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Massport Sets Fiscal Year 2012 Operating Budget of $384.4 Million
Revenues of $567 Million Will Also Fund $111 Million in Debt and $68 Million in Maintenance

BOSTON – The Massachusetts Port Authority (Massport) today voted to approve a Business Plan and Operating Budget for Fiscal Year 2012 of $384.4 million. The budget represents a 7 percent increase, half of which is associated with a 58 percent increase in container volume in Maritime and increased demands on airline employee parking programs. Massport facilities generate more than $8 billion in economic impact and support about 20,000 direct jobs.

Total revenues for the fiscal year that begins July 1, 2011 will be $567.4 million, a $33.6 million or 6.3% increase over last year’s budget. After operating costs – which include more than $17 million in payments in lieu of taxes to Boston and Winthrop – the Authority will spend $111 on debt service and $68 million maintaining the facilities we have in a good state of repair. Massport is required by its trust agreements to budget one percent of the value of its assets for maintenance.

Massport is governed by a seven-member volunteer Board appointed by the Governor of Massachusetts. Throughout the economic downtown, the Authority – which receives no state tax funding and relies only on the rates and charges it sets for its properties – cut staff, and in 2009 froze salaries for non-unionized positions and slashed non-essential expenses. The current budget maintains that fiscal discipline and staff levels remain well below pre-recession levels.

“This budget and business plan are fully funded. They represent fiscal restraint that is appropriate and necessary for the times while we focus on excellent public service, safety, and security, and on Massport's role in creating jobs and being an important economic engine for the region.’’ said Jeffrey B. Mullan, Chairman of the Massport Board and Secretary and Chief Executive Officer Massachusetts Department of Transportation.

“By continuing to invest in Massport’s facilities during the most recent economic downturn, the Board has maintained Massport’s forward momentum while positioning the Authority for future growth now that the economy seems to be rebounding,’’ said David S. Mackey, Massport’s Interim CEO. “The additional $25 million in the budget is necessary to keep our growing number of passengers safe and secure, and to make sure we continue to provide high levels of customer service.’’

Some of the projects that increased the operating budget are a significant increase in container handling labor costs to manage the 58% increase in volume, increased busing service for airline employees to and from the Chelsea garage, new safety and security initiatives to train a new state police class, and safety inspections, and health care cost increases. Budget reductions come from lower utility expenses from favorable natural gas prices, savings from a newly implemented self insurance program, and other one-time program reductions of temporary overflow parking and busing operations during construction of the new economy parking facility.

Boston Logan, 15 minutes from the intersection of Route 128 and I-90 and five minutes from downtown Boston, serves as the gateway to the New England region and offers nonstop service to 70 domestic and 31 international destinations and in 2009 handled 25.5 million passengers. Boston Logan is the Air Line Pilot Association’s Airport of the Year for 2008 because of its commitment to safety. Over the past decade, the airport spent $4.5 billion on a modernization program that includes new terminals, parking facilities, roadways and airport concessions, and has been transformed into a world-class 21st Century facility. The airport generates $7 billion in total economic impact each year.

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The Massachusetts Port Authority (Massport) owns and operates Boston Logan International Airport, public terminals in the Port of Boston, Hanscom Field and Worcester Regional Airport. Massport is a financially self-sustaining public authority whose premier transportation facilities generate more than $8 billion annually, and enhance and enable economic growth and vitality in New England. No state tax dollars are used to fund operations or capital improvements at Massport facilities.

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