TITLE: CONCERNING INTRASTATE COMMERCIAL AIR SERVICE IN COLORADO, AND, MAKING APPROPRIATIONS THEREFOR.

The provisions of this bill would establish the Colorado Commercial Air Service Assistance grant program in the Aeronautics Division, Colorado Department of Transportation. The bill would allow a qualified airport or consortium of qualified airports to apply to the Colorado Aeronautical Board for grant moneys to fund capital construction projects that will improve intrastate commercial air service in Colorado. The bill would allow the board to appoint an advisory committee, set criteria for grant applications, and would require it to compile and submit an annual report to the Capital Development Committee and Joint Budget Committee identifying certain information about grants awarded by the board by no later than January 1, 1999. This bill would become effective upon signature of the Governor.

STATE FISCAL IMPACT SUMMARY	FY 1998/99	FY 1999/2000
State Revenues General Fund Other Fund
State Expenditures General Fund - Transfer Department of Transportation Cash Fund - Available for Grants Department of Law - Cash Fund Exempt*	$10,000,000 $10,000,000 $2,880	$960
FTE Position Change	None	None
Local Government Impact — Increase in revenue from grants submitted and approved.

*The expenditure of the Department of Law is included in the current appropriation to the Division of Aeronautics.

The bill would transfer $10,000,000 from the General Fund to the Capital Construction Fund. The bill would appropriate $10,000,000 from the Capital Construction Fund to the Department of Transportation, Aeronautics Division. This money would be used to fund grants to qualified airports and consortium of airports for capital construction projects to establish, maintain, or improve intrastate commercial air service, as approved by the Aeronautics Board. The amount of money that would be expended for grants is conditional on the submission of qualifying grant requests and cannot be estimated at this time.

The division has indicated that they could reduce their Discretionary Grants Cash Fund appropriation by the amount of the additional expenditures required to implement this bill. This would increase their Administrative Budget. However, it is estimated that the increase in the division’s Administrative Budget would not result in it exceeding the 5 percent limit on administrative costs to the Aviation Fund.

The Division of Aeronautics would need to expend $45,475 in FY 1998/99 and $38,115 in FY 1999/2000 to implement the provisions of the bill. For informational purposes, the following summary of expenditures is provided:

The increase in personal services costs is to allow the division to upgrade its Planning Grants Specialist (PGS) I to a PGS II. The increase in professional services is necessary to allow the division to reimburse the Division of Highways for construction inspections, materials testing, and project design and management services.

The provisions of this bill could result in an increase in grant revenues. The amount of the impact to local governments is conditional on the grant requests that are submitted and approved.

The bill specifies that $10,000,000 would be transferred from the General Fund to the Capital Construction Fund and appropriated to the Department of Transportation for grants to qualified airport capital construction projects . The Department of Transportation, Division of Aeronautics would not require any additional cash spending authority in FY 1998/99. However, the Department of Law would require an additional Cash Fund Exempt appropriation of $2,880 CFE.

Division of Aeronautics Expenditures to Implement SB 98-028
	FY 1998-99	FY 1999-2000
Personal Services	$5,245	$5,245
Operating Expenses	2,500	1,000
Advisory Committee Expenses	9,850	5,910
Legal Expenses: 60/20 hrs @ $40	2,880	960
Professional Services (Contract)	25,000	25,000
Total Expenses	$45,475	$38,115