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Agency reports surge in aircraft excise tax revenue; warns potential negative available cash if all projects disburse
Summary
Finance staff said December collections included an unusually large aircraft excise tax payment that boosted revenues; staff also reported encumbrances that, if all projects were paid, would result in a projected negative available cash balance of about $11 million.
Agency finance staff told commissioners the department had an ending cash balance of about $23.8 million as of Dec. 31 but $23.2 million of that is encumbered, leaving roughly $608,000 unencumbered. Staff said estimated statutory revenue remaining for FY25 is about $11.4 million and outstanding reimbursements owed to the agency total about $3.5 million.
Staff highlighted an unusually large aircraft excise tax collection in December — roughly $4.4 million for the month — which contributed to a year-over-year increase of about 66% through December versus the prior year. The three-year average revenue mix (registration fees, excise, fuel tax, license plates) is about $3.3 million higher than the three-year average, largely driven by that single collection, staff said.
Finance staff also presented remaining possible expenditures of about $26.7 million this fiscal year, with approximately $18 million of that attributable to airport construction program grants (pending approval and execution). Staff cautioned that if every potential expenditure were paid out, the expected available cash balance after encumbrances and anticipated income would be about negative $11 million; they emphasized this outcome assumes every pending project and draw occurs and that the department is prioritizing project disbursements.
On PREP funds staff reported $16 million spent, $52 million encumbered and about $30 million remaining as of Dec. 31; staff noted additional PREP draws likely occurred in January. Staff said PREP activity has accelerated draw and payment timelines and that some draws already exceeded the entire prior fiscal year’s airport draws and payments within the first six months of FY25.
