[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6595812,"mediaKeyId","3024316-24f2e6c892a55e8052be5cb8c9891b49","parentId",3024316,"title","MDOT official warns aeronautics capital program faces gap as Detroit Metro parking-tax bonds near retirement","audioSeconds",829,"startMs",534000,"endMs",1363000,"viewUrl","/Search/View?dp=1&key=3024316-24f2e6c892a55e8052be5cb8c9891b49&start=534&end=1363","thumbnailUrl","https://assets.pipeline.soar.com/3024316-24f2e6c892a55e8052be5cb8c9891b49/thumbnail_534000.jpg","articleUrl","/articles/6595812/Michigan/MDOT-official-warns-aeronautics-capital-program-faces-gap-as-Detroit-Metro-parking-tax-bonds-near-retirement","mediaUrl","https://secure.pipeline.soar.com/6595812-d24690ca7a9f05c44c083c34c5a0ba35/orig.mp4?Expires=1775897837&Signature=El-Z0ld9MdfnAKDjnBNzL5Ht-nWBrlv7vTfADy8xQIXDdtValNfOF2l8e-X1OBcs2Vd6~0oTt37dlPEPql0SLOXxlGFNwC-jORsMKMw39JPQwExW0ioZuj0BxqdisrCnlyEtK4v7F~k1NCuOW2GTC3Kbq8jLLXTp9SLAik0kbAzOjql6O8d4UNYZlNB~wbni8VjgowBB4SB3RN3rWdeejA6xu8lxYbbgGMGvbounQkYTKzrtutu7hIWi4bb0zO9y70dfuPts62lF1lDugENVF4zHZDYYkosVxem3quYtmCc3TJMngk6~j6EOw~yuN4htgt3T2spGATIqiPPuMP45NA__&Key-Pair-Id=KUT5TJCACFTXG","author","Michigan Legislature","date","2025-04-16T17:01:49.53Z","article","Brian Buds, head of the Michigan Department of Transportation (MDOT) Aeronautics Division, told the House appropriation subcommittee on state and local transportation on Oct. 27, 2025, that the department’s airport capital program depends on a mix of restricted revenues and federal grants, and that a key local revenue stream — an off-site parking tax tied to Detroit Metro Airport — will stop when related bonds retire in about five years.

Buds said the aeronautics fund is supported principally by several restricted revenue streams: a 3-cent-per-gallon aviation fuel excise tax, a package of registration and licensing fees (including aircraft registration), federal block grants routed through MDOT, and an off-site Detroit Metro airport parking tax. “Of the approximately $35,000,000 that’s generated from this airport parking tax, $6,000,000 of that comes to the department to support debt service on those bonds, which are set to retire in about 5 years,” Buds said, adding that roughly half of the department’s share has gone into MDOT’s capital development program for airports.

Why it matters: MDOT and local airports use the state capital outlay appropriation — including state match and pass-through funds for federal grants — to pay for runway and terminal projects, pavement and safety work, and airport planning. Buds told legislators the airport improvement program is the department’s primary vehicle for capital projects and that a substantial portion of those dollars are federal grants administered by MDOT under a Federal Aviation Administration (FAA) block-grant arrangement. If the parking-tax revenue stream sunsets when related bonds retire, Buds said, the aeronautics fund will have “a pretty significant” hole for some programs that rely on that state contribution.

MDOT’s Aeronautics Division provides both capital and operational functions. Buds gave legislators these figures: the state has about 220 licensed public-use airports, roughly 15 airports support scheduled air carrier service, nine Michigan airports participate in the federal Essential Air Service program, and the department estimates aviation supports roughly $22 billion in statewide economic impact. Buds also said MDOT administers a capital improvement program and provides partial state match so local airports need only a 5% local share of typical FAA-funded projects (MDOT covers half of the usual 10% local match, he said).

On restricted revenues, Buds explained the fuel excise tax is 3 cents per gallon and that a partial rebate is available for interstate commercial air carriers. He also noted that aircraft registration fees and other licensing charges produce modest revenue, and that the governor has proposed changes to the aircraft registration fee in the past to bolster grant programs.

Committee members asked for additional documentation and a forward-looking capital plan. Buds told members the packet at the meeting included a five-year capital outlook for primary commercial service airports and that MDOT would email a similar five-year plan for general aviation airports.

