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.”

FMI: www.aci-na.aero