Airports Disappointed at Administration’s Lack of Funding
for Security and Capacity
In response to the
Administration’s Fiscal Year (FY) 2008 budget release,
Airports Council International – North America (ACI-NA) has
expressed serious concern that the Administration is once again
recommending reduced funding for the nation’s airport
security and capacity infrastructure.
“Airports’ top priority is to operate safe, secure
and efficient facilities,” said ACI-NA President Greg
Principato. “The Administration’s budget proposal fails
to provide adequate resources to handle the estimated one billion
passengers and increased cargo expected by 2015.”
The proposed Department of Homeland
Security (DHS) budget does not specify funding for in-line
Explosive Detection Systems (EDS) baggage screening equipment,
which ACI-NA advocates. Congress has also expressed strong support
for this critical security enhancement.
In addition, the Administration announced that it wants to cut
FY 2008 funding for the Federal Aviation Administration (FAA)
Airport Improvement Program (AIP) from the FY 2006 and expected FY
2007 $3.5 billion level to $2.75 billion—a drop of more than
27 percent from previous years.
Federal AIP grants are one of four primary sources of
infrastructure funding. The other three sources include airport
bonds, local Passenger Facility Charges (PFCs) and locally
generated revenues.
“We’re pleased that the Administration refers to its
reauthorization proposal which ‘will empower airports with
strong local revenue sources [PFCs] to attract private capital and
improve airport performance,’” said Principato.
ACI-NA advocates an increase in the
PFC from the current cap of $4.50 to $7.50, as well as indexing
PFCs to ensure that their value is not eroded.
The FY 2008 budget proposal assumes FAA will implement a new
financing mechanism in FY 2009 and, beginning in FY 2008, implement
changes to FAA’s account structure. FAA will replace its
Operations and Facilities and Equipment accounts with the Air
Traffic Organization (ATO) and Safety and Operations accounts.
“We need further analysis to determine the impact of the
proposed changes for the account structure to guarantee a stable
and predictable funding stream for modernization,” said
Principato. “Our airports and their communities will work
hard this year to ensure Congress adequately funds aviation
needs.”