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Massport Sets Fiscal Year 2013 Operating Budget of $380.4 Million Revenues of $578 Million Will Also Fund $197 Million in Debt and in Maintenance Programs BOSTON – The Massachusetts Port Authority (Massport) today voted to approve a Business Plan and Operating Budget for Fiscal Year 2013 of $380.4 million. The budget represents a 1 percent decrease from the current year’s FY 12 operating expense budget. After operating costs – which include more than $18 million in payments in lieu of taxes to Boston and Winthrop – the Authority will spend $101 million on debt service and $60 million maintaining its facilities 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. The Authority also added $37 million to the FY12-16 capital program approved in February. “This budget and business plan recognizes the critical operating and infrastructure investment needs for Massachusetts citizens, businesses and customers,” said Richard Davey, Chairman of the Massport Board and Secretary of Transportation for the Commonwealth. “It mixes the fiscal caution needed in an uncertain economy with a bedrock commitment to providing excellent customer service, safety and security and new ways to promote high occupancy vehicle trips to and from Boston Logan International Airport.’’ Massport is governed by a seven-member volunteer Board appointed by the Governor of Massachusetts. The Authority receives no state tax funding and relies only on the rates and charges it sets for its properties to fund its operations. Massport facilities generate more than $8 billion in economic impact and support about 20,000 direct jobs. “This fully funded spending plan reflects the steady but very modest growth as the airline industry works through some consolidations, bankruptcy filings, and the sluggish national economy,” said Interim CEO and Executive Director David S. Mackey. “Despite these headwinds we expect passenger levels will reach a new all-time high, setting yet another record at Logan Airport. This budget also adjusts to the lower container volumes at Conley Terminal as contractions in world shipping cause a global slowdown and is fully funded without any state tax dollar support.” Budget reductions include the elimination of nearly $20 million in planned expenses from last year due to the loss of Suez service at Conley terminal and commercial activity at Worcester Airport. Massport also eliminated operating costs to manage airport parking during the recently completed Terminal B garage rehabilitation program, and lower utility expenses due to favorable natural gas prices.
Expenses included a $4 million pension increase to offset investment losses from the 2008 market downturn; $3 million for employee wage and health care adjustments and Massport’s required annual OPEB contribution; $3.2 million for various miscellaneous expenses including operation of the Logan Airport baggage screening system, airport strategic plan and PILOT increases to Boston and Winthrop and $1.2 million for parking operations during overflow conditions and encouraging greater use of mass transit and other high occupancy vehicle options to Logan.
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