Procedural note: Representative Borton moved to adopt the minutes of the March 19 meeting; the motion prevailed by unanimous consent.

Buds’ presentation referenced the department’s role as one of 10 FAA block-grant states that administer federal airport development funds directly and emphasized that most federal airport grants require state and local matching funds and environmental review under federal law.

Looking ahead, Buds recommended that legislators consider the long-term implications of the parking-tax sunset on MDOT’s ability to provide matching funds and to support smaller, rural airports. He said MDOT would provide more details on revenue assumptions and the five-year capital program on request.","mediaType","Video","parentTitle","Appropriations: Subcommittee on State and Local Transportation - 4/16/2025","oneSentenceSummary","Brian Buds, head of the Michigan Department of Transportation Aeronautics Division, told the House appropriation subcommittee that Detroit Metro’s off-site parking tax helps fund state airport capital projects and that debt tied to that tax is set to retire in about five years, threatening a gap in aeronautics funding.","taxTitle","2025-2026 House Legislature MI, Michigan","taxId",77683,"location","Michigan","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6595801,"MDOT expands drone demonstrations and beyond-visual-line-of-sight work for deliveries, inspections and emergency response",291,1709000,2000000,"/Search/View?dp=1&key=3024316-24f2e6c892a55e8052be5cb8c9891b49&start=1709&end=2000","https://assets.pipeline.soar.com/3024316-24f2e6c892a55e8052be5cb8c9891b49/thumbnail_1709000.jpg","/articles/6595801/Michigan/MDOT-expands-drone-demonstrations-and-beyond-visual-line-of-sight-work-for-deliveries-inspections-and-emergency-response","https://secure.pipeline.soar.com/6595801-9785349dc19789ac989d02ced841a509/orig.mp4?Expires=1775897837&Signature=ka9bYp8KJZCbrp8tTx8rSnBeJxQxPc756Mwc2Z1HYJm1IWf1u6mzkxrVduzZwy5HvbcJ5TF-r2~NjtKNv5GVIwTsFMcVgFdHGMkLh9JBR9S6AByiP4GgBzIc0dRtf2mWfINT5hP1N99XcepDw8UVTMSVGhk3b4A0IGT3pf9y3g3Cj~eevn2pjSsgf2Et9wkI4IixzE2xOZ0KvbxMATSDH5BKbS0u9nPWoHfoQjs8Qf4uwyy2dYk5NOra-P8eFX~-Zocx-TWEbky3netyqYIYze0gVMdGJd-8lngVg55KHeRUeE5F6bFDW52erw~9fY5xgV8us8q7XppcOtHeUnqATA__&Key-Pair-Id=KUT5TJCACFTXG","Brian Buds, head of MDOT’s Aeronautics Division, told the appropriation subcommittee that the department is advancing drone (UAS) operations across Michigan through demonstrations, infrastructure pilots and changes to automated weather and communications systems that support more complex operations.

Buds said MDOT’s UAS program began about six years ago and has grown from simple photography to supporting multiple agency missions. MDOT’s work includes: airport inspections and safety surveys; operation of automated weather observation stations (42 statewide) and upgrades to those stations; internal MDOT uses for survey and emergency response; and demonstrations of beyond-visual-line-of-sight (BVLOS) deliveries.

Examples Buds described include partnerships in the Upper Peninsula’s Detour Village area with Interlake Steamship Company and UAS infrastructure providers to demonstrate visual-line-of-sight and BVLOS movement of critical goods from shore to ships at sea, and a Detroit-area project around Michigan Central Station that uses radar and communications infrastructure to provide electronic situational awareness for drone operators. Buds said Michigan currently has about six demonstration sites testing last-mile and critical-parts deliveries, medical-supply runs and other small-scale logistics operations.

Buds noted regulatory limits still require visual line of sight for most operations, and that the federal government permits BVLOS when operators provide certain infrastructure (radar, communications) and obtain FAA approvals. He described the department’s guiding principle as “safe integration” of drones into the aviation system and said MDOT is focusing on safety, security and privacy while seeking the infrastructure needed to unlock broader economic use.

On cost-savings, Buds said an airport inspection program that once relied on three full-time inspectors (with personnel costs he described roughly as $150,000 per person, benefits included) can now use drones that cost roughly $3,000–$5,000 for similar survey tasks, while still requiring boots-on-the-ground for verification. He also cited examples of drone support for emergency response (ice-storm damage assessments) and for bridge inspection and roadside pesticide application conversations with highway engineers.

