In conjunction with Arizona’s public airports and the Federal Aviation Administration (FAA), ADOT develops the Five-Year Airport Capital Improvement Program (ACIP) to parallel the FAA’s Airport Capital Improvement Program. The ACIP has the dual objective of maximizing the use of State dollars for airport development and maximizing FAA funding for Arizona airports. Federal monies are derived mainly from taxes on airline tickets and are distributed by the Federal Aviation Administration directly to local airports. State funds come primarily from flight property tax, aircraft lieu tax and aviation fuel tax. The ACIP development process allocates money from the State Aviation Fund and distributes these funds across three major categories: Airport Development Grants Program, Airport Pavement Management System (APMS), and Airport Loan Program. The State Transportation Board approves this distribution annually.

As airport sponsors receive a federal grant, they will apply to the state for the matching funds. The maximum grant funds any one sponsor can receive can not exceed 10% of the average revenue into the State Aviation Fund for the period of three previous years. The maximum State/Local grant funds for the fiscal year 2012 Program is $2.15 M per airport.

The ACIP also provides for State funded loans and the Airport Pavement Management System (APMS).  ADOT also supplements airfield maintenance statewide with Airport Pavement Preservation Projects (APPP). In 2012, $4.6 M will be invested in Airport Pavement Peservation Projects at public airports.