Bedford Minuteman
April 18, 2002

Massport in the black but continuing to make cuts

By BARBARA FORSTER
CORRESPONDENT

For the second time in more than 15 years, the budget year at Hanscom Air Field ended in the black. According to the State of Hanscom report delivered to the Hanscom Air Field Advisory Commission last month, revenues for 2001 totaled a record-breaking amount, $4.1 million, a 13.8-percent increase over last year.

Massport isn’t basking in the glow of black ink, however. In fact, revenue expectations are much lower for next year and security expenses are much higher. The reason is that fiscal 2001 ended on June 30, almost three months before Sept. 11.

In anticipation of bad revenue news for this year, a round of belt tightening is in place at the air field. A number of maintenance and improvement projects including window replacements on the second and third floors of the Civil Air Terminal are on hold. Plans to institute paid parking is in limbo, too.

However, a request for new T-hangars is ready to go out to bid. The project was initially held until Massport conducted a security analysis immediately following Sept. 11.

Massport also cut staff at the field going from 21 to 17. The newly created position of noise coordinator was one of the casualties. According to Airport Director Barbara Patzner, those activities will be consolidated with work at Logan.

The decade-old Community Summer Jobs Program has been suspended and odds are that the program will not be in the 2003 budget. Last year, Massport contributed $30,240 for the surrounding towns to hire students. In addition, all Massport student internship programs were terminated after Sept. 11.

A report analyzing the amount of economic benefits of the airport on the surrounding communities was another cost-cut victim. The report did, however, conclude that given a full fiscal year of commuter service and revenue from the various ancillary services that economic benefits most likely surpassed the almost $110.6 million generated last year.

What’s the good news for Massport? As explained in the annual report, Massport collected more in fees for fuel, landing, parking, and night surcharges due to increased aircraft activity. Patzner pointed out that while corporate jets do not pay landing fees, the operative word is " yet. "

The bottom line also reflected a 19-percent increase in operating expenses and a declining surplus. Patzner stated a major portion of the $151,000 drop in the surplus was spent snow removal costs and legal fees during 2000 and 2001.

Last year Massport invested approximately $1.9 million in airfield, terminal, and other facility improvements at Hanscom. The various projects included one runway reconstruction and a ramp was redesigned.

Hanscom set another record when it became the first airport in the country to become ISO 14001 certified. The international certification means that an organization has a standardized environmental management system with systematic and comprehensive management approach to environmental concerns. Requirements for certification include methods to track and improve environmental performance.

Hanscom’s deficit is related to accounting methodology. The report states that " Hanscom has never generated revenue when amortized capital expenses are included in the calculations. " Between 1985 and 1999 when these expenses were added to any operating revenues, Hanscom’s budget was traditionally in red ink; from 1993 through 1997 the amount exceeded $2 million annually.

Amortization is a form of depreciation or the allocation of the cost of an asset over its useful life. This method was used to address aging facilities and equipment while aircraft activity decreased because of the slowed economy.

As the economy improved, the agency decreased the deficit annually reaching a low of $1.1 million in 2000. Last year, amortization increased 1 percent and the deficit went up 14 percent to more than $1.3 million.

What happens next year is anybody’s guess.

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