Representative Robinson, who identified himself as a Part 107 drone pilot, asked Buds to describe future uses; Buds listed bridge inspection, agricultural aerial application, roadside surveying, and expanded emergency-response data collection as priority uses.

Buds also described MDOT’s automated weather observation station upgrades funded by the legislature that modernize older dial-up systems, making data available to pilots and public weather services.

No regulatory actions or new rulemaking were taken at the meeting; Buds described ongoing pilot projects and infrastructure investments intended to support FAA approvals for more expansive drone operations.

","MDOT officials described demonstrations and infrastructure pilots that support beyond-visual-line-of-sight drone operations, said the department uses drones for airport inspections and emergency response, and argued drones can reduce inspection costs and increase worker safety.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6595807,"MDOT says state aircraft operations paused amid HR staffing issues; agency operates four planes",961,1518000,2479000,"/Search/View?dp=1&key=3024316-24f2e6c892a55e8052be5cb8c9891b49&start=1518&end=2479","https://assets.pipeline.soar.com/3024316-24f2e6c892a55e8052be5cb8c9891b49/thumbnail_1518000.jpg","/articles/6595807/Michigan/MDOT-says-state-aircraft-operations-paused-amid-HR-staffing-issues-agency-operates-four-planes","https://secure.pipeline.soar.com/6595807-b018b0488e86e084f4849c4dc57725d6/orig.mp4?Expires=1775897837&Signature=MZS7OxBM~o9w~3pqY3Wo~t5w~ld~KuFL7nGk0AgvDAYA1JDvrlDeidPErHXB8ijZjlm5PwgpV-1hfq-apErrWUTX-qhMn8SPh~uMvprz-MIvDOeqc~IlB~gSXp8FWO-vj1l66LJNC9hgCSQHrOUoT3sRkZZ1NfVgvZ5Wpvks8xd6aIYISyZTbtKvUUxr9kQhPEaNBexDA91zWA88bYoWdpFTzquiN9UFSok6WnKevbZtWEAe2SWYxyjgCXCJ-mMcVipdFICm8BzFVcT2CXhsI4WIctm~2qQqPEjDAw~ZbrotahLGSdbtty7jl7y5oCr6qQJpTUFHvnwaptpQIpq-5Q__&Key-Pair-Id=KUT5TJCACFTXG","Brian Buds, head of MDOT’s Aeronautics Division, told the appropriation subcommittee that MDOT operates a small fleet of aircraft used for state-agency and legislative travel, but that service is temporarily paused due to human-resources related staffing issues.

Buds said MDOT owns four aircraft: three used for passenger transport and one single-engine aircraft used by inspectors. “Within MDOT, we own four aircraft altogether. Three are used for passenger transportation in the service that we mentioned. One is used by our inspectors,” Buds said. He added MDOT has operated the fleet with two pilots dedicated to flight operations and additional agency staff with pilot licenses who occasionally support flights.

MDOT schedules aircraft on a first-come, first-served basis and bills individual agencies when flights are used for state business, Buds said. The department had operated under a legislative boilerplate restriction in the past that was later removed; Buds said the change allows the department to provide airfare alternatives to agencies while charging them for use.

On staffing, Buds told legislators MDOT is working “on a daily basis” through civil service and other HR processes to resolve personnel issues and hopes to resume service in the short term. Representative Wharton asked how many pilots the agency normally has; Buds said MDOT is allocated two pilots dedicated to fleet operations but has benefited from other staff who hold pilot licenses.

The pause affects MDOT’s internal scheduling of aircraft for state business; Buds did not identify any specific flights canceled in the transcript and described the problem as personnel-related rather than mechanical.

Committee members did not take formal action on fleet operations at the meeting but requested more information about capital plans and other program details.","MDOT’s aeronautics chief told legislators the department operates four aircraft but has paused passenger flights because of HR-related staffing problems; MDOT normally schedules aircraft for state business and bills user agencies for flights.","actionData","errors"]

Article not found

MDOT official warns aeronautics capital program faces gap as Detroit Metro parking-tax bonds near retirement

MDOT expands drone demonstrations and beyond-visual-line-of-sight work for deliveries, inspections and emergency response

MDOT says state aircraft operations paused amid HR staffing issues; agency operates four planes