50-2-4. Report to Governor. On or before the thirty-first day of December, in each year, the commission shall make, to the Governor, a full report of its proceedings for the year ending the thirtieth day of June preceding and may submit with the report any recommendations pertaining to the commission’s affairs as seem to the commission to be desirable.

Commission members and terms (all expire on October 30):

• Eric Odenbach, Chairman, Eureka, term expires 2024
• Kassidy Nelson, Aberdeen, term expires 2025
• Christopher Funk, Volga, term expires 2024
• Rolf Johnson, Mina, term expires 2024
• Bob Huggins, Sioux Falls, term expires 2026
• Gerald Rieber, Watertown, term expires 2025
• John Taylor, Sioux Falls, term expires 2026

Number of airports:

There are currently 69 public use airports in the State, five have commercial services and the
remainder being general aviation.

Number of registered aircraft over the last five years and registration fees collected in the same period:

• The “Registration Fee” is due yearly based on the size and age of an aircraft. The average
  registration fee is less than $35, and a relatively large percentage of aircraft are registered
  for $27.50 per year. However, there were a considerable number of registration fees between
  $100 and $300 which brought the average registration fee to $41.72. For further details,
  please refer to Attachment A.
• The “Tax Payment” is an original registration tax based on the purchase price of the aircraft.
  This is 4% on all aircraft except agriculture related aircraft which is set at 3%. The variation
  that occurs from year to year is caused by the high value of some aircraft. For example, the
  original registration of just one $20,000,000 jet would provide $800,000 in tax.

Aviation fuels used in the last five years and the tax received is listed in Attachment A. Overall, the total amount of revenue was $2,788,446.

Federal grants received per the federal fiscal year (October 1st – September 30th) for the past five years are listed below:

FY2020 – $74,793,244 (Includes CARES Act funds)
FY2021 – $62,530,379 (Includes Covid related grants)
FY2022 – $56,397,913 (Includes Covid related grants and IIJA)
FY2023 – $36,021,091 (Includes BIL grants)
FY2024 – $55,379,475 (Includes BIL grants)

Airport Improvement Program (AIP):

See Attachment B for a list of Airport Improvement Program (AIP) projects the State of South Dakota
received. This list of projects comprises our 2024 AIP grants and shown is a breakdown of costs
based on participation. Normal federally funded AIP project is 90% federal, 5% state, and 5% local.
Typical eligible projects for AIP work include runway construction, runway maintenance, taxiways,
airport aprons, runway lighting, airport fencing, and other infrastructure improvements.

Coronavirus Aid, Relief, and Economic Security Act (CARES):

Signed into law on March 27, 2020, included funds to be awarded as economic relief to airports
affected by the prevention of, preparation for, and response to the COVID-19 pandemic. South
Dakota airports received a total of $36,226,983. These funds had to be expended by 9/30/2024 and
could be used for operational costs, supply needs related to the pandemic and were also used as
the 10% match requirement for the 2020 AIP grant program. The CARES funds deadline has expired
therefore no more funding is able to be spent. SD had $168,188 left in CARES funding that did not
get expended due to not having eligible expenses.

Coronavirus Response and Relief Act (CRRSAA):

Signed into law on December 27, 2020, Non-primary commercial service and general aviation
airports will receive funding to provide economic relief affected by the COVID-19 pandemic. South
Dakota airports received a total of $10,243,364. The FAA is encouraging all airports to spend
these funds as quickly as possible. These funds are used for operational costs, along with any
supply needs related to the pandemic and are funded with no local cost share requirement. The
expenditure dates vary for each grant awarded and are based upon each individual airport’s
funding agreement. The last funding agreement must be expended by 6/30/2025. SD has
$438,580 left in CRRSAA funds as of 8/29/2024, which includes 10 grants. Staff is working with
airports ensuring they are aware of the deadline for funds to be expended.

