 1 st. FAA State Apportionment and Non-Primary Entitlement (NPE) funds are usually received during the following May or June. Texas Government Fiscal Year begins on September 1st. Funds become available at the start of the Fiscal Year.  What is the project selection process and prioritization? – TxDOT uses the FAA Priority System in evaluating projects for grants.  Is a heavier rating given to airports in or around Class B airspace? – The same rating system is used for all general aviation and reliever airports. However, the level of airport activity always plays a significant role in project selection. 4

5. January 2016 FAA AIP Funding  When do funds become a grant for a specific project? – Following approval by the Texas Transportation Commission.  Is the FAA withholding Funds due to unused NPE funds? – Refer to FAA for response.  Is the current CIP fully funded? – The general answer to this question is, yes. The CIP is slightly over programmed in case one or more projects do not become ready for grant during the fiscal year.  Copy of ATCT members airports CIP. – Copies of the CIP can be found at www.txdot.gov. 5