1. Statutory authority: Section 400 of the Transportation Law provides for the Commissioner of Transportation to establish and collect rates and charges as deemed necessary or desirable. Specifically Transportation Law section 400(3)(c) give the Commissioner authority to establish, levy and collect such fares, tolls, rentals, rates, charges and other fees as may be necessary for the use and operation of Republic Airport.

2. Legislative objectives: Republic Airport was transferred from the Metropolitan Transportation Authority to the Department of Transportation in 1982 by Chapter 370 of the Laws of 1982 which adopted a new Transportation Law Article 15, Air Transportation Facilities and Services at Stewart and Republic Airports. Specifically, section 400(3)(c) was created to “establish, levy and collect such fares, tolls, rentals, rates, charges and other fees as the commissioner deems necessary, convenient or desirable …” Further, it was the intent of the Legislature that the operation of Republic Airport be self-supporting. This intent requires the airport to periodically update its rates and charges to account for changes in the consumer price index over time.

3. Needs and benefits: The Airports operating budget must function on a self-sufficient basis. The operation expenditures are not subsidized in any manner. All operation expenses are directly funded through the various user fees collected. Rates and charges at the airport have not been updated since 1992. Since then, operating expenses have steadily increased each year. Republic Airport operation is experiencing a deficit that is approaching several hundred thousand dollars each year. The proposed fee and rate increases will alleviate this deficit and allow Republic Airport to continue to provide services for its customers. Updating the rates and charges at the airport will result in an increase in revenue of approximately $390,000; this will permit the airport to meet its annual operating costs.

4. Costs: The increase in the rates and charges at the airport is expected to generate about $390,000 in extra revenue.

a. Use of Republic Airport can be broken into two groups: private individuals operating small aircraft and corporate clients usually operating jet aircraft. Private individual's costs would be realized primarily in their tie-downs fees. The average increase would be about $40 per month or $480 per year. However, the increase in landing fees would not affect the smaller private aircraft individuals. Therefore, the pilot operating a small, single engine plane would not see an increase in landing fees.

b. The larger the corporate aircrafts clients would realize an increase in their landing fees. Aircraft exceeding 20,000 pounds would be subject to the majority of the landing fee increase. These are generally larger corporate clients. See chart below.

c. There would be no cost to the Department of Transportation, New York State, or any local government. Official flights do not pay landing fees.

5. Local government mandates: There is no imposition of any mandates upon local governments by the rule amendment.

6. Paperwork: There is no additional reporting or paperwork requirements as a result of the rule change.

7. Duplication: There are no duplicative, overlapping or conflicting rules or legal requirements, either under federal or state law.

8. Alternatives: The only other alternative that was considered was to leave the rates and charges as they exist now. This would only exacerbate the deficit that the airport operates under as inflation continues to increase the costs to operate the airport. That alternative was not chosen.

9. Federal standards: There are no applicable federal government standards implicated as a result of the rule change.

10. Compliance schedule: Immediate upon adoption.

1. Effect of rule: No local government will be affected by this rule as no local government operates through Republic Airport. Most of the corporate flights through Republic Airport are by larger companies doing business on Long Island and the proposed rule will not significantly effect their operation. There are small firms that do business at the airport, but the additional costs will be passed on to their passengers. Since the rates currently charged at the airport are lower than comparable facilities in the New York metropolitan area, there should be little to no loss of business.

2. Compliance requirements: There is no reporting, recordkeeping, or other acts required to be undertaken as a result of this rule.

3. Professional services: There are no professional services required to comply with this rule.

4. Compliance costs: There are no capital costs to comply with this rule. There are no annual costs for local governments to comply with this rule since no local government operates through Republic Airport. The annual costs for this rule are estimated at $390,000. The majority of these costs will be borne by larger businesses. Small business will pay a fraction of this cost and the cost will depend on the number of flights the small business do at Republic Airport.

5. Economic and technological feasibility: There are no technological requirements of this rule. Economically, the proposed rule is feasible for small businesses as the business jet market has been growing at Republic Airport at a seven to ten percent annual rate.

6. Minimizing adverse impact: The rule will have no adverse economic impact on small businesses or local governments. Local governments do not operate through Republic Airport. Small businesses will pay a percentage of the $390,000 in revenue increase that will be seen at the airport, but this is a small fraction of the cost of these companies doing business.

7. Small business and local government participation: Local government is not impacted by the proposed rule. However, the Town of Babylon has been notified of the proposed rule and was offered the opportunity to comment on the proposal. Before this rule was submitted for approval, meetings were held at Republic Airport giving tenants and operators at the airport an opportunity to provide input to the costs being proposed. This input was used to establish the rates and charges proposed by this rule.

1. Types and estimated numbers of rural areas: This rule will not apply to rural areas.

2. Reporting, recordkeeping and other compliance requirements; and professional services: There are no reporting, recordkeeping, or professional services required by this rule.

3. Costs: This rule will not affect rural areas.

4. Minimizing adverse impacts: Since this rule does not affect rural areas, there are no adverse impacts to minimize.

5. Rural area participation: There are no public or private interests from rural areas to participate in this rule making process.

1. Nature of impact: There should be no job impacts as a result of this rule. The primary increase in cost due to this rule is to the business jet market. This is a rapidly growing section of the aviation industry as seen by the increase in jet traffic at Republic Airport over the past five years. Furthermore, the rates charged at Republic Airport are lower than those of airports in the New York metropolitan area. Therefore, the fact that this is a rapidly expanding market and the rates at Republic Airport are so low means that the affects of this rule are negligible.

2. Categories and numbers affected: There should be no jobs or employment opportunities affected by this rule.

3. Regions of adverse impact: No region of the state should have an impact from this rule.

4. Minimizing adverse impact: Since there should be no job impacts as a result of this rule, there are no adverse impacts to minimize.

5. Self-employment opportunities: The operators of aircraft that will pay the significant amount of the increase are all corporations and therefore the rule will not affect self-employment opportunities.