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24th. He stated that an update on the outcome is planned for the April meeting. Chair Smith stated
leaders also noted that workforce availability is a key concern for companies considering
locating at AirCommerce Park, and although the Hampton Roads region has strong workforce
programs tied to maritime trades, aviation-specific training opportunities are more limited. She
reported that expanding these resources is considered essential to attracting aviation-related
businesses to the airport.
EVTOL Integration Pilot Program (EIPP). Mr. Morello reminded the Commission that this
initiative is led by the Mid-Atlantic Aviation Partnership at Virginia Tech and the Virginia
Department of Aviation. He said that it aims to establish one of seven national demonstration
corridors for integrating Advanced Air Mobility (AAM) and other new aviation technologies,
both crewed and uncrewed, into the national airspace system in cooperation with numerous
private-sector partners involved in AAM through a previously authorized non-binding
memorandum of understanding (MOU). He also reminded them that PAC is participating in both
a state-level and a multi-state initiative and the state-level program focuses on the technical
aspects of testing operations from airports and other potential launch locations. Mr. Morello
stated that a multi-state effort led by the Pennsylvania Department of Transportation includes
Virginia and nine additional states and focuses on broader policy development and national-level
recommendations to the FAA on regulatory guidance for integrating these emerging
technologies. He stated the application team is awaiting conclusion of both selection processes
and is hopeful that a decision will be announced in the near future.
Committee Reports:
Finance & Audit Committee. Mr. Morello presented the Proposed FY27 Budget, beginning
with an overview of the revenue, expense, and net income projections (see Exhibit A). He stated
that the budget development process included extensive cross-departmental collaboration and
multiple meetings to identify critical operational and capital needs. He directed attention to a
multi-year capital planning document provided to Commissioners identifying non-recurring and
critical projects, most of which are necessary for regulatory compliance or essential operational
needs, with several tied directly to the long-term economic development strategy associated with
the AirCommerce Park initiative. He explained that revenue projections were developed using
analysis and conservative approaches informed by FY26 performance trends, among other
factors. He stated that, as an example, FY26 reductions in airline service of two fewer flights per
day were somewhat offset by higher load factors experienced by the remaining flights. Mr.
Morello reported that some potential revenue sources, such as terminal space rentals for events,
additional parking license agreements, advertising space, and a future landing fee billing
capability, were intentionally omitted from the proposed FY27 revenue budget as part of a
conservative approach. As for expense budgeting, he explained these were also developed
conservatively, focusing on prioritizing critical needs and delaying nonessential expenditures,
and that FY27 Labor and Benefits include planned wage adjustments. He further explained that a
temporary two-year reduction in employer contributions to the Virginia Retirement System due
to strong fund performance will help off-set standard annual wage and benefit increases. Mr.
Morello reported that significant cost savings were identified in marketing and advertising by
shifting away from traditional mass media toward more targeted, data-driven digital and social
media strategies for FY27. He stated that savings will also be realized in Office Administration
through improved operational efficiencies and reduced supply costs that began in FY26, and that
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