LEXIS-NEXIS® Academic Universe-Document

LEXIS-NEXIS® Academic

June 17, 1999, Thursday, Metro Edition

SECTION: NEWS; Pg. 2B

LENGTH: 506 words

HEADLINE: Minnesota airports would win big with spending bill

BYLINE: Greg Gordon; Staff Writer

DATELINE: Washington, D.C.

BODY:
Eight Minnesota airports stand to collect a windfall far surpassing $100 million over the next five years under a $57 billion aviation spending bill that sailed through the U.S. House this week.

     It increases federal spending on airport-improvement projects from $1.95 billion this year to $4 billion in 2001. It also allows airport commissions to double, to $6, the fees they can charge each passenger to finance construction projects.     The Minneapolis-St. Paul International Airport easily would be Minnesota's biggest winner, receiving an additional $46.5 million in 2001 if the Metropolitan Airport Commission (MAC) increased its passenger fee from $3 to $6, officials at the Airports Council International said.

    The higher fees would generate $75 million per year, up from $37 million. The state's entitlement grants under the federal Airport Improvement Program also would increase from $4.35 million this fiscal year to $13 million in 2001, council officials said.

    Jeff Hamiel, the MAC's executive director, said the bill would help the commission hold down its debt as it pursues a $2.54 billion airport expansion over the next six years, including adding a runway and 20 gates. He said the MAC had expected to borrow $1.25 billion to $1.5 billion, but "now it will be less."

    Airports in other Minnesota cities also would get money, particularly if they raise passenger fees. Airports Council officials said the Duluth airport's revenues from passenger fees and federal entitlement grants would rise from $992,000 to $2.7 million and the Rochester airport's from $1.2 million to $3.2 million.   Airports in Brainerd, Bemidji, International Falls, St. Cloud and Hibbing would receive similar increases.

    However, four of Minnesota's eight House members opposed the bill, which creates a "firewall" around the aviation trust fund so that passenger ticket taxes are spent only for aviation purposes.

    Rep. Martin Sabo, D-Minn., a former chairman of the House Budget Committee, objected to such a move Tuesday, arguing that it would unfairly leapfrog aviation ahead of housing, education, veterans health care and other needs.

    He said the trust fund should not be considered sacrosanct, because "we put over $55 billion in general-revenue funds into the airport trust fund over the years." Also opposing the bill were Minnesota Democrats Bruce Vento and Bill Luther and Republican Jim Ramstad.

    But Rep. Jim Oberstar,   the ranking Democrat on the House Transportation and Infrastructure Committee, appealed to legislators to examine how altering the bill would "affect each member's state and each member's airport."

    He said it would increase   air travel efficiency and keep America "the leader in aviation."

    While the bill's five-year authorization passed, 316-110, Tuesday night, it still must clear the Senate, and the White House has threatened a veto.

LOAD-DATE: June 17, 1999