Tech & Biz

Massachusetts Taxes versus Fees Saga Continues

by harringtola | March 4, 2009 at 06:49 am

208 views | 36 Recommendations | 2 comments

Governor Deval Patrick and Massport are at odds over the fees imposed by the "authority" without input or communication. As a result it is being retracted.

On Monday, Patrick's transportation secretary, James A. Aloisi Jr., released a letter written to Massport blasting the parking fee increase. Aloisi's letter rebuked Massport for hitting airport users with higher rates without first looking to trim Massport's $550 million budget. Aloisi also had harsh words for the manner in which Massport imposed the fee hike, saying it was done "devoid of public input."

Aloisi, who was appointed transportation secretary in Janurary, said recently he expected Massport opposition to his plans "because people don't like their cozy little worlds disturbed."

In his letter, Aloisi wrote that "we need to know if there are additional cost savings and efficiencies that can be instituted" at Massport.

Logan and Massport need a new financial funding model.

Massport insisted, however, that the increase was justified to make up for lost revenue due to a recession-related slowdown in air travel. Parking revenues are down about $4.2 million in the last eight months.

"Our decision to raise the hourly parking was not done in a vacuum," the statement said. Already, the agency has let 61 position go unfilled, about 5 percent of its employees, saving $4 million, the statement said.

However, the agency has not trimmed its 75-member parking crew and recently awarded one of its unions a 7.5-percent pay increase over two years.

While the fee rollback will be a welcome relief for airport users, its effect may be short-lived.

Aloisi is pressing for a separate $2 "carbon" fee to be tacked on to Logan parking rates. He says that fee is intended to discourage air travelers from driving to the airport and to encourage use of public transportation. Such a proposal would require the Legislature's approval.

As I mentioned in my report on the parking fees, public transportation does not work for many of the residents of Massachusetts. However the folks in charge do not seem to understand their customer base beyond Boston. As a result, I am sure the customer base will begin to shrink to be only Boston based.

Logan's parking rates are already among the highest of airports nationally. To park for up to 3 hours, for example, will cost $15 at Logan once the rates return to their pre-increase level on Friday. That compares to $12 at LaGuardia in New York; $12 at Los Angeles International; $11 at O'Hare in Chicago; and $4 at Hatsfield-Jackson International in Atlanta.

There are many area airports that can be alternatives, both in Massachusetts and bordering states, such as New Hampshire, Rhode Island and Connecticut or New York. Logan used to be the airport of choice for most of these locations. That is no longer true. It is fast becoming the second or third choice even for residents of Massachusetts.