2021-05-31-兰德-Funding_and_Financing_Infrastructure_at_U.S._Airport_15页_681kb

Summary of "Funding and Financing Infrastructure at U.S. Airports" (2020 RAND Report)

Core Content

This testimony by Benjamin M. Miller, presented before the Senate Commerce, Science, and Transportation Committee on June 23, 2021, summarizes the key findings and recommendations from the 2020 RAND report on airport infrastructure funding and financing. The report highlights the financial challenges faced by U.S. airports, especially in light of the coronavirus pandemic, and proposes policy changes to improve the sustainability and efficiency of airport infrastructure investment.

Key Information

• Number of Airports: There are over 19,000 landing areas in the U.S., with 5,099 being public-use airports.
• NPIAS Inclusion: Only 3,321 public-use airports are included in the National Plan of Integrated Airport Systems (NPIAS), which determines eligibility for federal grants.
• Funding Sources: Airport funding comes from various sources, including the Airport Improvement Program (AIP), Passenger Facility Charges (PFCs), and excise taxes. The PFC is a user fee collected from passengers, while AIP is a federal grant program.
• PFC Cap: The current PFC cap is $4.50 per flight segment, and most airports collect this maximum.
• Impact of Pandemic: The pandemic caused a sharp decline in passenger traffic and revenue, with U.S. airports projected to lose $23.3 billion. Cargo traffic, however, increased significantly, though it could not fully offset the loss of passenger revenue.
• Debt and Funding Needs: Airports have $16.6 billion in debt service payments over the next two years, much of which was expected to be funded by PFCs.

Main Recommendations

1. PFC Program Reforms

• Increase the PFC Cap: Raise the current cap from $4.50 to approximately $7.50, indexed to inflation.
• Eliminate Automatic Doubling of AIP Entitlements: Remove the policy that doubles AIP entitlements when Congress appropriates at least $3.2 billion to the AIP.
• Forgo AIP Entitlements for PFC Increases: Large- and medium-hub airports that collect PFCs above $4.50 should forgo their AIP entitlements on a dollar-for-dollar basis.
• Limit PFC Increases to Origin Passengers: PFC increases should only apply to passengers who originate at the airport, not to those with layovers.

2. AIP Funding Adjustments

• Remove Nonprimary Entitlements: Eliminate the automatic allocation of $150,000 per nonprimary airport when the AIP appropriation is at least $3.2 billion. Instead, allow state apportionment mechanisms to handle nonprimary airports' needs.
• Improve AIP Flexibility: Enhance the flexibility and timeliness of AIP grants so that smaller airports can access funds when needed.

3. AATF Reforms

• Establish a Rainy Day Reserve Fund: Create a reserve fund to stabilize the Airport and Airway Trust Fund (AATF) during periods of revenue shortfall.
• Include Ancillary Fees in Domestic Passenger Ticket Tax: Ensure that ancillary fees (e.g., checked baggage, priority boarding) are included in the Domestic Passenger Ticket Tax to avoid favoring certain business models.

Impacts of the Pandemic

• The pandemic severely impacted passenger traffic and airport revenues, with passenger volumes dropping to 95% below 2019 levels in April 2020.
• Cargo traffic increased, but it could not fully replace lost passenger revenue.
• Smaller airports, which rely more on federal grants, were particularly affected by the drop in demand.
• Many airports have borrowed against future PFC revenues, limiting their ability to access additional funds during the pandemic.

Conclusion

The report concludes that the existing PFC program has strong guardrails to prevent misuse of funds and has been a valuable revenue source for larger airports. However, reforms are needed to ensure that funding mechanisms remain resilient and responsive to changing demands. These include indexing the PFC cap to inflation, restructuring AIP entitlements, and creating a rainy day reserve for the AATF. The goal is to improve the financial stability and infrastructure readiness of U.S. airports for the future.