A proposal to increase the amount of money the state can spend on individual airport projects could shift the balance of contracts from maintenance work to large-scale construction.

That's a change Tom Walker, director of government affairs for the Wisconsin Transportation Builders Association, is fighting. WTBA members most commonly perform grading work, runway improvements and other maintenance projects that could be threatened if the state changes its spending formula, he said.

"It could keep the state from the basic nuts and bolts of airports -- expanding a runway, overlaying a runway, aprons, taxiways, fencing of the airport," Walker said. "There is the potential to mine for resources that could literally eat up the whole program. "

Assembly Bill 152 would increase the state's spending cap from $500,000 to $2 million on single airport building projects and also let the state pay for hangar construction. But the bill would not increase the overall amount the state spends on airport construction.

The state increased the cap from $100,000 to $500,000 in 1993.

"We're looking to catch the state up to current construction costs," said state Rep. Jim Steineke, R-Kaukauna, who wrote the bill, "and it's going to help with economic development. "

That growth, Steineke said, could stem directly from the provision in the bill letting the state spend its money on hangars.

"If you have an airport that wants to help attract businesses, we don't feel like that should be excluded," he said. "We think that's a good avenue to bring jobs to the area. "

The state Department of Transportation has an annual budget of about $110 million for its airport improvement program, said Keith Gerard, airport program section chief. The Federal Aviation Administration covers about 65 percent of the budget, and the state contributes about $13 million annually. Municipalities pay for the remaining costs of local projects.

While the state relies on federal money for airport projects, Wisconsin controls the entire pot of money. The state receives its annual appropriation from the FAA, and then local airports petition for a portion of the money for specific projects, said Keith Markano, Waukesha County Airport manager.

The state then sets a priority list.

Six years ago, Markano said, the FAA updated its regulations to let states use the federal money for hangar building projects, but the state so far has not adopted the changes. Markano, who said he supported the bill, said the cost of a hangar could vary depending on the size, but he estimated a 10-unit plane shed could cost between $350,000 and $400,000.

Whether the money is spent on hangars or other projects, Steineke said, increasing the cap only gives the state flexibility. The increase, he said, does not equal a preference for larger projects.

"The agency is going to use their discretion in doling the money out," he said. "If they are dealing with $13 million for these projects, they aren't going to spend $2 million on six projects and be done. "

That's not a guarantee, Walker said.

"If you raise the cap, (airport managers) will apply for as much money as they can get to," he said.

"The question becomes: If we are going to spend our money there, how are we going to take care of the nits and grits of the system?"