Tweed Bailout Approved

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by Melissa Bailey | Apr 7, 2009 7:34 am

(6) Comments | Commenting has been closed | E-mail the Author

Posted to: City Hall

In a split vote, aldermen approved a $160,000 rescue package for the Tweed-New Haven airport.

The mid-year subsidy, which addresses a shortfall in the airport’s budget in the current fiscal year, was approved by a vote of 19 to 9 at Monday’s Board of Aldermen meeting. It was approved by the Finance Committee on March 12 after an extensive hearing. (Click here to read more.)

Though the stipulation was not encoded in law, the business community has given its word to match that subsidy with $160,000 in private funds.

Aldermanic President Carl Goldfield, of the “yea” votes, said the subsidy was a necessary step to avoiding a larger problem.

“If we don’t help the airport get through the end of the year, it collapses and comes back to us,” he reasoned.

Hill Alderman Jorge Perez opposed the proposal.

“Taxpayers should not be subsidizing this,” said Perez. “We’ve been promised time and time again that this will be self-subsidizing.”

Perez added that there are better ways to spend city money, such as on senior centers or by giving laid-off workers back their jobs. If the subsidy is needed so badly, he argued, the New Haven Chamber of Commerce should come up with the remaining $160,000 that the city is subsidizing.

The airport is owned by the city and run by a private contractor. The city has long stated a desire to make the airport self-sustaining. In recent years, the subsidy has fallen from $900,000 in FY07 to $800,000 in FY08 to $550,000 in FY09.

Goldfield said when aldermen cut the subsidy last budget season, airport officials warned it would be difficult to make it through the year on just $550,000 in city funds. They closed the gap part-way, then asked for a mid-year bailout, which was approved Monday night.

Voting no on the proposal: Jackson-Brooks; Perez; Smart; Brison; Lee; Antunes; Paolillo; DePino; Edwards. Yes: Plattus, Colon, Clark, Lemar, Rhodeen; Sturgis-Pascale; J. Rodriguez; Castro; Blango; Jones; Morehead; Shah; McCormack; Silverman; S. Rodriguez; Lehtonen, Sandman; Goldfield; Edmonds-Sepulveda. Absent: Calder, James-Evans.

Goldfield concluded on a hopeful note: In their budget proposal, Democrats have included $2 million in funds for Tweed. If (and that’s a big if) their proposal passes, that would mean the city wouldn’t need to include any subsidy for the airport next fiscal year, he said.

Comments

posted by: Streever on April 7, 2009 9:18am

What did we get out of our money on this one? I think this was an awful decision, made hastily & like all too many of our decisions. Of course the real reason we have to support this is we don’t want to pay back all the $$$ we got from the federal government for the airport. We’re just going to dig ourselves in deeper, though. Every year we’ll spend more, every year we’ll owe more, when we finally acknowledge that this airport is an awful idea, goes no where, & serves no one.

posted by: Moti Sandman - Alderman Ward28 on April 7, 2009 10:03am

Hi Streever:

The funding for this came from the mid year billing fund created from the AMR - NHPD billing.

It is important to note that the city would have to come up with an additional $2million dollars in THIS fiscal year if Tweed did not get the funding. The City is obligated by the FAA to carry on the operations and we would have to figure out how to create this department and fund it all within a few months.

I believe that with the new agreement reached with East Haven & the proposed funding from Hartford, Tweed will “take off”.

Moti Sandman

posted by: Steve on April 7, 2009 12:42pm

Monti,

The AMR - NHPD money is still taxpayer money!!

I hope that if Tweed takes off it takes you and Carl Golfield out on the first flight. Bring your wallet $494.00 plus taxed and fees for rountrip to Philly!!

What a deal!!

posted by: City Hall Watch on April 7, 2009 3:40pm

1. The $160,000 may be coming from the double taxation for ambulance services charged to New Haven residents, also known as the AMR - New Haven Billing account, but at last report, that account had ZERO dollars in it. If it has dollars now, it most likely doesn’t have $160,000.

2. If the alders had said no to the $160K reward for failure to meet goals and budget, the city would NOT be under a $2 million subsidy demand for the CURRENT fiscal year. The total projected operating deficit of Tweed through the end of the current fiscal year ending June 30th is $320,000. By the way, it seems Tweed’s passenger counts are lower this year than last.

3. New Haven taxpayers budget Tweed for two subsidies each year - operating and capital. The operating subsidy was $550K and is now $710K with the $160K enhancement. There is an additional $600,000 if I remember correctly, for capital improvements. Total: $1,310,000.

posted by: Moti Sandman Alderman Ward28 on April 7, 2009 4:18pm

Hi:

I mispoke - the funding came from the Contract Reserve. Not the AMR billing. Sorry for the confusion.

Moti

posted by: Moti for Mayor on April 8, 2009 7:16am

Dont know what hes talkin about means hes real qualified for the job. Voted to spend money when he didnt know where it come from. Easy tell hes a Johnnys boy.

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