The MassDOT Aeronautics Division obtains its funding for airport development and planning projects from a General Appropriations account and from State Transportation Bond Issuance, both of which are approved by the State Legislature. Appropriated funds are derived from aircraft registration fees, aviation gas tax, and fees for air transportation charged to other state agencies. The 1995 Transportation Bond appropriated $22 million to the Aeronautics Division for airport development and planning projects under AIP and ASMP. Subsequent bond issues have appropriated an additional $73 million for airport development and planning projects statewide.
Historically, the Aeronautics Division contributed up to 70% of a project cost adjusted for federal participation. Section 59 of the 1995 Transportation Bond increased the percentage of state participation for eligible projects and authorized the Aeronautics Division to reimburse an airport sponsor for up to 80% of the total project cost as adjusted for federal reimbursement, if any. The local sponsor is responsible for funding the remaining 20% of the total project cost under the ASMP program. The Aeronautics Division also has the ability to fund up to 100% of the total project cost for security improvement projects.