Gary/Chicago International Airport plans to lay off two employees, or 10 percent of its work force, to help deal with a $675,000 cut in tax revenue brought about by state mandated tax caps.
Airport Director Chris Curry on Thursday added that to a list of measures that include less money for firefighter training and equipment and hiking some airport fees.
"After we cut everything else to the absolute minimum, the last resort for me is people," Curry said. "So this basically tells you we're at our last resort."
The airport authority by a 6-0 vote tentatively approved a $3.1 million budget for 2009 on Thursday. This year's budget is $3.6 million. The 2009 budget must now be reviewed by the Gary City Council and in two weeks the airport authority will take a final vote.
No member of the public commented on the proposed budget at a public hearing Thursday at the airport administration building.
The airport authority still needs to gain approval from the state's Distressed Unit Appeals Board to keep its tax rate above the 2 percent cap mandated by House Bill 1001 to meet its budget, Curry said.
It plans to ask for taxing authority that would raise $202,000 more than allowed under the 2 percent tax cap.
The airport will make its own appeal to the Distressed Unit Appeals Board, but is coordinating its action with the City of Gary, Curry said.
The city would lose $36 million in revenue next year under the state-imposed property tax caps. It also plans to appeal to the state board.
The airport is looking to make up part of its shortfall by shifting about $280,000 in expenses to its compact with the City of Chicago, under which it receives a cut of passenger fees collected at Midway and O'Hare airports.
It is also considering increasing the fee it imposes on aviation fuel pumped at the airport and fees for landing aircraft.
Because the 2009 budget is so tight, any unexpected events or emergencies could blow a hole in the spending plan, according to Curry.
"The major variable with airports is winter," Curry said. "You cross your fingers and hope you won't have a winter worse than average."
