Oklahoma aeronautics agency reports strong revenues, heavy PREP spending and potential short-term cash gap

The Oklahoma Aerospace and Aeronautics Commission heard on Jan. 22 that the agency recorded a large December revenue collection but is putting most of that money into projects, leaving a narrow unencumbered balance.

Chris, presenting the department's financial report, said the agency had an ending cash balance of about $23,800,000 as of Dec. 31, with encumbrances totaling $23,200,000, “which leaves us with an unencumbered cash balance of $608,000.” He told commissioners estimated statutory revenue remaining for fiscal 2025 is $11,400,000 and that outstanding reimbursements owed to the agency total “around 3 and a half million dollars.”

Why it matters: the agency is managing a surge of project spending tied to the Progressing Rural Economic Prosperity (PREP) program and airport construction grants. Chris said the total amount of remaining expenditures that could be incurred this fiscal year is about $26,700,000, “with the bulk of that about $18,000,000 being airport construction program grants.” He warned: “If all of that happened, it would leave us with an expected available cash balance after encumbrances and expected income of negative 11,000,000.”

The spike in December revenue came mainly from aircraft excise tax collections. Chris told the commission that statutory revenue collected in December was $4,400,000 — “nearly all of that of which was aircraft excise tax” — and that total statutory revenue collected through December this fiscal year is $7.5 million, up from $4.5 million at the same point last year.

The PREP program has been a major driver of spending. Chris reported PREP funds as of Dec. 31: “we have spent about 16,000,000. We’ve got 52,000,000 of that encumbered and then about, 30,000,000 remaining left to spend.” He added staff had spent another “probably another 1.5 to 2,000,000” in January.

Commission staff and construction managers said the PREP funds are being deployed quickly into hangars, runway and taxiway work and other airport infrastructure. Katie, who presented the 2024 construction summary, summarized the agency’s outlays for last year: “our department last year, we paid 8,300,000.0 and the FAA granted us 12,700,000.0 for a total of 25,500,000.0 invested in Oklahoma.” She noted many rural municipalities matched state and federal funds and remain actively involved in project oversight.

What’s next: Commissioners were told the negative $11 million figure is a theoretical result if every encumbrance and projected expenditure fully pays out during the current fiscal year; the finance presenter said staff do not expect the full payout to occur immediately. Staff plans continued monthly reporting and emphasized the agency is prioritizing payments to move PREP and other construction projects forward.

Clarifying details: Chris reported outstanding reimbursements of about $3.5 million; estimated remaining statutory revenue for FY25 of $11.4 million; remaining potential expenditures of $26.7 million; PREP: $16 million spent, $52 million encumbered, $30 million left to spend. Katie reported state payments of $8.3 million and FAA grants of $12.7 million for 2024 construction projects.

The commission did not take any formal vote on the financial report; staff answered commissioners’ questions and continued to other agenda items.