American Rescue Plan Act (ARPA):

Signed into law on March 11, 2021, included funds to be awarded as economic assistance to airports
to prevent, prepare for, and respond to the pandemic. South Dakota airports were allocated
$16,466,090. These funds must be expended by 12/29/2025 and are used for operational costs,
along with any supply needs related to the pandemic and are funded with no local cost share
requirement. SD has $2,299,001 as of 8/29/2024 left in ARPA funds which includes 18 grants. Staff
is working with airports ensuring they are aware of the deadline for funds to be expended.

Infrastructure Investment and Jobs Act (IIJA):

Signed into law on November 15, 2021, the Infrastructure Investment and Jobs Act (IIJA) also known
as the Bipartisan Infrastructure Law (BIL) provides $550 billion over fiscal years 2022 through 2026
in new Federal investment in infrastructure, including in roads, bridges, and mass transit, water
infrastructure, resilience, and broadband. South Dakota airports were allocated $16,530,747 in 2024.
The expenditure dates vary for each grant awarded and are based upon each individual airport’s
funding agreement. The last funding agreement must be expended by 9/30/2030.

Airport inspections:

Non-commercial airports are inspected by SDDOT each year, with further compliance inspections
conducted as needed. The commercial service airports are inspected by the FAA inspectors.

South Dakota Airport Conference:

SDDOT hosts a yearly “Airports Conference” in the spring to educate and communicate with airport
managers, airport sponsors, finance officers, engineering consultants representing the sponsors in
construction projects, and FAA personnel. The conference for 2024 was held in Deadwood, SD at
The Lodge April 9-11. The conference provided a great opportunity to exchange information for
current and future aviation issues. The conference for 2025 will be held again in Deadwood, SD at
The Lodge and will be April 1-3, 2025.

Aeronautics Fund Balance: Attachments C and D

The State aeronautics fund receives its revenues from those funds listed above (aircraft registration
fees and aircraft fuel taxes) and is used to support airport grants, ongoing aviation related services,
and special projects. The funds deposited into the Aeronautics fund are allocated into two distinct
uses, one for state aeronautics use and the other for individual airport sponsor use. The airport
sponsor allocations are based on set allocations as established by the Aeronautics Commission and
then are prorated according to aircraft fuel sold and collected at each eligible airport. Thus, each
airport receives funding based on aircraft fuel sales derived from their individual airport which can
be used for general aviation purposes.

South Dakota Airport Terminal Program (SDATP):

The SDDOT launched the South Dakota Airport Terminal Program (SDATP) following the successful
passage of Senate Bill 144 in the 2024 legislative session. This bill allocated $10 million in funding to
support airport terminal projects across the state, representing a one-time investment in enhancing
South Dakota’s aviation infrastructure. The SDATP funds are unique, as they are one-time
appropriations distinct from the traditional Aeronautics Commission policies. SDATP funds are
designated strictly for construction reimbursement and exclude costs related to project planning,
design, and administration. Local community effort and funding were critical components for
consideration. Eligible projects for SDATP funding had to meet stringent criteria:

• Projects must be part of the Airport Capital Improvement Plan or included in the National Plan
  of Integrated Airports submitted yearly to the state.
• Projects must receive federal funding through at least one year of AIP federal entitlements
  and the Bipartisan Infrastructure Law (BIL) Airport Infrastructure Grant allocation. This
  includes having submitted an application, awarded a grant, or committed to applying in the
  next federal funding round for federal discretionary funds.
• Projects must not have been completed by the application deadline and must be scheduled to
  receive federal discretionary grants by Monday, Sept. 30, 2025, to retain eligibility.
  
  The following is a list of the airport facilities that were awarded SDATP funds for terminal projects: Airport Facility and SDATP Allocation
  Aberdeen $1,200,000
  Spearfish $1,319,073
  Hot Springs $27,000
  Sturgis $210,000
  Rapid City $3,047,126
  Tea $735,000
  Sioux Falls $2,561,801
  Watertown $900,000