Support South Dakota Airports – Senate Bill 132

Appropriates $30,000,000 from the general fund, to the South Dakota Aeronautics Commission, for grants to support the improvement, expansion, and future capacity demands of terminals at public airports in this state of South Dakota.

Why?

Passenger Growth

In 2024, South Dakota set a new record with over 1.193 million passengers boarding commercial aircraft—a 13.7% increase from the previous year.

Airport	2024	2023	Increase from 2023	Percent of Enplaned Passengers 2024
Sioux Falls	712,011	651,357	9.3%	60%
Rapid City	427,325	344,922	23.9%	36%
Aberdeen	24,701	21,893	12.8%	2%
Pierre	14,771	15,871	-6.9%	1%
Watertown	14,525	15,429	-5.8%	1%

Economic Impact

Sioux Falls and Rapid City Airports contribute over $1 billion in economic impact to the state annually. Aviation in South Dakota creates and sustains 8,040 jobs.

Sources:
Airports Council International
Rapid City Economic Impact Study

Long-Overdue Improvements

Sioux Falls Airport (FSD) and Rapid City Regional Airport (RAP) account for 96% of all commercial air travel. Both airports are expanding to address long-overdue infrastructure needs, ensuring South Dakota’s airports can meet demand and ensure safe and efficient operations.

Rapid City Terminal Expansion Project broke ground in October 2023. The project is expected to total over $220 million. This expansion addresses multiple areas included luggage screening, ticket counters, additional gates and more.

Sioux Falls is in the planning stage of their terminal expansion project. If completed the project would add four more gates and expand waiting areas.

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Funding Gaps

Inflation

Federal funding for airports has been approximately $3.23 billion nationwide for the past 20 years, but the impact of inflation has diminished the efficacy of this funding. In 2024, it rose to $4 billion, but rising costs outpaced the increase.

Ineligible Areas

In a terminal expansion project many portions of the construction are ineligible for federal funding. This includes essential non-public areas used for operations.

Limited Funding

Airport Federal Funding 2005-2023

In the Great Lakes Region, South Dakota receives the lowest overall amount of federal funding.

• South Dakota: $654.7 million
• North Dakota: $964.4 million
• Minnesota: $1,628.6 million
• Wisconsin: $1,342.6 million
• Michigan: $2,314.2 million
• Ohio: $1,692 million
• Illinois: $3,762.1 million

State Limitations

State involvement comes with specific limitations established by the Aeronautics Commission due to constrained funding resources. Notably, revenue-generating systems like fuel facilities and hangars are ineligible for state funding. Additionally, for airport terminal projects, the state’s financial contribution is capped at $200,000 per project, in accordance with current State Aeronautics Commission policy.

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