Aeronautics budget hearing highlights $120 million proposal for three generational airport projects; Peace Garden carryover approved

Grant Gater of the Legislative Council and Kyle Wanner, director of the North Dakota Aeronautics Commission, briefed the Senate Appropriations — Education and Environment Division on aeronautics budget proposals that include ongoing grant authority, an Airport Infrastructure Fund line and a proposed $120 million one‑time package for three large airport projects.

Gater said the purple sheet summarizes the Armstrong executive recommendation and the green sheet reflects the Burgum recommendation; the main practical differences were a change to the salary increase and whether one‑time Airport Infrastructure Fund dollars are bonded or drawn from the Strategic Investment and Improvement Fund. He noted carryover authority is commonly included when revenue timing and project schedules do not align with the biennium.

Wanner described agency operations and the grants line item, noting seven full‑time equivalents and roughly $3.3 million in operating expenses. He told the committee that the grants line includes $475,000 from the general fund, the Aeronautics Commission special fund and an anticipated $20 million from the Airport Infrastructure Fund; the proposed $120 million package would be one‑time funding for three generational projects. “We have shovel ready projects,” Wanner said, and urged that carryover authority be included so awarded grants can be reimbursed when federal and local matches arrive.

Wanner and members described the three projects in the $120 million proposal and typical federal matches:

- Fargo: estimated terminal expansion cost about $156 million; federal funding was estimated at roughly $60 million to $80 million; Fargo is also planning a $40 million to $45 million parking garage and has sought debt through the Bank of North Dakota.

- Grand Forks: primary runway rehabilitation estimated about $75 million total, with an estimated federal share in the $30 million to $37 million range. Officials said the airport has done planning and land purchases and that the runway project has been on the horizon for years.

- Dickinson: a new terminal on a green site was estimated at roughly $48 million, with a potential federal share of $10 million to $15 million; testimony noted Dickinson currently cannot accommodate larger regional aircraft and needs a modern terminal to preserve airline service.

Wanner told the committee that some federal funding opportunities from the Bipartisan Infrastructure Law and the Airport Terminal Program are time‑limited and run through 2026, creating urgency for projects that are already planned and environmentally cleared. He also described the agency’s preference that the Legislature provide carryover authority for projects such as the International Peace Garden Airport, where federal grants arrived after the ongoing biennium and construction is scheduled for the upcoming summer.

Committee members asked whether the $120 million must be provided in full and whether projects can be prioritized or phased; Wanner replied that each project is justified and that additional state funding improves competitiveness for discretionary federal grants. The committee approved, by consensus, including carryover authority for the International Peace Garden Airport funds in the current budget language. No final appropriation was adopted for the $120 million package; members said the request will be considered within the larger budget picture.