Senate Transportation hears FY27 aviation budget: $12.98M package, runway and safety projects, and update on Caledonia sale

Evan Robinson, the aviation program manager, presented the AgencyofTransportationaviation budget for fiscal year 2027 to the Senate Transportation Committee and walked members through individual airport projects, safety priorities and near-term funding needs.

Robinson said the FY27 package includes $6,710,146 in state funds and $6,270,734 in federal funding for a total of $12,980,880 in proposed aviation expenditures. "Safety being the number one priority," he told the committee, and listed navigation easements, obstruction studies and targeted capital work among the top items.

Why it matters: the presentation ties state matching dollars and T-fund allocations to FAA projects across the stateowned airports and outlines several multi-year efforts that affect local operations, business development opportunities and federally funded reconstruction timelines.

Major highlights and projects

- Instrument approach at Northeast Kingdom (Coventry): Robinson said NEK lacks a full instrument approach on one runway direction, which can keep larger or insurance-sensitive aircraft from using the airport and limit business development. He noted the FAA once funded such approaches but the state now must fund outsourced development, so the T fund carries the allocation.

- Rutland Southern Regional: As a commercial service airport on Essential Air Service, Rutland has a contractual three-flights-per-day Cape Air service to Boston. Robinson said the airport needs a replacement aircraft rescue and firefighting (ARFF) truck (the current unit is about 20 years old) and ongoing maintenance of an EMAS safety system.

- Terminal apron rehabilitation: The department received a large discretionary FAA grant to rehab a terminal apron (aircraft parking surface) with construction scheduled to begin late in FY27.

- Franklin County (Highgate): Robinson described completion of a runway widening and extension, newly installed water and sewer service that supports hangars and terminal access, and a proposed perimeter fence to reduce wildlife hazards on the runway.

- Middlebury: The department seeks a competitive FAA American Terminal Program grant (Robinson cited a target of roughly $2 million) to build a modest terminal building and restore fuel service; Robinson said restoring fuel service has federal eligibility.

- Burlington International: A $500,000 state pass-through was proposed to match FAA-funded capital projects; Robinson said the airport must specify which FAA-approved project will use the funds.

- Runway reconstruction and fuel-farm upgrades: Robinson said major reconstruction projects require obstruction mitigation and navigation easements in advance; one large reconstruction project was deferred by the FAA to 2029. He also described a multi-year plan to replace aging fuel farm tanks, some more than 30 years old.

Questions and follow-ups

Committee members pressed on operating costs versus revenues at individual airports, law-enforcement costs tied to commercial flights, whether the $500,000 pass-through exceeds jet fuel tax revenue (Robinson said AOT and the Tax Department are investigating historical data), and public engagement on development projects (quarterly community updates and an airport liaison for Middlebury).

On a politically sensitive point, a member asked whether denying federal agencies use of airports for detainee transport would jeopardize FAA grants. Robinson said he was not aware of implications and had not investigated the issue but offered to follow up with the committee.

Caledonia sale update

Robinson said the proposed sale of the Caledonia airport remains entangled with FAA processes and that the department is asking the T bill for an extension of a May 8 deadline; he said they hope to complete the transaction within 12 months but cautioned the timeline is uncertain.

Robinson also described a statewide airport policy modernization effort to replace outdated rule sets (some from 1969) and noted ongoing pavement-condition work, the civil air patrol grant for search and emergency response, and several posted and planned construction projects.

The committee did not take formal votes on the FY27 aviation budget during the presentation; staff and legislators asked for follow-up data on airport operating revenues and fuel tax collections.