Ogdensburg Bridge and Port Authority passes 2024-25 budget, anticipates switching air subsidy program back to EAS
Dec. 27—OGDENSBURG — Ogdensburg Bridge and Port Authority officials passed an $11,643,551 budget for 2024-25 and anticipates shifting the federal airline subsidy from Alternate Essential Air Service (AEAS) back to Essential Air Service (EAS).
The Essential Air Service program subsidizes flights in and out of small regional airports to larger hubs. The OBPA had been under the EAS program when its former carrier, SkyWest Airlines, was in place. After SkyWest gradually reduced flights and eventually pulled out, the OBPA had to switch to AEAS.
Under the AEAS program, the federal Department of Transportation gives a stipend to the OBPA, which pays it out to its selected air carrier based on need. Under the EAS program, the DOT pays the money directly to the airline.
The current AEAS contract with Contour Airlines expires in the fall of 2024. Prior to the expiration, the OBPA will solicit bids from airlines, which can include Contour, to take the EAS contract.
The 2024-25 OBPA budget anticipates revenues totaling $9,102,729. OBPA Executive Director Steven J. Lawrence said the calculations are based on what they know they'll receive, based on conservative estimates for things like airport traffic, bridge traffic and deliveries in and out of the Port of Ogdensburg. It does not mean the OBPA is planning to operate at a deficit.
If revenues come in lower than expected, they make reductions in capital expenditures. If they come in above the estimate, then the expendable capital projects included in the gap will get done.
"On the expense side there's things we've got for capital expenditures we put in there with hopes to take care of it," Lawrence said. "We'll manage capital expenses to keep things in line with the budget."
One measure the board took going into next year is eliminating six of seven open jobs.
During the Dec. 13 OBPA Board of Directors meeting when they approved the budget, Chairman Vernon D. "Sam" Burns noted that the OBPA continues to see lower traffic across the international bridge and at the airport.
"A lot of the reasons we have a deficit ... things haven't changed. We're still having issues with revenue across the bridge ... a decrease in revenue at the airport, and all how it ties in together," he said.
A large portion of the $2 million budget gap is due to the airport. However, with an airline in place that's doing the full contractual slate of flights, they could reach the magic number of 10,000 enplanements, which automatically brings in a $1 million federal grant to be spent at the airport. If they hit 10,000 enplanements and more of those passengers are Canadian, it also means more revenue from the international bridge and more spent on parking fees at the airport.
"That's what we're going to look at when we get the propositions for EAS," Lawrence said.
During the Dec. 13 meeting, Lawrence told the board that an ongoing major renovation of the airport terminal has features that are aimed at raising the airport's profile by drawing the community to the airport for reasons beyond travel.
It will come with a great room that "presents as an opportunity to help the community or help others generate income, charities and all of that kind of stuff," Lawrence said.
"We have looked at it from a public health standpoint ... we've had a pandemic in the world each decade for the last three decades. In my opinion, we're going to have other issues and we geared that space up with that eventuality," he said. "If something were to happen at the hospital, we may be able to help out in some way in an emergency."
They're also hoping the new additions can become a new revenue stream for the OBPA. The great room will be available to rent for public or private functions. They're also looking at adding a rental car service and installing a cafe
"We believe we can generate excitement with the drawings and renderings we have," Lawrence said.
Go to wdt.me/uugnY5 to see the entire OBPA 2024-25 budget document.
