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MINUTES OF THE

Local Airport Funding Task Force

Tuesday, October 20, 1998 . 4:00 p.m. . Room 416 State Capitol



Members Present:
    Sen. Lyle Hillyard, Senate Chair
    Rep. Bill Hickman, House Chair
    Sen. Alarik Myrin
    Rep. Judy Ann Buffmire
    Rep. Don E. Bush
    Rep. James R. Gowans
    Mr. Robert Froelich
    Mr. Jerry Peterson
    Mr. Danny Quillen
    Mr. Jeremy Taylor
    Mr. Russell Widmar
    Mr. Leonard Wojcik

Members Excused:
    Sen. Ed Mayne
    Rep. Glenn Way
    Mr. Bob Dalla    

Staff Present:
    Ms. Connie Steffen,
     Research Analyst
    Mr. Keith Woodwell,
     Associate General Counsel
    Ms. Angela D. Kelley,
     Legislative Secretary

Note:    A list of others present and handouts distributed are on file in the Office of Legislative Research and General Counsel.

1.     Committee Business - Chair Hickman called the meeting to order at 4:02 p.m.

    MOTION: Rep. Bush moved to approve the minutes of the July 7, 1998 meeting. The motion passed unanimously with Rep. Buffmire absent for the vote.

2.    Funding Alternatives - Chair Hillyard reviewed the memorandum regarding airport funding alternatives that was mailed to the committee prior to the meeting.

    Mr. Widmar distributed a handout outlining Salt Lake City's position on funding alternatives. Salt Lake City would not oppose a four cent tax increase on gasoline used by general aviation aircraft but would oppose a tax increase on fuel used by commercial aircraft operations.

    Mr. Wojcik suggested that: 1) all tax on aviation fuel be directed to the state; 2) the tax on some or all commercial aircraft be increased by one cent; 3) counties be allowed to levy a sales tax dedicated for airports; 4) the property tax on aircraft be lowered; and 5) money be appropriated from the General Fund.

    Mr. Robert P. Barrett, Department of Transportation, Aeronautical Operations , said that $675,000 is needed to match the federal discretionary funds that are anticipated for the coming year and $400,000 is needed for airports that are not eligible to receive federal funds. He said that federal money does not pay for pavement maintenance at any of the airports in Utah. He noted that the runways need to be reconstructed approximately every 20 years if they have proper

maintenance; however, if they do not have the proper maintenance, they will need to be reconstructed every 12 to 15 years. He also noted that in order to get the airports paved, there would have to be approximately 10 pavement sections completed per year and, currently, only two pavement sections are completed per year. He said the $.04 per gallon fuel tax increase on the non-scheduled carriers would be appropriate.

    Mr. Widmar suggested that the state apply for participation in the federal block grant program to be able to use more money for maintenance.

    Mr. Quillen said that Delta Airlines pays $17.5 million more a year in Utah than in other states because of the $.14 per gallon difference in the cost of jet fuel. He said that he agrees that general aviation needs money but added that it is unfair to raise fuel prices any more on the scheduled carriers.

    Mr. Norm Robinson, Tooele County/Wendover Airport, commented on the need for additional funding.

    Mr. Brent Gardner, Utah Association of Counties, expressed concern with reducing the property tax on aircraft.

3.    Other Business -

4.    Adjourn -

    MOTION: Rep. Bush moved to adjourn the meeting at 6:05 p.m. The motion passed unanimously.

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