Aeronautics Commission asks Legislature to fund $120 million in one‑time projects, cites $1.2 billion needs over 10 years

The North Dakota Aeronautics Commission urged the Senate Appropriations — Education & Environment Division to support its budget request, outlining routine operations, grant activity and a proposed $120 million one‑time allocation to fund three major airport projects.

At the hearing, Kyle Wanner, director of the North Dakota Aeronautics Commission, described the agency’s scope and financing and said the commission oversees airport infrastructure grants, aircraft registration, dealer and applicator licensing, and collection of aircraft excise and aviation fuel taxes. "The commission administers state aviation laws relevant to aircraft registration, aircraft dealers, air applicators, and the collection of aircraft excise and aviation fuel taxes," Wanner said.

The agency told legislators it administers grants and technical assistance for 89 public‑use airports in the state, 71 of which have paved runways and 18 of which have turf only. Fifty‑four airports are part of the National Plan of Integrated Airport Systems and are eligible for federal funding; the remaining 35 rely primarily on state and local support. Wanner said the commission manages a statewide maintenance contract for 26 automated weather observation systems and operates two airports: the International Peace Garden Airport and the Garrison Dam Recreational Airport.

Why it matters: Wanner and other witnesses said state investment unlocks federal funds. The commission reported leveraging about $5 in federal funds for every $1 of state investment during the prior biennium and identified roughly $1.2 billion in airport infrastructure needs at the 54 federally eligible airports over the next 10 years.

Major budget requests and program details

- One‑time, $120 million request: The Aeronautics Commission included a one‑time $120 million transfer from the Strategic Investment and Improvement Fund in Governor Burgum’s executive recommendation to fund three “generational” projects: a Fargo commercial terminal expansion, reconstruction of Grand Forks’ primary runway, and a new Dickinson passenger terminal. Airport association testimony later named the proposed split as $60 million for Fargo, $30 million for Dickinson and $30 million for Grand Forks.

- Operation Prairie Dog: The agency described the state’s airport infrastructure fund (Operation Prairie Dog), an oil‑revenue contingent program that can provide up to $20 million per biennium for matching or state share. Wanner warned the program is unpredictable because payments depend on oil revenues; he said that uncertainty can limit the state’s ability to secure discretionary federal funds.

- Carryover for International Peace Garden Airport: Wanner asked legislators to carry over previously appropriated funds for a roughly $3.5 million rehabilitation project at the International Peace Garden Airport; the commission said late federal reimbursements caused contractors to delay work and a carryover is required so the project can proceed.

- Ongoing grant and operating plans: The agency reported about $177 million in federal airport aid and roughly $36 million in state airport infrastructure grants supported more than 370 projects in the last biennium. The commission proposed continuing staffing at up to seven full‑time equivalents and said it planned a 7% reduction in operating expenses in the next biennium while maintaining services.

Testimony in support

Multiple airport leaders testified in favor of Senate Bill 2006 and the commission’s budget request. Ryan Riesinger, president of the Airport Association of North Dakota and executive director of the Grand Forks Regional Airport Authority, said the three generational projects are justified and asked the committee to give the bill a “do pass” recommendation. Sean Dobenstein, executive director of the Municipal Airport Authority of the City of Fargo, and Kelly Braun, manager for the Dickinson Municipal Airport, also told the committee that state support is necessary to complete generational projects that local communities cannot fully fund.

Context and federal programs

Wanner highlighted the role of federal programs such as the Airport Improvement Program (AIP) and new programs created by the Bipartisan Infrastructure Law, and noted the FAA Reauthorization Act of 2024 extends authorization through 2028 but that the agency was operating under a continuing resolution for FAA funding at the time of the hearing. He warned that some federal build‑program funds are scheduled to expire in 2026, increasing the importance of state readiness to match or supplement federal grants.

The hearing produced no formal vote. Committee members asked about project prioritization, local cost‑share expectations, and the unpredictability of oil‑revenue contingent funds.