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US government not following own airport spending rules

Thursday, 15 October 20093 min read

Does the US government follow its own spending rules? Not if you consider a recent study on airport construction.

The American Recovery and Reinvestment act (ARRA) spend more than US$1 billion in federal stimulus airport grants through mid-September with more than 90 percent receiving priority ratings well below the FAA’s threshold for projects consistent with national goals and objectives.

So says a study by Subsidyscope, an initiative of the Pew Economic Policy Group.

The study also found of the more than 3,100 airport construction and rehabilitation projects costing US$2 billion from 2005 to 2009, were also below the FAA threshold for projects with national goals and objectives.

"With expenditures running into the billions, these findings show the benefit of making spending data more accessible. The public deserves to know the criteria used for determining how and when to spend taxpayer dollars," said Marcus Peacock, director of Subsidyscope. He added:

"So far, these data raise more questions than they answer."

Subsidyscope analysis also reveals that a number of small airports that accommodate as few as one paying passenger each year received significant amounts of federal funding from AIP.

The AIP funds projects were meant to enhance safety, protect the environment, or otherwise improve the nation’s aviation system.

Funded principally by revenue from ticket and fuel surcharges, and, therefore, largely by passengers using large commercial airports, the program disbursed US$3.5 billion in grants last year.

However, in fiscal year 2007, these large and medium hubs received only 33 percent of AIP funding, while small commercial and general aviation airports received 64 percent.
In terms of sheer dollars awarded,

By David Wilkening