Airport Funding: Who should decide?
Today, a coalition of free market groups expressed support for an idea to eliminate the federal cap on the airport passenger facility charge. In a letter delivered to select House committee and subcommittee leaders, representatives from 9 groups made the entire case for empowering airports and local officials to create their very own decisions about airport funding. Start to see the letter:
Dear Chairmen DeFazio and Larsen and Ranking Members Graves and Graves:
today in strong support of H
We write.R. 3791, Investing in the us: Rebuilding America’s Airports Infrastructure Act, that was introduced by Reps. Thomas Massie (R-KY) and Earl Blumenauer (D-OR).
We think that market forces—not the federal government—ought to be what drives a 21st century aviation policy. To go in this direction, Congress must take away the federal yoke from airport financing. We must move to something where airports are self-sufficient fully, of reliant on federal tax dollars instead. We are looking for a system which will allow decisions to be produced at the neighborhood level and something where in fact the users of airports bear the duty of spending money on that use—not taxpayers. To carry out so, the Congress should take away the federally imposed cap on the Passenger Facility Charge (PFC).
The responsibility for financing infrastructure needs at airports ought to be borne by the airports and the travelers who use and directly reap the benefits of those facilities. By detatching the imposed cap on the PFC federally, airports may become self-sufficient and break their dependence on federal taxpayer dollars.
H.R. 3791 wouldn’t normally only allow airports to meet up the a lot more than $100 billion in infrastructure needs they’re now facing, it can so with out a single penny of new federal dollars. Actually, H.R. 3791 would reduce annual federal spending by $400 million by reducing Airport Improvement Program (AIP) entitlement grants for large hub airports that collect PFCs higher than $4.50.
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PFCs can promote airline competition and reduce airfares for travelers also. Because the Congressional Research Service has noted, the PFC’s additional flexibility has resulted in it used largely for landside airport projects such as for example adding gates and passenger terminals. AIP for legal reasons cannot be useful for gate expansions or most passenger terminal projects most importantly airports, so those funds find yourself supporting landside projects such as for example runways and taxiways mostly. Limited gate access at hub airports has been estimated to improve consumer airfares by $5.72 billion in 2018 dollars, dwarfing total annual PFC collections of $3.51 billion in 2018. Having an optical eye on promoting airline competition through expanded gates, uncapping the PFC under H.R. 3791 will promote airport infrastructure development in a genuine way that may save American travelers money.
America’s airports are powerful economic engines, generating a lot more than $1.1 trillion in annual supporting and activity more than 9.6 million jobs. However, airports are facing $100 billion in unmet needs in infrastructure improvements to update aging facilities, relieve congestion and delays, promote security and safety, improve the passenger experience, along with spur airline competition to supply consumers with an increase of choices and affordable options. Washington should escape the way and invite airports to create a PFC that’s consistent with their local needs and something that reflects market realities.
Competitive Enterprise Institute
James L. Martin, Founder/Chairman
Saulius “Saul” Anuzis, President
60 Plus Association
Andrew F. Quinlan
Center for Prosperity and Freedom
Council for Citizens Against Government Waste
Vice President of Legislative Affairs
Director of Transportation Policy
Harry C. Alford
President & CEO
National Black Chamber of Commerce
Transportation & Infrastructure Policy Fellow
R Street Institute
Taxpayers Protection Alliance
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