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Spaceport Authority briefed committee on revenue dip, longer leases and orbital‑reentry plans; LFC budget adopted
Summary
The Spaceport Authority reported an anticipated revenue decline tied to Virgin Galactic’s operational pause, described progress on long leases and FAA licensing for orbital reentry, and asked for staff additions; the committee adopted the LFC recommendation.
The Spaceport Authority told the Appropriations & Finance Committee that its FY26 revenue forecast reflects a decline primarily tied to a temporary pause in Virgin Galactic operations, and that agency work is underway to sign long‑term leases, pursue orbital reentry licensing and expand site readiness for new customers.
DFA and LFC analysts said the executive recommended slightly more general fund than the LFC (roughly an $82,800 difference) and both agencies expect a multi‑hundred‑thousand‑dollar drop in other revenues largely driven by temporary reductions in user fees from Virgin Galactic.
Spaceport director Mariano McLaughlin (presenting) outlined the national context for commercial space activity and said the field is expanding: other states are investing heavily (Texas has created a multi‑hundred‑million‑dollar space commission, the director noted), and the FAA and the Department of Defense are increasing attention on launch sites. He said Virgin Galactic paused operations while it reworks two new spaceships, which reduced the number of launches and user‑fee revenue for Spaceport America. Virgin Galactic made a related commitment to build a roughly $30 million launch hangar at the spaceport; McLaughlin said that hangar is private investment, not taxpayer‑funded, and lease fees are expected to contribute revenue later in the year.
McLaughlin said the Spaceport is negotiating a new 30–40 year lease with the State Land Office to provide long‑term certainty for customers (state statute now allows 40‑year economic leases). He also said the authority has submitted an FAA application for an orbital reentry license (to accept capsules and winged vehicles returning to the site), with environmental follow‑ups underway; the license application was submitted in September and the authority expects questions from FAA and additional environmental evaluation before an approval later this year or early next year.
Committee members asked about launch counts and jobs. McLaughlin said calendar‑year 2024 had two Virgin Galactic suborbital flights and two launches from other suborbital customers; he also cited a 2022 economic impact study with an estimate of about 811 jobs tied to the spaceport and $60 million in local economic activity. He said Virgin Galactic’s long‑term goal is about 125 launches per year once new vehicles are in regular operation.
Lawmakers also raised infrastructure concerns. McLaughlin said the southern access road to the spaceport has recurring water and pavement problems and that a transfer of the road to the state Department of Transportation has been slow; no firm dollar figure for repairs was available in the hearing.
The committee adopted the LFC recommendation for the Spaceport Authority budget by voice vote; Vice Chair Sarnana moved adoption and Representative Faka seconded, and no objections were recorded.
