SENATE APPROVES MUSTO/BAKER RESOLUTION FOR CARGO AIRPORT STUDY

            HARRISBURG, June 29 - The state Senate has adopted a resolution sponsored by Senators Raphael J. Musto and Lisa Baker directing the Legislative Budget and Finance Committee to study the potential risks and benefits of the proposed cargo airport project on the greater Hazleton area.

            "We should not move forward one inch on this project until all questions are answered and that we are assured that it is in the best interests of the taxpayers of northeast Pennsylvania," Musto said.  "This detailed study will provide us the answers we need before we commit more money and resources."

            Baker added, "The public has a right to know and analyze the details of the proposal and to seek expert advice as to its feasibility.  This study is not only prudent, it is absolutely necessary before we can seriously consider investing hundreds of millions of dollars in public monies."

            The resolution requires that the study be completed by June 30, 2008.

            While the two area senators said the promise of the proposed cargo airport might improve the economy and generate new jobs, the project must be weighed against an estimated $1.6 billion cost and the possibility of committing the county to additional funding obligations down the road.

            They said they want to know more about the developers' plans, their willingness to invest private funds and what alternatives might exist should the project fall short of its goals.

            Baker and Musto also said they want a detailed understanding on how the proposed airport authority would be structured and authorized to incur debt.

            The lawmakers added that the Legislative Budget & Finance Committee study can pinpoint how the proposed cargo airport would impact the community's current infrastructure such as schools, highways and utilities.

# # #

EDITOR’S NOTE: FOLLOWING IS THE TEXT FROM THE RESULTION (Senate Resolution 144)

     1  Directing the Legislative Budget and Finance Committee to study

     2     the economic impact of the proposed Cargo Airport on the

     3     greater Hazleton area and the potential risks and rewards to

     4     this Commonwealth of providing economic development funds to

     5     support this project and to make a report.

     6     WHEREAS, A major new cargo-only airport has been proposed in

     7  the Hazleton area in Carbon, Luzerne and Schuylkill counties

     8  that has been projected to bring in 1.4 million tons of freight

     9  by 2012 with the potential to create more than 4,500 jobs for

    10  airlines, cargo handlers, security companies and warehouses; and

    11     WHEREAS, The proposed cargo-only airport has been projected

    12  to cost $1.6 billion funded through State, local and private

    13  moneys; and

    14     WHEREAS, The location of the proposed cargo-only airport lies

    15  outside the corridor currently identified by the Federal

    16  Aviation Administration to improve airspace in the northeastern

    17  United States; and

    18     WHEREAS, No firm commitments have yet been made by any major

    19  air cargo transport companies to use the proposed cargo-only

     1  airport; and

     2     WHEREAS, The role of the project developer in the financing

     3  and long-term operations of the proposed cargo-only airport is

     4  publicly unspecified; and

     5     WHEREAS, The proposed cargo-only airport would create the

     6  need for a regional airport authority to incur debt for the

     7  projects, and the appropriate governance structure of such an

     8  authority has yet to be determined; and

     9     WHEREAS, Numerous questions and concerns have been raised

    10  regarding the impact of the proposed cargo-only airport on local

    11  rail, road and water infrastructure, as well as the impact of

    12  new workers on local schools, health care and emergency

    13  services; therefore be it

    14     RESOLVED, That the Senate direct the Legislative Budget and

    15  Finance Committee to study the economic impact of the proposed

    16  Hazleton Cargo Airport on the greater Hazleton area and the

    17  potential risks and benefits to this Commonwealth of providing

    18  economic development funds to support this project; and be it

    19  further

    20     RESOLVED, That the Legislative Budget and Finance Committee

    21  evaluate the likely return to the Commonwealth for investing

    22  State funds into the proposed cargo-only airport; and be it

    23  further

    24     RESOLVED, That the Legislative Budget and Finance Committee

    25  investigate the reasonableness of the assumptions used to

    26  estimate the job creation and other economic impact figures

    27  cited by project developers and determine the estimated cost to

    28  taxpayers; and be it further

    29     RESOLVED, That the Legislative Budget and Finance Committee

    30  consider the potential impact of a cargo-only airport on local

    20070S0144R1254                  - 2 -   

     1  roads and other infrastructure as well as the impact of new

     2  workers on schools, health care and other social services in the

     3  greater Hazleton area; and be it further

     4     RESOLVED, That the Legislative Budget and Finance Committee

     5  examine the governance structure used by local governments

     6  elsewhere in this Commonwealth and in other states to monitor

     7  and manage large airport construction projects and their

     8  subsequent operations; and be it further

     9     RESOLVED, That the Legislative Budget and Finance Committee

    10  be authorized to seek a contractor or consultant to assist in

    11  its study; and be it further

    12     RESOLVED, That the Legislative Budget and Finance Committee

    13  report all findings and conclusions on this issue to the Senate