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Tuesday, February 7, 2006
BUDGET THREATENS RURAL AIRPORTS

WASHINGTON, DC – One of the lessons I learned during 8 years as Governor of Nebraska was that Washington has a bad habit of trying to cut federal spending by shifting costs to state and local taxpayers.

Well, here they go again. The Administration is trying once more to balance the budget on the backs of citizens who live in less populated rural states like Nebraska.

The President’s new budget proposes cutting by more than half a program that is important to most rural Nebraskans. 

The program is called Essential Air Service which provides subsidies to airports in smaller communities so that residents may continue to fly into and out of their hometowns without having to drive long distances to airports in larger cities.

The Administration proposes cutting the Essential Air Service Program from $110 million in 2006 to $50 million in 2007. In addition, the Administration plans to implement a cost-sharing program which would require EAS communities to come up with a portion of their subsidy in order to continue air service. If this plan is approved it will mean residents of 7 Nebraska cities will be given the choice of possibly raising local taxes or air fares if they want to keep commercial airline service.

Let’s take a look at how much this could cost some of Nebraska’s airports. Places that are less than 210 miles from the nearest large or medium hub airport would be required to pay 25 percent. All others would pay 10 percent. Here is approximately what that means in actual dollars to 7 Nebraska cities:

• Grand Island: $300,000 • Kearney: $292,000 • McCook: $150,000 • Scottsbluff: $124,000 • North Platte: $87,000 • Alliance: $65,000 • Chadron: $65,000

Even before these proposed cuts were announced, the City Manager of Chadron had written me about Essential Air Service. Al Vacanti said that Chadron is currently in serious negotiations to secure a call center operation that will ultimately employ more than 100 full time employees and help replace jobs recently lost when another company closed its doors.

His letter said one very vital factor in the company’s decision to expand its operations into Chadron is the presence of essential commercial air service. He called it a lifeline for many communities such as Chadron, and in this case is going to make the difference between bringing in 100 quality jobs and watching that opportunity possibly go to another community. As Mr. Vacanti states in his letter, use of the word “essential” has never been more appropriate.

I agree with Mr. Vacanti. Having an airport located reasonably close is not only a convenience to rural Nebraskans, it is necessary for economic development. For cities to prosper and encourage businesses to locate there and provide jobs for its citizens it is essential that they offer a full range of transportation services.

I intend to fight for Nebraska on this important issue just as I have in past years. Nebraskans are more than willing to take our fair share of cuts to help balance the budget but it’s unfair when rural states like ours take a disproportionate share of the reductions especially when they involve cuts that adversely impact economic development and jobs.

I’ve said it before and I’ll say it again. When it comes to rural living Washington just doesn’t get it. We may be small in numbers but we deserve to have similar services as those who live in larger cities.

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