"LAX jobs plan jeopardized by FAA decision"

Friday, May 19, 2006

FAA Blocks LAX's Use of Funds
By Steve Hymon
The Los Angeles (CA) Times


The Federal Aviation Administration told Los Angeles International Airport
officials this week that they cannot use $3.3 million in airport revenues
for an LAX jobs program meant to attract residents affected by airport
operations. 

The program is a key part of the city of Los Angeles' settlement last year
with residents who had sued over plans to renovate the airport. The idea is
to use the program to hire people from neighborhoods most affected by LAX
air and ground traffic. 

The FAA's stance will likely raise questions over the settlement and its
ability to placate airport critics.

"We are looking at appealing the findings," said Nancy Castles, a
spokeswoman for Los Angeles World Airports. "We're also looking at perhaps
pursuing alternative funding options if necessary or redesigning the jobs
program."

Daniel Tabor, who chairs the jobs committee for the LAX Coalition for
Economic, Environmental and Educational Justice, said that the FAA's opinion
was a concern but not a fatal blow. 

Airport officials were going to use their own revenues to fund the program.
The problem is that LAX receives federal money for improvement projects and
therefore must comply with a law that prohibits it from using its own
revenues on anything other than aviation activities.

In the agency's letter, officials from the FAA's regional office stated that
those activities do not include "general economic development, marketing and
promotional activities, that are unrelated to the airport."

The FAA's decision angered City Councilman Tony Cardenas, the former chair
of the council committee that oversees the airport and who helped negotiate
the benefits package. 

He said the FAA's "interpretation is unclear and does not allow us to give
back to the families impacted by the airport."

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