ACI-NA: AIP Program Underfunded In White House Budget

In response to the Administration's Fiscal Year 2012 budget release, Airports Council International - North America (ACI-NA) expressed serious concern about the recommendation to reduce funding for job-creating programs that improve the nation's airport security and capacity infrastructure.

The President's proposed budget number for Federal Airport Improvement Program (AIP) grants is $2.4 billion, $1.1 billion below current funding levels.  The reduction is reached by eliminating guaranteed funding for large and medium hub airports.  The proposal also states, "…the Budget would allow larger airports to increase non-Federal passenger facility charges, thereby giving larger airports greater flexibility to generate their own revenues."
 
"Airports' top priority is to operate safe, secure and efficient facilities," said ACI-NA President Greg Principato. "By gutting the AIP, the Administration's budget proposal fails to provide the resources necessary to provide safe and secure facilities that reduce passenger delays and inconvenience."

ACI-NA President Greg Principato

AIP grants are one of four primary sources of infrastructure funding. The other three sources include passenger facility charge (PFC) user fees, airport bonds and locally-generated revenues.
 
"While I am pleased that the Obama Administration has recommended that airports utilize local financing to create local jobs by funding local infrastructure projects,"said Principato,  "this budget proposal to raise the PFC user fee is two years too late. Most especially because we know that Congress will not include this provision in the FAA bill despite the fact that it would allow local communities to create local jobs building local projects with local resources. So, we may get the AIP cut without the additional local freedom of the PFC user fee."
 
"If enacted, the President's proposal would certainly reduce the number of jobs created by airports for local projects," said Principato. According to the U.S. Department of Transportation estimates, for every $1 billion in infrastructure investment approximately 34,779 jobs are supported.

Principato had a similar statement following a the introduction of the FAA reauthorization bill in the U.S. House of Representatives last week

"Airports are disappointed that the authorized funding level for the job-creating Airport Improvement Program (AIP) falls short of the amount necessary to ensure passenger safety, security and airfield maintenance," he said.  "Also, that the Committee chose to continue to limit the ability of local communities to finance local projects with local money.  Without adequate investment in ground infrastructure, there can be no NextGen."

FMI: www.aci-na.org