Potential cuts in federal airport money could slow growth at Burlington's airport
The state's largest airport, which is in South Burlington, relies on money from the federal Airport Improvement Program to pay for 95 percent of most major building and maintenance projects, Searles said.
Critics of the cuts have predicted that smaller airports such as Burlington could see federal funds slashed by 50 percent. That's bad news for an airport that has seen record-setting numbers of passengers in recent years and has some $38 million in projects planned for the next eight years, Searles said.
"The aviation industry is very unhappy about this proposal," he said. "We have an industry here that is expanding. There are more and more people who want to fly, and airports are working hard to accommodate those people, and to cut funding by 20 percent with business increases doesn't make any sense to me."
The Bush administration has proposed cutting $950 million out of the $3.7 billion in Airport Improvement Program money that Congress included in the fiscal year 2007 budget. The federal fiscal year starts Oct. 1.
The cuts would allow work to continue on projects under way and keep the focus on reducing congestion in airports and making air travel safer, according to the Bush administration. The airport industry and House Democrats are trying to reverse the cuts as Congress writes the federal budget, a process that typically lasts into late September.
"I am not cynical enough to think that Congress will take care of this and I can go play tennis now. We have to make the case," said Greg Principato, president of Airports Council International-North America. "Taking a billion dollars of what's available for capital-improvement projects at a time when the system is adding passengers at a very fast clip just doesn't make sense."
Airport Council International estimates the country's airports require a total of $14 billion a year -- more than the grant program provides -- to make air travel safer and smoother for passengers.
Airports can use Airport Improvement Program money on most capital improvements related to safety, capacity, security and environmental concerns, according to the Federal Aviation Administration.
A total of 3,364 airports receive improvement grants.
For its fiscal 2007, which starts July 1, the Burlington airport has $7.5 million in projects that would qualify for the funding, Searles said. This fiscal year, $9.9 million in projects were funded through the program.
The airport has a master plan that started in 2004 and runs through 2014 that includes $60 million in projects, $22 million of which has been spent, Searles said.
Darryl Jenkins, an aviation consultant, said airports in hundreds of small and medium-sized towns in rural America would be disproportionately hit if the money is cut because they rely more on the grants for capital projects compared with big airports such as New York's Kennedy International, Chicago's O'Hare or Atlanta's Hartsfield.
Burlington is considered a small hub, Searles said.
Smaller communities don't have a large number of airlines operating out of their airports. That means they don't get millions of dollars in fees, landing charges and rents that airlines pay metropolitan hubs, Jenkins said.
Smaller airports also don't have the assets to issue bonds and attract private investment as the big airports can.
In May, 47 House Democrats said in a letter to their colleagues who set federal spending levels that slashing a program that has provided airports, large and small, with billions of dollars since 1982 is shortsighted.
They said the Bush plan would change the formula the FAA uses to award yearly grants. Under the proposed revisions, the critics wrote, airports serving more than 10,000 passengers a year could see reductions of as much as 50 percent, and the country's 2,500 tiniest airports could lose the $150,000 each now receives.
FAA Administrator Marion Blakey defended the cuts recently saying that many federal programs must be trimmed to pay for the Iraq war and rebuild the Gulf Coast after hurricanes Katrina and Rita. Besides, Blakey said, 95 percent of the country's airfields are in fine shape, and airports can still receive federal funds through other grant programs. However, those programs do not guarantee a minimum yearly payment.
"There are probably going to be some rehabilitation projects that will have to be deferred, but that is not going to affect either the safety or capacity of our system. I think we are, in fact, exceeding our goal," Blakey said.
Since 2001, the Bush administration has provided "very robust funding" through the grant program, she said. "Some of the smaller airports have had what would be characterized as quite extensive funding."
Searles noted that much of the airport's master plan is focused on necessary maintenance of runways and facilities.
"This 10-year plan looks out into the future at planned rehabilitation or reconstruction of just about everything on the airfield," Searles said. Burlington doesn't have many options to replace the funding if it were cut, he said. The airport raises money from businesses such as car rental companies and from the airlines in the terminal.
"We work hard to remain competitive with other airports at a time when the airline industry is struggling to become profitable again. This would be not time to raise terminal rents," Searles said.
Burlingtonfreepress.com
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