GOVERNMENT AFFAIRS UPDATE. ACI-NA Airport Board & Commissioners Conference Biloxi, Mississippi April 14, 2013

Transcription

1 GOVERNMENT AFFAIRS UPDATE ACI-NA Airport Board & Commissioners Conference Biloxi, Mississippi April 14, 2013

2 Current State of Play in DC Chronology: Sequestration ($85 billion / 2.3% cut to Federal Gov t spending): Began March 1, 2013 and likely to stay in place Does not impact AIP funding Impacts FAA Operations (ATC) as well as CBP and TSA staffing Continuing Resolution (CR): Extended through the end of FY13 (Sept. 30) in late March Budgets: House & Senate each passed budgets in late March. President s Budget released on April 10 Debt Ceiling Expires in late July early August Backstop if there is to be a Grand Bargain Grand Bargain would be a reset of taxes & spending on a large scale Potentially, next best opportunity to obtain a PFC increase Tax Reform Talks and Initial Activity Happening Simultaneously in Background

3 Millions FAA Administration Expense Has Gone Up When Airport Grants Decreased Grants-in-Aid Administration R&D ACRP SCASDP $3,600 $3,500 $10 $71 $18 $75 $19 $19 $22 $22 $3,400 $81 $87 $93 $93 $3,300 $3,200 $29 $101 $29 $102 $3,100 $3,459 $3,437 $3,395 $3,385 $3,378 $3,378 $3,000 $3,199 $3,211 $2,900 $29 $2,800 $107 $2,700 $2,749 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 CR FY2014 EST* * President s Proposed Budget for FY2014 Source: FAA 3

4 PFC Campaign Strategy & Tactics Strategy & Tactics ACI-NA adopted PFC policy at February U.S. Policy Board meeting to appropriately position the association to leverage legislative opportunities which arise. ACI-NA Government Affairs staff developed a campaign plan and timeline to guide our work on this issue in Enhanced outreach, coordination and engagement with all airport members. Outreach to and education of targeted Members of Congress to establish baseline knowledge/ understanding of airport financing and the importance of/ need for increase in the PFC. Engaged in dialogue with DOT, FAA and White House regarding the justification for increasing the PFC. Outreach to various interest groups.

5 Key Points on Why Increasing the PFC is Needed Capital improvements are necessary to update aging infrastructure and meet projected long-term traffic growth projections. ACI-NA Capital Needs Survey estimates U.S. airport system (commercial and non-commercial) have $71.3 billion in capital needs over the next 5 years ( ). Cap on local airport user fee (PFC) needs to be raised to $8.50 to restore PFC s purchasing power. PFC s have not been increased in 13 years. Airports should have financial freedom to fund projects to maintain and upgrade their facilities, which yields local jobs and economic development. Increasing the PFC and allowing large and medium hubs to assess an uncapped PFC will allow for this. Airports have responsibly responded to reduced flights, decreasing capital projects where appropriate. While U.S. capital needs are less in 2013 compared with 2011, the average annual amount of airport capital needs ($14.3 billion) is still significantly higher than the funding available through annual PFC revenue and AIP grants.

6 The $4.50 PFC Should be $8.50 with Construction Cost Indexing Note: 1. The $3 PFC was enacted in 1990 and the PFC cap was lifted to $4.5 in ENR construction cost index was used to make inflation and deflation adjustment.

7 Protecting Municipal Bonds ACI-NA Action on Protecting Municipal Bonds Joined a new coalition run by the Bond Dealers of America called Municipal Bonds for America. We are the coalition s leadership for Government Affairs- developing a legislative and messaging strategy on the importance of municipal bonds. Developed a white paper on the importance of municipal bonds to airports financing to hand out on the Hill. Working with the Government Finance Officers Association in a coalition with the National League of Cities, the National Association of Counties and other municipal organizations. Helped write H.Res.112 that was introduced in the House that recognized the 100 th anniversary and importance of tax free municipal bonds.

8 ACI-NA Resources and Questions Questions: Please contact the ACI-NA Government Affairs Team: George Kelemen Annie Russo Channon Hanna Fact Sheets On Airport Issues Available at Thank You!