Funding Aviation in Montana

House Bill 661 was signed into law by Governor Steve Bullock on May 10, 2019, after a rollercoaster ride through the legislative process. The bill was conceived by a group of aviators that came to be known as “Pilots for Montana Airports.” The group of volunteers was formed with the sole purpose of finding a solution for aviation funding in Montana and was comprised of Jerry Cain (Lincoln), John McKenna (Bozeman), Walt McNutt (Sidney), Carmine Mowbry (Seeley Lake), Doug Phair (Miles City), Pete Smith (Lewistown) and Terry Spath (Lincoln). The bill was introduced and sponsored by Representative Geraldine Custer of Forsyth and carried in the Senate by Senator Duane Ankney of Colstrip.

The bill, in its original form, would have provided funding as follows: 1) increase the aviation fuel tax from 4¢ per gallon to 14¢ per gallon distributed as 2¢ to Aeronautics operations, 8¢ to the airport improvement grant fund, and 4¢ to a new education fund; 2) repeal the ½¢ per gallon allocation paid by the scheduled passenger carrying airlines for the pavement preservation fund; 3) repeal the 2¢ per gallon rebate to scheduled passenger carrying airlines; 4) change the distribution of aircraft registration fees from 90% to the general fund and 10% to Aeronautics operations to 30% to the general fund and 70% to Aeronautics operations.

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