Gary airport to cut budget for 2009 to comply with tax caps

BY KEITH BENMAN, Times of Northwest Indiana
kbenman@nwitimes.com

The Gary/Chicago International Airport will cut its general budget by 15 percent and raise some fees to deal with limited revenue, due to Indiana's caps on local property taxes.

The airport is proposing a 2009 general budget of $3,092,913, which compares to a 2008 budget of $3,635,000, according to airport authority budget figures.

The airport is considering raising its fuel flowage fee to 9 cents per gallon from its current 7 cents, according to Airport Director Chris Curry. Also under consideration is a 17 percent boost in landing fees.

The airport authority also wants to shift about $280,000 in expenses to its compact with the city of Chicago, under which it receives a cut of passenger fees paid at Midway and O'Hare airports.

The airport authority will appeal to the state's Stressed Unit Board to keep its tax levy above state-mandated caps, Curry said. Gary also is expected to appeal to the board for relief.

"Hopefully we will be able to stick to our plan and not have to do anything drastic and keep the airport open as the public is accustomed to," Curry told the airport authority board at a meeting last week.

He told the board the proposed 2009 budget assumes no unexpected occurrences at the airport. The tight budget will make it difficult to comply with Federal Aviation Administration guidelines for operations and safety, he said.