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Boston: Massport Sets Fiscal Year 2014 Budget of $592 Million

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The board of directors of the Massachusetts Port Authority (Massport) has approved a Business Plan and Budget for FY 2014 of $592 million, an increase of 2.5 percent, or $14.4 million, from FY 2013. About $403 million, or roughly 70 percent of the budget, will fund day-to-day operations of Massport’s aviation, maritime and real estate business lines, as well as its support departments. The balance will go to the capital program to maintain the runways, terminals, roadways and docks.

"The FY 14 budget ensures not only that Massport’s critical infrastructure and its strong credit rating are maintained, it also supports investment needed to Massachusetts citizens, businesses and customers to connect with new markets," said Richard Davey, chairman of the Massport Board and Massachusetts Secretary of Transportation. 

For 2014, Massport will spend nearly $1 million for the international incentive program that supports new entrants to un-served global markets, such as Japan Airlines service to Tokyo and Copa Airlines service to Latin America through its hub in Panama City. Massport’s International Route Incentive Program waives some fees for airlines in the first years of service and provides marketing support for new routes. 

More than $70 million will go for personnel, technology, training and inspections to keep Massport facilities safe and secure. Some $20 million will fund new security camera coverage, new access control and cyber security systems.

Massport will invest $35 million to improve customer service at Boston Logan, with new costs of nearly $14 million for the operation of the new Rental Car Center and a unified bus system that will replace some 90 diesel-powered vehicles with 30 Massport-owned clean diesel electric hybrid buses. 

The budget calls for more than $24 million to be spent in being a good neighbor by supporting summer jobs, donating to community causes and spending $19 million in payments in lieu of taxes to the cities of Boston, Winthrop and Chelsea. Another $3 million will be spent maintaining the park system Massport operates in East Boston and South Boston.

To foster economic growth, job preservation and support the regional economy, Massport subsidizes maritime operations at Conley Container Terminal by some $20 million each year. A business plan goal is to improve financial performance of its maritime business "by executing revenue and expense strategies." The budget calls for a $3.8 million increase, which is supported by an anticipated 7.0 percent increase in budgeted container volume.

The FY 14 budget contains some $6 million in cost savings resulting from reduced utility costs, from low natural gas rates and recent energy efficient system upgrades, the restructuring of Logan Airport’s shuttle bus service and maintenance agreement and other reductions in departmental budgets.
 

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