During the May 8th Blueprint Intergovernmental Agency (IA) budget workshop, elected officials will consider a proposal to fund air service financial incentives in the amount of $670,000 annually beginning in 2026.
The proposal comes after public criticism of high fares and the loss of JetBlue service at the Tallahassee airport.
The proposed IA FY 2026 Capital Improvement Plan includes a new economic development funding request of $670,000 per year from the Incentives, Grants and Programs master project, for TLH air service development incentives and related air service capacity-related improvements. The cost of the program would be $3,350,000 over the five-year planning period and $10 million over the life of the Blueprint 2020 sales tax.
A consultant hired by the Tallahassee projects the incentive program would enhance, expand and improve air service in Tallahassee. Also, an analysis indicates the return on investment (ROI) would be approximately $1.1 billion in economic impact, with a corresponding 1,158 jobs created.
The agenda item notes that typically “project funding requests are presented to the Blueprint IA Board as separate agenda items for consideration. However, due to the time-sensitive nature of this project, OEV is requesting that consideration of this funding proposal be included as part of the Proposed Fiscal Year 2026 Operating Budget and 5-Year Capital Improvement Plan.”
The expediated approach will allow the staff to incorporate the proposed project into the budget for the first budget public hearing on August 28, 2025.
The agenda item notes that according to Federal Aviation Administration (FAA) regulations, community-sponsored funding unlocks additional incentives for the airport, such as Minimum Revenue Guarantees (MRGs), when recruiting new air service.
The agenda states that an “MRG is a financial risk-mitigation tool used by most communities and airports to attract new air service. It guarantees an airline a minimum revenue amount for a new route over a defined term, not to exceed 24 months. If the actual revenue falls short, the MRG fund covers the difference, up to the predetermined cap. This support helps mitigate early-stage financial uncertainty and encourages airlines to enter markets they might otherwise overlook. It is important to note that an MRG is not a subsidy, but it is an effective, highly regulated risk-mitigation tool that has become an expected incentive in the airline industry.”
If approved, the Tallahassee International Airport will provide all necessary technical support to establish and maintain the requirements for the incentive program per FAA regulations. The Airport will be responsible for and manage all correlated capacity enhancements required for establishing, maintaining and improving all new carriers, routes and services such as gate, screening, baggage and signage improvements. In addition, the Airport will manage all FAA required notices as well as marketing per FAA guidelines. The FAA will not allow the “community sponsored” funding to be comingled with airport funding for MRGs. As such, the City of Tallahassee will be required to administer the contracts for each MRG.
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There have been several “airport incentives” tried in the past 2 decades, accounting for millions of our tax dollars. NONE of them have worked. Geographically, as long as Tallahassee is less than 300 miles from Jacksonville, Tallahassee will NEVER get discounted air service that sticks around after the incentive money runs out. This is a BAD BAD idea!
Privatize the airport now! City Officials are wasting our tax $$$, as always! We need more cops not speeding lights!
The airport doesn’t need “incentives” this is just more bs that blueprint shouldn’t be funding. Our airport works just fine the way it is. How about giving the criminal element an “incentive” and do something to that effect with the money…like hire more cops. Oh hell no, that’s an anathema to the miscreants we put on these collective commissions. A pox on all their houses.
A guy I know who built that Building by the Airport where “Trans Am World Wide” is now, built that Building to work on Cars, store HIS Cars and to store other peoples Cars for a Fee, told me that several of his Customers asked him if they could leave their Cars there instead of leaving them at the Airport. He decided to offer that service to his Customers so he had a Sign made and over the weekend placed it out by Capital Circle on Land owned by a buddy, with permission. By Wednesday Morning the Airport Authority was in his Shop telling him to remove that sign NOW and stop offering that Service or else. YES, Privatize the Airport.
Better idea. Privatize the airport and leave my tax dollars out of it. Govts job is protecting my life and liberty, not airplanes.
I suspect the problem is all the ‘International’ connections to Athens-Dublin-Vienna and Rome… Georgia, required a transfer with Greyhound.
Not my real name
Along the same line as “if you build it they will come” there is “if you give government money they will find a way to spend it”.
The cake party red carpet for Jet Blue wasnt incentive enough? Throw some more money at it! Including guaranteed revenue if it doesnt work yet again.
“It is important to note that an MRG is not a subsidy, but it is an effective, highly regulated risk-mitigation tool that has become an EXPECTED incentive in the airline industry.”
All businesses should have this as an expected incentive. Dont make enough money? Govt will give you some. BRILLIANT.
Vote all these people out.
More bs. Tallahassee will not gain any new service. Airport needs to be privatized asap. The current way the airport is run is corruption at an unprecedented level
“Blueprint to fund air service financial incentives in the amount of $670,000 annually beginning in 2026.”…………………………… I am pretty sure that Blueprint is NOT meant to do THIS. It seems like you are splitting Hairs and Reinterpreting the what it IS for.