Business and the Economy
State Announces Funding for Small Airports
Gov. Steve Beshear Tuesday announced an initiative to help Kentucky’s small airports by increasing the state’s contribution toward a required local match on federal grant funds. Approximately $425,000 in additional funds from the state will be used to offset an increased cost-sharing requirement for Federal Aviation Administration entitlement grant funding at Kentucky’s 46 general aviation airports, according to a press release from Beshear's office.
In the past, the FAA grants required a 5 percent match, of which the Kentucky Transportation Cabinet’s Department of Aviation provided 2.5 percent and the local airports contributed 2.5 percent. Under the recently passed FAA authorization, however, matching funds totaling 10 percent are required. The governor announced that KYTC will increase its contribution to 7.5 percent so that the local airports’ match remains at 2.5 percent.
“This is great news for small airports, which are important for business and economic development in communities across Kentucky,” Beshear said in a statement issued by his office. “We support general aviation, and we’re happy these airports will not have to absorb these additional costs.”
Each general aviation airport will continue to receive $150,000 annually in non-primary entitlement grant funds. The grants can be used for certain airport projects, such as safety improvements, infrastructure, or airport expansion.
The local airports are required to share costs by contributing matching funds totaling 10 percent –with 7.5 percent coming from the Department of Aviation through separate grant agreements.
The grant cost sharing percentage applies to the grants issued in fiscal years 2012 and 2013.