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<br />The source for AIR-21 funds is the <br />Aviation Trust Fund. The Aviation <br />Trust Fund was established in 1970 to <br />provide funding for aviation capital <br />investment programs (aviation <br />development, facilities and equipment, <br />and research and development). The <br />Trust Fund also finances the operation <br />of the FAA. It is funded by user fees, <br />taxes on airline tickets, aviation fuel, <br />and various aircraft parts. <br /> <br />Funds are distributed from the Trust <br />Fund each year by the FAA from <br />appropriations by Congress. A portion <br />of the annual distribution is to primary <br />commercial service airports, based upon <br />enplanement levels. Under AIR-21 the <br />distribution for fiscal year 2000 is a <br />mInImUm of $650,000 to each <br />commercial service airport. In the <br />remaining years of AIR-21, however, <br />the minimum entitlement can increase <br />to $1.0 million annually. This higher <br />funding is dependent upon Congress <br />appropriating the amounts authorized <br />by AIR-21 each year. New to this Bill is <br />the inclusion of general aviation <br />entitlement funds. Each general <br />aviation airport is now eligible to <br />receive up to $150,000 annually in <br />entitlement funds depending upon the <br />airport's activity. Being a general <br />aviation airport, San Marcos will be <br />eligible for the $150,000. <br /> <br />The remaInIng AlP funds are <br />distributed by the FAA based upon the <br />priority of the project for which they <br />have requested Federal assistance <br />through discretionary apportionments. <br /> <br />As previously mentioned, the airport <br />could expect FAA funding assistance in <br />the future. TxDOT, under the block <br /> <br />grant program aids general aviation <br />airports only. Commercial service, or <br />Part 139 funding assistance will likely <br />have to come from FAA. FAA will likely <br />funnel discretionary grants for Part 139 <br />upgrades through the TxDOT block <br />grant program. Other FAA funding <br />assistance such as A TCT staffing would <br />come directly from the FAA. <br /> <br />STATE FUNDING PROGRAM <br /> <br />The State of Texas participates in the <br />federal State Block Grant program. <br />Under the State Block Grant Program, <br />the FAA annually distributes general <br />aviation State apportionment and <br />discretionary funds to TxDOT. The <br />State then distributes grants to state <br />airports. In compliance with TxDOT's <br />legislative mandate that it "apply for, <br />receive, and disburse" Federal funds for <br />general aviation airports, TxDOT acts <br />as the agent ofthe local airport sponsor. <br />Although these grants are distributed <br />by TxDOT, they contain all Federal <br />obligations. <br /> <br />The State of Texas also distributes <br />funding to general aviation airports <br />from the Highway Trust Fund. These <br />funds are appropriated each year by the <br />State Legislature. Once distributed, <br />these grants contain State obligations <br />only. <br /> <br />The establishment of a capital <br />improvement program (CIP) for the <br />State entails first identifYing the need, <br />then establishing a ranking, or priority <br />system. Identifying all State airport <br />project needs allows the TxDOT to <br />establish a biennial program and <br />budget for development costs. The most <br /> <br />6-6 <br />