Obama FY13 Budget Seeks Cuts in Many Construction Programs
AIP is a much larger share of small airports’ capital budgets than budgets of large airports, which have greater access to the bond markets to finance their construction programs.
In other tranportation accounts, the budget would increase the highway obligation ceiling by $2.7 billion, or 7%, to $41.8 billion. It also would hike Federal Transit Administration spending 3%, to $10.8 billion.
Otherwise, the president’s budget recommends slicing most other construction accounts.
Overall budget cuts at the Dept. of Defense would include a 20% reduction in military construction. Part of that is the continued winding down of the Base Realignment and Closure program, which would drop 43%, to $191 million. BRAC had been a multi-billion dollar account only a few years earlier.
But core construction at the armed services, reserves and national guards also would be slashed by more than $2 billion, or 20%, to $9.1 billion.
Elsewhere in the budget, Environmental Protection Agency aid for water infrastructure would be pared 7%, to $3.4 billion. Within that total EPA assistance to clean water State Revolving Funds (SRFs), would drop 20%, to $1.1 billion, and drinking water SRFs, would be nicked 8%, to $850 million.
The Dept. of Veterans Affairs’ major construction account would be pared 10%, to $432 million.
General Services Administration federal buildings are one of the few winners. GSA’s new construction account would rise 12%, but to a total of only $56 million. The agency’s repairs and alterations program, which includes building upgrades, would get a 77% boost, to $495 million.
Obama said that “the main idea in the budget is this: At a time when our economy is growing and creating jobs at a faster clip, we’ve got to do everything in our power to keep this recovery on track.”
But Congressional Republicans were quick to blast the president’s blueprint. House Budget Committee Chairman Paul Ryan (R-Wis.) said that Obama ”ducked his responsibility” and failed to take credible action to address the debt crisis. Ryan said the House GOP would prepare its own budget measure.
